Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from David Leiker.
Analyst for David Leiker - Robert W. Baird & Co.
This is Keith Schicker on the line for Dave. Chad, I think we can probably back into this number from the information you provided but can you offer a gross profit number for the quarter ex items that you haven’t quite determined?
Chad M. Utrup
$13.1 million.
Analyst for David Leiker - Robert W. Baird & Co.
Okay, that’s great and if we look at the restructuring program that you guys announced, can we assume that it contemplates... when you’re talking you may need to take additional action, can we assume that will be needed if we’re below 130 to 150 in the Class Eight and Global Construction is worse than the numbers you provided?
Chad M. Utrup
Yes, that’s right.
Analyst for David Leiker - Robert W. Baird & Co.
When did the savings reach the $10 million annualized run rate?
Chad M. Utrup
It’s pretty close. We’re taking all those actions here in the first quarter so we’ll be substantially complete. Of the $10 million, obviously we have some costs with that which we mentioned so for ’09 it’s probably in the $7 million to $8 million range year-over-year.
Analyst for David Leiker - Robert W. Baird & Co.
And the $2.5 million, is that all cash?
Chad M. Utrup
Yes it is.
Analyst for David Leiker - Robert W. Baird & Co.
Is that net of any proceeds from the sale of the land and the facilities that you’re going to be closing?
Chad M. Utrup
They’re all primariliy leases so there won’t be any of that activity for this.
Analyst for David Leiker - Robert W. Baird & Co.
Okay. Are the savings primarily concentrated in SG&A or gross profit?
Chad M. Utrup
It’s throughout. The salaried workforce reduction is both in SG&A as well as in our operations.
Analyst for David Leiker - Robert W. Baird & Co.
Is it maybe 50-50?
Chad M. Utrup
I don’t have a split for you. It impacts both.
Analyst for David Leiker - Robert W. Baird & Co.
Then if we look at D&A roughly about $20 million this year. Is that number going to be lower next year, is that a safe assumption to make?
Chad M. Utrup
D&A this year was $19 million or so. Our CapEx is something we’ll definitely be taking a look at for next year so probably something similar or maybe a little bit higher as really depends what may roll off but I wouldn’t expect a substantial change.
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