Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Tony Cristello with BB&T Capital Markets.
Tony Cristello - BB&T Capital Markets
Thank you. Good morning, gentlemen.
Tom Gallagher
Good morning, Tony.
Jerry Nix
Good morning, Tony.
Tony Cristello - BB&T Capital Markets
I guess, one question given the environment that we are in right now, you have been working a lot on the cost side of things for the last year, even longer and always tried to maintain a lean operating infrastructure, and I am just wondering with level of sales now, are you positioned to continue to take even more out on a cost basis? Or do you run the risk of being perhaps too thin to sort of sustain levels of growth that you might need once the operating environment improves?
Tom Gallagher
Tony, I don't think we run the risk of being too thin, that’s an area that we are very sensitive to. We would not reduce cost of the expense of revenue growth, but I do think that we have opportunity to further refine some of the cost structures we have in the businesses. And as we said in our closing comments, we think that we can continue to look for margin improvement as well as EPS improvement in 2008 at the level of sales that we’ve described across each of the businesses.
Jerry Nix
Tony, I would also point out that our CapEx numbers have been up the last two to three years and the reason for that is productivity enhancement and investments in the IT side of our business that aid us and getting our cost down without affecting the service. It actually improves the service to our customer.
Tony Cristello - BB&T Capital Markets
Have you started to receive the benefit side of the capital spend yet on those processes or is this something that may take quarter, two quarters, six quarters to finally get through where you are at the level of meeting of more than offsetting the investment?
Tom Gallagher
I think we are seeing some of the benefit from some of the initiatives that were put in place last year and the year before. I think that's evidenced by the 10 basis points improvement in operating margin and automotive as well as industrial, 150 in the electrical electronic. So, I think we are seeing the benefit and we get projects that will pay further dividends to us in 2008.
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