Question-and-Answer Session
Operator
(Operator instructions) We’ll take our first question from Antonio Antezano with Macquarie Capital.
Antonio Antezano – Macquarie Capital
Good morning. I was wondering, in your guidance, you throw light, what do you expect for the next three quarters and nineteen days is mentioned a lot, Q2 is still being difficulty, although you make a sequential improvement and probably a stronger recording in the second half. So I was wondering, what are your, micro-assumptions for that expectation or whether it’s more bottom half based on the order flow you see and that you expect for the second half of the year?
Norman Johnson
I’ll address on how we do our forecast, we do a bottom up. We get submissions from all of our operating companies based on how they see the economy and then we look at probably more of macro assumptions here at the corporate level before we provide the final earnings guidance. As we said, the sales in the remaining of the year, the second half will be better than they are and the – let me start over again. The sales in the second half of the year will be better than the first half, but the second quarter should be better than the first quarter.
Antonio Antezano – Macquarie Capital
All right. And so when we focus our attention on the second half, what businesses or I would say, market do you expect to be the strongest for the second half of the year?
Norman Johnson
Well, what we expect for the balance of the year, as I’ve said before, that our engine mobile business was down 16% in the first quarter, that certainly we do not see that trend continuing. As they said, we expect our engine mobile business to be down 68% for the balance of the year with being more down in the second quarter than the second half. We also expect significant improvements to date of, hopefully, I said, from our CLC Air HVAC business that will lead the way to the second half. Plus, sales in the after market for our natural gas business, as we are more aggressive in the replacement business versus the first (inaudible) business.
Antonio Antezano – Macquarie Capital
All right. And then final question on your cost reduction initiative, how should we think about the savings being generated over the next three quarters? Is it more back loaded or we should see that starting in Q2?
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