Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from John Murphy – BAS-ML.
John Murphy – BAS-ML
[break in audio] . . . we’re looking at as a big guidance range for the revenue decline, which makes a lot of sense and you have given us a pretty big, wide range on the earnings per share expectations that you have for 2009. If you could just highlight the major levers that you may be able to pull, in addition to what you’re doing already, if sales really are coming in at the lower end of the range.
Thomas C. Gallagher
We may have missed the first part of your question, but when you refer to the levers, are you talking about expense levers or revenue levers?
John Murphy – BAS-ML
I apologize. I said in light of the big range on revenue, which I understand, I mean, it makes sense right now, and the big range that we see on EPS, if we were down 8% on revenue, what would be the incremental levers that you would be pulling to cut costs, above and beyond what you’re doing right now? Or is it just intensifying the efforts?
Thomas C. Gallagher
Well, the major things that we are looking at right now obviously would be the headcount. Jerry mentioned we were down 5% in headcount for 2008. We were down an additional 2% in January and will continue to monitor that as we work our way through the quarter. We are also looking at, and have embarked upon, some facility rationalizations and consolidations and those steps are underway.
We have looked at things like outbound transportation, route optimization, which we feel has some potential for us as we dig deeper into this. And we have got a number of initiatives that are either underway or are about to be underway to help bring the cost structure down.
John Murphy – BAS-ML
If we just think about, there in the decline we say towards the end, or in the second half of the quarter, which was pretty severe across the board, was there anything that you could tell whether you were gaining or losing market share in your segments?
Thomas C. Gallagher
No, I wouldn’t say that. I think at this point our sense is that we performed at the market perhaps in Automotive and in Office Products. We may have gained just a little bit of share in Industrial and Electrical. But I think the market just really started to drop pretty dramatically as the quarter progressed.
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