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Article Excerpt
OPERATOR: Good day, and welcome to the GenTek fourth-quarter and full-year 2008 earnings conference call. Today's call is being recorded. (Operator Instructions). At this time for opening remarks, I would like to turn the conference over to General Counsel, Mr. Jim Imbriaco. Please go ahead, sir.
JIM IMBRIACO, VP, GENERAL COUNSEL AND SECRETARY, GENTEK INC.: Thank you, and good morning, everyone. Welcome to GenTek's earnings call for the fourth quarter and full year 2008.
Before we proceed with today's call, I would like to read the following statement. Today's earnings call may include forward-looking statements that are subject to risks and uncertainties relating to GenTek's future financial and business performance. Such statements may include estimates of revenue, expenses, and income, as well as other predictive statements or plans dependent upon future events or conditions. These statements represent the Company's estimates and expectations only on the date of this call, and are not intended to give any assurance as to actual future results.
GenTek assumes no obligation to update any forward-looking statements from past or present filings and conference calls. GenTek's actual results could differ materially from those anticipated in any forward-looking statement. Although these statements are based upon assumptions the Company believes to be reasonable, based upon available information, they are subject to risks and uncertainties. We encourage you to review the "Risk Factors" section relating to our operations and the business environment in which we compete contained in our 2008 Form 10-K, which is now on file with the Securities and Exchange Commission for a description of these risks and uncertainties.
This conference call also contains references to non-GAAP financial measures as defined by the Securities and Exchange Commission in Regulation G. The reconciliation of these non-GAAP measures to US GAAP financial measures are included in GenTek's earnings press release for the fourth quarter and full year 2008, which has been furnished to the SEC on Form 8-K and can also be found on both the homepage and the Investor Relations section of the Company's website, www.GenTek-Global.com.
It is now my pleasure to turn the call over to Mr. William Redmond, Jr., President and Chief Executive Officer of GenTek, Inc. Bill?
WILLIAM REDMOND, PRESIDENT AND CEO AND PRESIDENT, GT TECHNOLOGIES, GENTEK INC.: Thanks, Jim. Good morning and welcome to the GenTek fourth-quarter and full-year 2008 earnings call. Joining me from the GenTek senior leadership team along with Jim is Tom Testa, our CFO.
We are pleased to report our fourth-quarter and full-year 2008 results. Despite extraordinarily difficult economic conditions, the performance chemicals segment continued to deliver strong operating results during the quarter. The valve actuation business continues to be impacted by global automotive market conditions.
Driven by expected near-term economic pressures on our businesses, we have taken decisive actions to reduce GenTek's corporate costs and to continue to drive the cost structure of the valve actuation business to more closely align with expected market trends. I will speak in more detail about these businesses and their anticipated impact on our future financial performance later in the call.
Now, onto our earnings for Q4 and full year 2008, which Tom Testa, our CFO, will review.
TOM TESTA, VP AND CFO, GENTEK INC.: Thank you, Bill. Revenue for the fourth quarter was $139 million, an increase of $5 million or 3.9% versus the prior-year period. This increase was driven by revenues in performance chemicals, which increased by $20 million, partly offset by reduced sales in the valve actuation systems segment of $14 million and the corporate and other segment of $1 million.
Revenues in the performance chemicals segment grew by $20 million, driven primarily by higher prices in the water treatment and chemical processing markets. Higher prices were the result of the pass-through of...
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