Methode Electronics F3Q09 (Qtr End 1/31/09) Earnings Call Transcript

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2009-03-12 10:30:32.0

Tags: Revenue, Call Transcript, Earnings, Ford Motor Co., Operational Accounting, Finance, Seeking Alpha, Methode Electronics Inc.

Question-and-Answer Session

Operator

(Operator Instructions). First question comes from David Leiker with Robert W. Baird.

Keith Schicker - Robert W. Baird

Hi. Good morning. It's Keith Schicker on the line for David. I just wanted to stay with the broader picture question going forward. Don, if we look in the non-automotive businesses, you're about five or six weeks now into the fiscal fourth quarter, how are things trended relative to what you saw in the fiscal third quarter?

Donald Duda

That's going to be difficult to answer because we don't provide guidance. I don't want to say the things that stabilized. I think we're still seeing the... around the world, I think we're seeing a tough macro economic condition. We've seen business over the last six months... I can say last six months, probably last five months, drop-ins, we expect a very tough calendar year 2009 here. And again, I can't give you more color than that. I'll be starting to give you guidance.

Keith Schicker - Robert W. Baird

Sure. That's helpful. And if we look at the 98 million of restructuring just announced, if I understood you correctly, that's going to be wrapped up by the second or the first half of the fiscal 2010. How does that break down by segments if we wanted to flow that through our model?

Douglas Koman

See, I'm just trying to think we have most of that is automotive I guess. We have a little bit of... we have little bit in the interconnect. As Don mentioned we've got TouchSensor. We're moving their manufacturing down to Mexico. We're also consolidating the Power segment group, but the... I think the substantial portion of the charge is going to be in automotive.

Keith Schicker - Robert W. Baird

Okay. And if we look at the Ford revenue that's going to start be transferred in July, the share. Is there anyway that you can quantify how much revenue is going away?

Donald Duda

I want to be mindful of our relationship with our customer. I believe Ford has handled this extremely well, very, very professionally. The revenue in the Reynosa facility from Ford probably say a year ago was in the $60 million range, and on an annual run rate. And now we didn't do region projection going forward because we know we were exiting that business. So we've not taken into account the further reduction in auto sales. But, last month it was running something below 9 million, so and losing close to 3 million. And that's probably as much color I want to give on that and you certainly deserve an answer. But again, I want to mindful of our customer.

 

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