Woodward Governor Company Q3 2009 Earnings Call Transcript

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2009-07-24 00:55:38.0

Tags: Turbine, Colorado, General Electric Co., Call Transcript, Earnings, Sales Strategy, Sales Force Management, Telecom & Utilities, Sales, Seeking Alpha, Woodward Governor Co.

Question-and-Answer Session

Operator

Thank you, sir. This question-and-answer session will begin at this time. (Operator Instructions). Our first question comes from Tyler Hojo from Sidoti & Company.

Tyler Hojo - Sidoti & Company

Hey good evening guys. Okay Hi. First question: I just want to make sure I heard that right did you say free cash flow this year at 140 to 160?

Bob Weber

Yes.

Tyler Hojo - Sidoti & Company

Okay. And just for clarification before you were saying roughly flat with last year, right?

Bob Weber

No, well, earlier we were forecasting 110 to 140.

Tyler Hojo - Sidoti & Company

Right, okay. All right, good clarification; okay, thanks. And then just on the guide, did the prior guidance include the inventory step up that you spoke to in the press release there.

Bob Weber

No, it did not.

Tyler Hojo - Sidoti & Company

Okay.

Bob Weber

So that's the new item this quarter.

Tyler Hojo - Sidoti & Company

Okay, got you. And was it something that you were anticipating this quarter or was it something that was somewhat a surprise or just an unknown.

Bob Weber

We nearly would have the step up. It was not completely valued at the time of the last quarter.

Tyler Hojo - Sidoti & Company

Okay, got you. And just in regards to the wind side of the business, I guess the new Collins facility is going to be up soon. But just regards to what you are doing in Colorado, have you had any headway into GE there, because they seem like they are pretty optimistic in terms of seeing the back half pick up on their wind business?

Tom Gendron

Yeah, Tyler, we have not -- on the converter side, have not made any sales to GE. We do have some sales on some digital electronic products since GE went. So, at the moment it's pretty small level, there are still obviously a place we'd like to sell. We had shipped our first converter unit out of Colorado.

We expect some increased sales coming out of the U.S. in particular, because we have located the site here. We have been able to pick up market share with our current customer base and are trying to penetrate the U.S. market. So, it's working as planned. We still are looking to capture more wind turbine customers, and that's somewhere to be concentrated on over the next year.

 

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