Griffon Corp. F4Q08 (09/30/08) Earnings Call Transcript

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2008-11-20 17:03:13.0

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Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Bob Labick with CJS Securities.

Bob Labick - CJS Securities

Good afternoon.

Ron Kramer

Good afternoon.

Bob Labick - CJS Securities

Hi. I haven't had time to go through the release in full detail, but I had a couple of questions I wanted to ask. First of all, congratulations; it looks like you held up very well in a tough environment.

Ron Kramer

Thank you. We think we did.

Bob Labick - CJS Securities

Yes. As it relates to Garage Doors, the sales were, I wouldn't say strong, down 2% year-over-year, but certainly much better than the environment may otherwise dictate. You mentioned a little bit of mix and a little bit of price in there. Can you give us a sense of unit volumes, and also a sense of what your salespeople in the field are saying for demand on a go-forward basis, just to start there? And I have a couple more questions on doors also.

Ron Kramer

Well, I think we actually had reduced unit volume. So Frank, do you want to.

Frank Smith

Yes, what you are seeing, Bob is that the reduced unit volume was offset by the higher selling costs that we were able to get for the materiel price increase, the steel price increases.

Bob Labick - CJS Securities

Well, I’m trying to guess here; were units down 10 but you had 7 price, or were they down 20? Could you give a ballpark range of where units were going?

Frank Smith

I think the best number to use Bob is about 10% in 2008.

Bob Labick - CJS Securities

For the full year?

Frank Smith

Yes.

Ron Kramer

As you would expect, we're cautious on the outlook for the business. Clearly, we continue to operate the business well and profitably. We look as everyone else does at what's going on in the housing cycle. And while it's impacted us, we continue to have a profitable business. We're continuing to manage our cost and expectations that we're not finished with the downturn in the housing cycle, but we're well positioned as a brand.

We have the best distribution. Our relationship with Home Depot is strong. We continue to do business with Menards. Our dealer network is strong. So whatever the level how the housing market is going to be, Clopay was well positioned to participate in it.

 

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