Question-and-Answer Session
Albert J. Neupaver
Jamie, you want to poll for questions?
Operator
(Operator Instructions). And our first question comes from Arthur Hatfield from Morgan, Keegan.
Arthur Hatfield – Morgan, Keegan
Good morning guys.
Albert J. Neupaver
Hi, Art.
Alvaro Garcia-Tunon
Hi, Art.
Arthur Hatfield – Morgan, Keegan
Hey, Al, I missed something when you were talking about the freight car statistics. I missed what your comment was with regards to your expectations for delivery this year.
Albert J. Neupaver
This year, we think they're going to be rate around the 20,000 deliveries are probably going to slip further for the 4,000 that we had in the third quarter. So if you look at what's already been delivered this year, you've got, what 17,000 so it will be above 20 but not that far above it.
Arthur Hatfield – Morgan, Keegan
And then you had followed that up by saying you expected it to be about half that next year, did I hear you right?
Albert J. Neupaver
That’s correct, Art.
Arthur Hatfield – Morgan, Keegan
Okay. Secondly, can you talk about any significant contracts on the transit side that may roll-off in the next couple of years and kind of what you are seeing is opportunities to replace those?
Albert J. Neupaver
Yes, sure, Art. One large contract that will finish up in 2010, we are supplying the last set of options on the R-160 program, which is a New York city Transit, that total project was about $250 million and we shipped less than the third of that during 2009 and we’ll continue to ship well into 2010, but that project will come to completion. However, we have municipalities outside of New York that are major transit car orders that are in the queue here. BART in California, there's a number of them that we feel there is ample activity in the transit car area where we think that the transit cars delivered in 2010 will be very close to what was delivered in 2009.
Arthur Hatfield – Morgan, Keegan
Okay. And then finally on the margins in the quarter, that was helpful Alvaro, what you had commented there on the decremental margin. Can you talk about what that would have been had you not been able to put in place the cost saving initiatives that you had, and how we can think about that level of degradation in the margin going forward relative to potential revenue decline?
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