Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Alexander Paris – Barrington Research.
Alexander Paris – Barrington Research
I’m sorry but I just got on a little bit too late and I missed the auto estimates that you had for this service that you use. Could you repeat those?
Gordon Hunter
This is information from J.D. Power and it shows that the North America passenger car production declined by 13% sequentially and 14% year-over-year. However, the large car production is down by 32% sequentially and down by 45% year-over-year. I also mentioned that the European car production was down by 18% sequentially.
Alexander Paris – Barrington Research
Did they change their forecast for the full year?
Gordon Hunter
I believe they have. Yes. I don’t have those numbers, Alex, but I am sure they have brought those down.
Alexander Paris – Barrington Research
In the electronic business, I know you’re in the process of transferring things there. As you get transferred over there completely do you – I know your markets are worldwide in electronics but does your business there would tend to be more influenced by economic growth in the Pacific region compared to what the breakdown would be now? Or it pretty much stays the same because you ship everywhere pretty much the same?
Gordon Hunter
Well we ship everywhere but more and more our customer base for electronics has been consistently increasing and so our ship to points tend to be manufacturing locations in Asia at an increasing rate. Some of those, of course, are contract manufacturers or the ODMs that are building equipment for European and North American brand of names, but the manufacturing and more and more of the design choices is done in Asia.
As far as the end markets go, of course the U.S. consumer market is still a very important part of global consumer electronics, even if more of those products are made in Asia. But I do believe that the growth in Asia and the growth in population and wealth in the Asia region means that Asia becomes a bigger market over time also for consumer products, and obviously telecommunications equipment.
Alexander Paris – Barrington Research
Just finally having said that this lower than expected demand, is that kind of following the economic trends? That is, you saw more of a disappointment in North America and Europe and less in Asia?
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