Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Scott Hamann - Keybanc Capital Markets.
Scott Hamann - Keybanc Capital Markets
On the cost reduction plan, what is the timing that you have in mind? Is this also a base year, this past year, and what are the costs to achieve on those initiatives?
David W. Johnson
The timing on the cost reductions will be throughout the year. Most of those have been put in place already so I think we can expect to see those cost reductions over the full amount of the year.
I think importantly to realize is we went into the year with our plan of about a $15.0 million cost reduction to offset input costs as we went into our planning season so obviously as input costs change there could be some changes in those savings, but the input costs were contemplated when commodity costs were really high. So I feel pretty good about the fact that we can achieve some level of economics on this.
Scott Hamann - Keybanc Capital Markets
So the $20.0 million is expected for fiscal year 2009?
David W. Johnson
Yes.
Scott Hamann - Keybanc Capital Markets
The currency benefit that you had in 2008, either in sales or operating income?
David W. Johnson
On the sales line it was about a 5% benefit and on the operating profit there was a negligible effect. We got some translation benefit but that was offset by transactional profit loss in U.S. and Asia.
Scott Hamann - Keybanc Capital Markets
In terms of what you are seeing with the retailers and their inventory and what their comfort level is in taking new inventory, what are you seeing right now?
Helen P. Johnson-Leipold
We have been constantly in touch with our guys and our sales force and it is kind of mixed. You have to talk about it by business units, but we are getting pretty good orders in. We do think their inventory level is low because they were very conservative last year so there is an opportunity to get some product in. We are getting the orders but this is only our first quarter and our peak season comes into next fiscal so we will get a much better indication going forward, but so far there is an optimistic outlook.
Scott Hamann - Keybanc Capital Markets
Based on what you are seeing right now, do you think that you can be profitable in 2009?
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