Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Budd Bugatch – Raymond James.
[Chad] for Budd Bugatch – Raymond James
This is actually [Chad] filling in for Budd who's traveling this morning. But before I ask my first question, let me just say, Dave and Susan, the slides, I thought, were extremely helpful so consider one vote in favor of continuing that.
My first question, David, you mentioned EBIT margin improvement as being a top priority. Assuming sales in 2010 are sort of flat to maybe up modestly and given all the cost actions that you've taken, the divestitures, more disciplined pricing, etc, could you give us maybe a peak at what type of EBIT improvement we might expect either in dollar terms or in margin terms?
David Haffner
[Chad], it's going to take some volume to get us all the way to our 11% goal, but the changes that we have made, the restructuring of the businesses, eliminating some of those with extraordinarily or I'll say under average EBITs, will allow us next year to approach or exceed slightly double-digit EBIT.
[Chad] for Budd Bugatch – Raymond James
And just, I guess, a quick follow-up. You've now anniversaried some of the new customer wins that have helped the company kind of gain market share. Could you give us some color or feel for other market share opportunities maybe over the next year either versus imports or new products ramping up, or any other potential deverticalizations?
Karl Glassman
[Chad], this is Karl. You're right we've anniversaried most of those first half of last year wins. There continues to be some small wins ala the deverticalization of Sealy's box spring business that we're getting the benefit of. We continue to talk with others about other opportunities. As you well know, the uncertainty of the financial position of some of our customers right now makes that conversation a little difficult at this time until things all sort themselves out.
We certainly have picked up some share in store fixtures, a share of business that we really like, well performing business. So, the extraordinary, we continue to work it everyday, but it would be premature to announce anything, but suffice to say that our people are aggressively pursuing all opportunities. We understand the benefit that volume through this cost structure, this most efficient, lower cost cost structure would inure to us at this point, which would be significant.
- To read the full transcript on Seeking Alpha, click here »
