Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes form Patrick Archambault - Goldman Sachs.
Patrick Archambault - Goldman Sachs
Well congratulations on the good cash flow. I had more of a question just on sequential EBITDA. I just on slide 13, you show a sequential improvement of $5 million versus Q2 and I was wondering, it seems like if you would just took back the revenue improvement and sort of apply that thirty-ish incremental margin that you kind of mentioned and then looked at some of the incremental cost savings that you showed in that chart on slide 8, that it would imply probably maybe more EBITDA sequential improvement than 5.
I think just from the incremental piece you would probably have like 24 and then I guess it’s hard to see what it says exactly on the other slide, because we don’t have the number for the Q2 piece, but it looks like it could be 10 or something like that.
So, just wanted to see what kind of puts and takes went in there if you could walk us through that that would be helpful.
Jose Maria Alapont
Thanks Patrick for the question. 2009 was quite a perfect challenging year to asses, but one thing that is clear is that we are showing a very strong progress quarter over quarter. Now, when you compare second and third quarter, probably it’s one of the first times that you are going to see in the industry, a company like Federal-Mogul performing better on the third quarter than the second. Second quarter is a full quarter, three months of continuous operations.
Third quarter is a quarter where you have two months, July and August that you have occasional shutdowns globally all over the place. Theoretically you should expect lower financial performance because as I said, you are doing all the labor and corporate expenses without having the full three months operating. That is one of the elements, and the fact that despite the shutdowns of the July-August in the industry on the third quarter, we have a stronger performance done on the second quarter. It is very positive.
The other one is on the third quarter is basically the numbers you are saying is very straight performance, you see on the marching and then on the EBITDA and then on the net, in the second quarter if you check back on your notes there were a couple of ones that happened in the company in any given quarter.
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