CSL
#Yes, I think Matt, right now, we expect it to hold up certainly through the third quarter.
We get to the fourth quarter, then I think all bets are off.
As volumes start to drop, I'm not sure what will happen with pricing, at that point.
But we think it'll carry us through the third quarter at least.
Yes, I would think so.
It really isn't our record.
I think we were 21% back four or five years ago for a quarter.
We have some big projects that are working that will come to fruition in the second quarter.
Or, I'm sorry, in the second half, not the second quarter.
We didn't have any of those large projects in the first half of the year.
Thanks <UNK>.
Yes, <UNK>, it was almost all in Construction Materials.
Last year I think we took inventory down too low.
And we had two objectives this year, not to have any outages, and I think the business did a great job in preparing in the first and early second quarters, to make sure that we had inventory available.
We've had ongoing conversations within the Company that, is 15% operating or working capital the right number.
And I think that it might be a little bit low.
We might be looking at 17% or 18% long-term; appears to be the optimum level for us to be able to deliver when we need to deliver and not lose any orders because of inventory outages.
And that would be generally across the company.
Well last time we spoke, we were just going off the forecasted spend from our divisions.
And they're just coming in across the board a little bit lower than we had anticipated at the time of our last call, and that's just our updated number.
There's nothing really more to it than that, and I think $80 million to $90 million is a good number for the for the year.
I think there will be efficiencies, in fact, if you look at the margin we generated in the second quarter was the result of some of those efficiencies we got out of Nogales.
We're in one plant rather than four smaller plants, so that's helped us.
It's just been, I guess, a stroke of luck that we brought it on just as volumes ramped up again.
And we would expect that margins would improve as we go through the year.
All right <UNK>.
Well, if you look at the business, keep in mind that ag is down 27%.
It was only off a few percentage points, I think earlier this year, and late last year.
So ag is at a major down turn for us.
And mining, frankly, mining is, <UNK> ---+ was it 15% of total revenue somewhere in that range.
Mining, while it is obviously important to us it is not the biggest segment.
Our biggest segments are ag and construction.
But mining is not doing well.
We don't see anything that would indicate equipment's coming out, it's just that no new equipment's being bought.
And it would tell you that equipment is not being used because not a lot of parts are being bought for the after market.
So I think equipment they have there is not being other utilized like it had been in the past.
Revenue.
Oh we, oh incremental margins.
In the 30%s, mid-30%s I would think, yes.
Yes, I think if you look at the businesses that are generating that, I would see no reason that it shouldn't be.
Well we could certainly do better but there is a significant penalty to prepay.
There is call protection in the public bonds.
We've looked at this.
And when we do the calculations, we don't see a real benefit once you take into account the up front penalty you've got to pay to cover the protection.
You're welcome.
It certainly has helped us from a freight standpoint.
We were shipping TPO to the northeast from Tooele, Utah and Senatobia, Mississippi.
We now have an operation that's only a couple of hours from New York City.
So, it certainly has helped from a freight standpoint.
Also from a delivery.
You now have a situation where you can react more quickly to the needs of the customers up in the northeast that want TPO.
So it's been a real advantage in having that facility there.
<UNK>, not really.
We talked about earlier on in the call with the wetness in Texas early on in the quarter.
But as soon as it dried out we immediately had roofers on roofs and I don't think there is any pent-up demand in Texas because of the wetness.
But that's the only thing.
Thank you.
Thank you.
As we prepare to end the call, I ask you turn to slide 15.
As we began the third quarter, our outlook remained very positive and continues to be very positive.
CCM, CIT, CFT, and CFS have very favorable market conditions going into the second half of the year.
Looking at it by segment, CCM should continue to benefit from strong new non-res construction, a healthy re-roofing market, and lower raw material costs.
Sales should grow mid-to-high single digits and earnings are expected to be highly leveraged in the second half of the year.
Barring any major change in pricing, earnings growth will be reflected in the third and fourth quarter results.
While we had some downward pressure on pricing in the first half, but it was minor.
It had really very little impact on our overall performance in the year.
With the second and first quarters behind us, all indications are that 2015 is going to be a record year at CCM.
At CIT, the second half of the year performance should improve, upon our performance in the first half.
Our Nogales plant is up and running and our aerospace and medical markets continue to be strong.
We're making operational improvements at LHi, and while they are slightly up from 2015 margins, we expect that the impact, really, is going to occur in 2016 and 2017 at LHi.
2015 should be a record year for CIT though.
Sales at Fluid Technologies are expected to grow mid-single digits in the third and fourth quarters.
Unfortunately most of that growth will likely be offset by FX.
In the second half of the year revenue should be approximately $150 million with EBIT earnings in the low teens.
CFT will be contributing to our earnings during the second half of the year as the purchase accounting adjustments are now behind us.
CBF markets will continue to be in the depths of a 4-year recession and will show little life in the back half of the year.
During our first quarter conference call I projected that CBF's revenue would be flat for the year.
I now think that was too optimistic.
We should see sales declines in the second half of the year, similar to what we saw in the first half.
We also seasonally manufacture a product mix in the first half that has favorable margins, compared to the products we manufacture in the second half of the year.
With declining revenues, and less profitable mix, margins should be in the mid single digit range in the third and fourth quarters.
At FoodService we expect to see low single digits revenue growth in the second half with profitability commensurate with the revenue growth.
Sales and profits for the full year should be approximate of 2014.
Corporate expenses will be approximately $58 million for the full year.
DNA will be approximately $131 million and CapEx will be between $80 million and $90 million.
Free cash flow conversion will be approximately 100%, interest expense approximately $34 million, and the planned tax rates should be between 32% and 33%.
We've had record earnings in the first half of the year and frankly, we think this is a good projection for the second half of the year.
We think 2015 is going to be a very good year for us.
That brings the call to a close.
I want to thank you for attending our second quarter 2015 conference call, and look forward to reviewing our third quarter performance with you in October.
