Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Jeff Beach.
Jeff Beach - Stifel Nicolaus and Company, Inc.
Yes. Good morning, Greg, and another great quarter.
Greg Kenny
Thanks, Jeff.
Jeff Beach - Stifel Nicolaus and Company, Inc.
I'd like you to -- I think there's a lot of interest among investors about the electric utility cables. You had another great quarter here with very strong growth. Can you talk a little bit, break down the geographies and talk a little bit more about the trends in Europe looking out into 2008 in general, the emerging countries whether you are seeing this very strong growth that’s, that Phelps Dodge is experiencing, is that going to continue?
And then in particular in North America where you are citing the weak demand for your low-voltage cables and I'd like to hear a little bit about what you think the overall trend in spending is, in particular what I'm hearing from contractors is that where there is weak demand for, at the very local level for residential housing, that many utilities are continuing to spend and just moving their spending plans up into medium-voltage and higher-voltage distribution. And I -- you've got inventory situation all that, but I'd just like to hear what you think the overall trend is in spite of this weakness? Thanks.
Greg Kenny
Well, it's strong, Jeff. You know, we -- and I think we have a tendency to look at the, if you look at, say the North American electric utility business, which is approximately a $900 million business, maybe 30% would be transmission-related cables, 45% might be medium-voltage and 25%, I may not have done the math right, is low-voltage which connects up the neighborhoods, etcetera.
And what we've experienced is a substantial decline in the low-voltage business because they are hooking up less neighborhoods because there's less neighborhoods being undertaken. You know, the US has had, we have seen some rotation with budget dollars to other places, but I would say that we've not yet seen a full offset with dollars being spent on the heavier-gauge cables.
But again, a lot of analysts write about transmission, which is the long-haul links which, while that the that business is project-driven, it is a business that we think and certainly you would surmise from FERC, is one that has a long-term investment cycle.
And then you move into the cities and the heavier-gauge medium-voltage cables as the cities reinforce and again, that generally is strong. And we've said that the low-voltage area, which is about 25% of our business maybe 30%, is weaker.
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