Encore Wire Q1 2009 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 1

2009-04-24 11:30:19.0

Tags: Environment, Call Transcript, Quarter, Earnings, Sterne, Recruitment & Selection, Human Resources, Workforce Management, Seeking Alpha, Encore Wire Corp.

Question-and-Answer Session

Operator

(Operator Instructions) First up is Michael Coleman with Sterne, Agee. Please go ahead.

Michael Coleman - Sterne, Agee & Leach

Good morning.

Daniel Jones

Hey Michael.

Michael Coleman - Sterne, Agee & Leach

Daniel, normally you get a seasonal lift in volumes from your first quarter to second quarter, kind of given in the environment and what you're seeing in April, did this pattern hold or to what degree is this pattern muted in the kind of environment that you're seeing?

Daniel Jones

Well, during the first quarter Michael, January and February were what they were and March actually picked up a little bit toward the end. So, with that said and discussing the first quarter, it appears to be headed in the right direction.

Michael Coleman - Sterne, Agee & Leach

Okay. In the first quarter, given the volatility in pricing and so forth, are you seeing contractors delay purchases or defer purchases?

Daniel Jones

That's being going on for 12, 18, 24 months now. But it seems to be possibly in some areas, it's about as lean as it could get and its run its course. In other areas, we're still seeing the growth and the orders coming in specifically job related to universities and schools and hospitals and municipal top building.

So, it really as far as cutting back, we've been in that same environment now for about 18 to 24 months.

Michael Coleman - Sterne, Agee & Leach

Okay. In terms of project activity or large projects that you know about kind of in the pipeline, what are you seeing there in terms of next couple of months?

Daniel Jones

The ones that we're put on hold are starting to leak back out into the market. We've had some competitors receive orders back in over the last year or so. But that seems to have run its course. What we're seeing in the market today more specifically is the jobs that are out there are pretty quick to be cut. They're in the market to buy the manipulation or the back in forth, or the shopping, the games that used to be played or not being played.

When people come to the table now Michel, it seems that they are ready to purchase the wire, which is really helps us it helps our model. It's the way for us to go to market. So, I think the activity today and as I stated at the end of the first quarter, seems to be headed in the positive direction both volume and the process; the order process.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement