Kaydon Corporation Q3 2008 Earnings Call Transcript

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2008-10-28 14:19:10.0

Tags: Financing, Call Transcript, Earnings, Financial Accounting, Investment, Operational Planning, Finance, Business Operations, Seeking Alpha, Financing, Call Transcript, Earnings, Financial Accounting, Investment, Operational Planning, Finance, Business Operations, Seeking Alpha, Kaydon Corp.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). And we'll take our first question from Mike Hamilton with RBC.

Mike Hamilton - RBC Capital

Good morning.

Ken Crawford

Hello, Mike.

James O'Leary

Good morning.

Mike Hamilton - RBC Capital

I was wondering if you could give a feel of the degree you've got one on customer status in what they are finding and funding out wind projects. Obviously, a lot of these are fairly small operators at the end side where credit availability becomes an issue here?

James O'Leary

There has been a tremendous amount written about that particularly in the last week or so. We have yet to see it in our order book and at the present, a lot of that is just speculation. We do know that projects that go past what has primarily been committed 2011 and forward has been a bit suspect. And if you recall, last quarter we talked about a possible capacity expansion beyond what we've done, but we also said we'll only do that with comp customer commitments and long-term supply agreement similar to what we have now for certain of our customers.

Mike, I think that the financing issues to general economic uncertainty, the political environment and while I did know that the PPC got renewed, it got renewed for another year which is not optimal is not certainly not what the wind energy industry had been lobbying for. So, I think we'll obviously go much beyond the current horizon and the products that we had talked about in the previous conference call. There is a lot of uncertainty about that.

As far as near term projects, we have yet to see anything that directly impact us. But we are in the process of going through our business planning process now, as we speak. We're going back to every customer, going through every contract, and trying to get a better understanding if there is anything like that, but right now, nothing we are aware of.

Mike Hamilton - RBC Capital

Then there is a follow-up, Jim. What are you looking at on fourth quarter CapEx based on what you are going forward plan is?

James O'Leary

Relatively unchanged, but can give the...

Ken Crawford

Yeah, we are looking at about $25 million CapEx in Q4, which would bring our total to little bit more than $70 million this year.

Mike Hamilton - RBC Capital

 

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