Powell Industries F2Q09 (Qtr End 3/31/09) Earnings Call Transcript

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2009-05-06 13:30:35.0

Tags: Job, Call Transcript, Oil & Gas, Earnings, Seeking Alpha, Powell Industries Inc.

Question-and-Answer Session

Operator

Thank you, sir. We'll now begin the question-and-answer session. (Operator Instructions). Our first question comes from the line of John Franzreb with Sidoti & Co. Please go ahead.

John Franzreb - Sidoti & Co.

Good morning, guys.

Patrick McDonald

Hi, John.

Don Madison

Good morning John.

John Franzreb - Sidoti & Co.

My first question is during the last downturn you guys made a quarter strategic shift in business away from utility market, into the oil and gas which was very fortuitous considering the upturn we had in the oil and gas market. Seeing the potential now a shift in oil and gas, you've clearly made you've done some transit work. Do you see yourself drifting away from being so oil and gas focused? Is that kind of -- any kind of strategic shift going on in the corporate level to address new markets or revisit old markets, that you were in the past?

Patrick McDonald

John, we have never shifted away from markets. I think we've also been one that as the opportunity presented itself, we tried to capitalize on those opportunities. And again that's what we're trying to do right now. Where we see the markets are going to have strength and we do see areas that have strength, how do we go capitalize on those. I think strategically we always look at how to -- we continue to try to balance our portfolio in the market segments we serve in, and that's where we're going to continue to drive.

John Franzreb - Sidoti & Co.

Okay. Now the Dulles job -- two parts for this question. A; is it included in the back log?

Patrick McDonald

Yes.

John Franzreb - Sidoti & Co.

Okay. And do most transit jobs have a long lead times like that -- that job or was that unusual along delivery time?

Patrick McDonald

No. That's very much consistent with the transit projects. As they go forward, with transit projects there's always -- are you upgrading are you adding rails, are you having (ph) gain right away. And each of those requires an amount of time period. So that's a very normal cycle for transit projects.

John Franzreb - Sidoti & Co.

Okay. So if I kind of backed that out and think about the balance of what I'll call the rest of the business, it certainly suggests there was a significant drop off in the rest of business. Where that order drop off come from?

 

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