Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Your first question comes from the line of Curt Woodworth of JP Morgan.
Curt Woodworth - JP Morgan
Yes, hi, good afternoon.
Sal Fazzolari
Good afternoon, Curt.
Curt Woodworth - JP Morgan
You know, Sal, you expressed a fair amount of confidence in getting back to 11% margins in Mills in '08 and I guess I'm just wondering: how exactly are you looking at it? And: do you think it's going to be kind of a staggered rise in margins over the course of '08? Or: do you feel like entering the year you're going to have your cost structure pretty much optimized as you see it? And maybe: just explain some of the moving pieces in terms of either the dollar volume -- the dollar amount of benefits you're going to get from maybe exiting some of these weaker contracts, as well as some of the one-time costs they are taking this year to add headcount, maybe make some selective hiring, as well as some other cost issues.
Sal Fazzolari
Well, it's a cumulative effect of two things. One: is the cumulative effect, Curt, of all the actions that I outlined in my comments. And, like I said, we're confident we'll have either all of them or most of them implemented by the end of the year. So that sets the stage. And the second point is: the production. We did have some very unusual production outages this year that we certainly don't expect next year.
That is further now, we even have more confidence now based on what we're seeing as far as the inventory levels, the Chinese thing that I mentioned, and consumption and production outlooks that we're seeing for next year from our customers, as well as the Institute. So all the metrics are pointing to higher production, higher consumption. Also if you look at the things that I've mentioned, we are going to be announcing some new contracts signings in some key countries outside those two, North America and Western Europe.
Also, like I said, there is a couple of problem contracts that we have in North America that we're going to sort out one way or another and some of these other cost initiatives gives us considerable confidence that we can get the business back to more historical levels.
Curt Woodworth - JP Morgan
Okay, great. And then in terms of thinking about the new contract signings coupled with adding more content per mill, do you feel like -- I mean: this quarter you were down organically by about a point. In an environment where do you think that, say, production growth is going to be 6%, do you feel that, with the new contract signings, as well as kind of the content story which has always been a part of the growth rate here, high single-digits to the even low double-digit growth in Mills is possible? Or: is that going to be kind of countered by maybe getting out of some of these contracts that you're talking about?
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