Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Will Stein – Credit Suisse.
Will Stein – Credit Suisse
I was wondering if you can talk a little bit about the strategy in China? That was one of the regions you didn’t talk about in the prepared remarks.
Gregory B. Kenny
China is an interesting place for us. We have a business that we have a minority position in, in the southern part of the country as you know and we’re on the [upside] peninsula with an energy cable investment where we have a minority position as well. We also have a wholly owned business around the automotive industrial business. We continue to look for China to begin to develop stricter standards around product design. There is a lot of small facilities, it’s really regionalized. So I think again, we’re doing probably on a combined basis more than $100 million of revenues in China as if we owned this companies and didn’t report for them on an equity basis.
We have a good window but I continue to see China as a place we’ll come back to as that market sorts itself out. We do sell in to China, high voltage cables and extra high voltage from France which is another look in to that market where there is a lot of interest in world class specifications and standards. We will focus more in the Southeast Asia Will and keep our eye on China but probably I think it’s a year or two before we go back in a more earnest way. Clearly, they’re reporting strong demand globally, it’s just related to product design and also the ability to access that market. We’re watching, we’re participating but our interest is right now in other markets.
Operator
Your next question comes from Gary Farber – C. L. King.
Gary Farber – C. L. King
Can you reference some of these macro indicators like the architectural billing index and things like that? Can you elaborate as to what levels of recovery you need to see in those kinds of macro indicators or others for your business to start to leverage the cost structure? And, if that doesn’t happen what additional actions can you take on your cost structure?
Gregory B. Kenny
We’re broadly selling in about 100 countries and we have some business like data communications and harnesses that are probably earlier cycle businesses and then others that lag financing and design by some months. I would say we’re seeing as I read monthly operating reports and weekly reports, we see a mixture of some things that are encouraging and other things that are sort of moving sideways. We expect North America non-resi to back off and resi is apparently bottoming. We’re also tied to industrial capacity utilization which is at a record low of I think 67%.
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