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FARO Technologies CEO Jay Freeland discusses the state of international business and why he believes in a manufacturing comeback in the U.S.
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Technologies might not be a household name in your home but its client list is pretty much a who's who of global manufacturing.
From international aerospace and it's like Boeing and Lockheed Martin to American auto industry like Lear.
The company recently delivered a 24%.
Spike in first quarter sales and it's betting big on -- manufacturing comeback.
Here in the US of all places.
Jay Friedland is the CEO and president and he's joining us now -- -- Fox Business exclusive from Orlando Florida.
3-D imaging technology that.
Helps big companies test their own products and equipment.
But also because what do you make is made here in the United States now let's get your numbers first a nice move for your profits this most recent quarter.
To what do you attribute that where's the real growth coming -- Yes at thanks -- we had a really good growth around the world particularly the Americas grew at 29%.
And you had high twenties growth fund of sales line both in Europe and Asia as well.
I am what we see is that we've got markets in all of the major countries in those locations.
Performing particularly well and it really is across all verticals in the manufacturing sector.
And so that's driving both the sales growth as well as driving our own efficiency inside the operation.
To drive that earnings growth to the some.
For school yeah OK so tell me about say for example in Europe because needless to say you just heard that Spain got downgraded again by Egan Jones which is ratings agency.
Of -- you don't see any slowdown there or is there pressure at least that you're concerned about how do you want maneuver around that.
Yet we're certainly seeing a little bit of pressure and he saw a little bit of that on -- orders line in the first quarter.
With the pressure comes from not so much that we sell into Spain southern Italy or Greece we saw a little bit there.
We do so a lot into Germany France and UK and so as they watch the economic situation unfold.
That hasn't changed their plans necessarily -- -- we slowed the decision process lol but and so we're seeing a little bit of pressure from not right now.
What do you think it comes back.
I know that's that's a full on crystal ball for instance are.
Sorry but that meeting -- We have currencies up on up on the screen and needless to say you know the 62%.
Of your business.
Is done in currencies other than the US dollar so I'm sure hedging -- opinion nightmare.
You know its interest -- we do not have any active hedging programs.
We have a little bit of head winter -- -- -- the sales line depending on what's going on with the currency.
Obviously we're watching the -- quite closely right now.
But the rest of our operational costs in those regions are based in the local currencies we have a pretty natural operational hedge and so that -- -- to control of forests quite a bit.
Look I think there are really -- easy to come -- sorry 'cause we've got the Euro yeah sure dollar 2480.
Wanna.
That you also do Asia business so it's it's not really to fair comparison to jump in there but how his -- -- Eurasia region business doing.
-- Asia region business is great we've seen nice recovery in Japan and Thailand after the events of last year.
China and India are also very very strong even China we had a lot of questions from the analysts about GDP growth and is that cause many issue force and reality is.
Look there -- grow and you know they're going a 160 miles an hour before now they're going 150 miles an hour.
The -- on the left plane passing everybody and we see that -- mailed customers that you sell to that.
The bumps in the road for them in terms of GDP slowing down a little bit not affected their their business really.
Okay -- -- for years everyone was talking about outsourcing business to China and now you start hearing the word.
Re sourcing.
People bringing back jobs but you never left your manufacturing is in the United States to expect to beef that up.
We do we've continued to beefing up as the products -- -- that the actual products and portfolio grown as well as the sales growth has as well.
That we have a very efficient manufacturing operation we have spots in Florida and Pennsylvania that produced the bulk of our products that we sell.
They've got great distribution channels to go through and we are seeing -- other customers to is that you know they are looking to bring back the work into the United States and and tools like ours do provide a a significant level of efficiency for them.
In the operation and -- certainly helps that process when they consider bringing work closer back home.
You know it's it's a -- during certain circles to to beat up the administration and say that they're not business friendly although one of the things that they have done over the past couple of years is give tax breaks if you're doing capital expenditures here in the United States.
Have you participated in that have you taken advantage of that opportunity.
-- its interest -- we happens and we actually haven't seen too many of our customers doing that.
At least as it relates to our products one of the nice things -- that we are capex but were relatively low price everything tends to be on under a 100000 dollars.
And so -- see a little bit of impact from the but not as much as you see say with heavy machinery the heavy machine tools things like that last question are you hiring.
We are hiring we've been increase in the workforce of the last couple of years -- come out the downturn.
We continue to hire again this year we're always looking for great engineers and great sales people in particular.
Engineers and sales all right thank you -- nice to see you.
Thanks very much thanks for having me.
CEO and president and I know you guys saw that five year tenure chart.
Stock's done really well through tough times so we like to bring you these stories they're important although they might not be those how.
