Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Robert Spingarn - Credit Suisse
Robert Spingarn - Credit Suisse
Over the course of the last six or eight months, you’ve reduced revenue guidance three times, I think by about $900 million from $2.8 billion to $1.9 today and then earnings two times. The revenue guidance decreased I calculated about 32%, the earnings about 47%, could you talk about that 32% revenue down tick from a segment perspective what your assumptions are there, where I suspect you’re seeing the heaviest impact in biz jet.
Amin Khoury
Well biz jet is the smallest of our businesses, but there has been a significant decline and I don’t have the quantitative data here to look at the segment revenue reductions from the peak in the middle of last year to the current time. We can do that together but I think that the biggest issue which you pointed out was the more rapid decline in operating earnings as compared to the decline in revenues and that is primarily a function of mix.
Sure there is some negative impact on absorption from reduced volumes in the manufacturing facilities but the principal issue is the reduction in mix and the reduction in the sales of our spares, commercial aircraft segment spares, and our consumables revenues have a disproportionately negative impact on earnings in the company.
And that is the major reason for the difference between the first quarter actual earnings results and the expected somewhat lower earnings on a quarterly basis for the balance of the year. The fact is, that the order rates for those profitable products were lower then the revenue rates. We will take a look at the quarterly decline in revenues and earnings by segment beginning in the second quarter of last year and get back to you with some, a more quantitative answer, I just don’t have that data in front of me right now.
Robert Spingarn - Credit Suisse
Maybe I should take a shot at it a slightly different way, so the $300 million or so decrease in revenue guidance today, just today’s piece, that is if I understand you correctly mostly in the consumables business.
Amin Khoury
Its both commercial aircraft segment and consumables.
Robert Spingarn - Credit Suisse
And then you mentioned order rates, the book to bill in the quarter was 0.9, $475 million in orders, we last saw you and you affirmed your guidance back on February 20, so I’m guessing you booked quite a bit of that, was the first quarter order number front ended, did things fall off a cliff in March and April, is that how we should think about it.
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