Question-and-Answer Session
Operator
(Operator Instructions) We’ll go first to Michael Dudas with Jefferies.
Michael Dudas – Jefferies & Co.
Good afternoon everyone.
Alan Boeckmann
Hello Michael.
Michael Dudas – with Jefferies & Co.
Alan, could you characterize some of the discussions that you had with your clients across the Board and how different are they reacting relative to what maybe investors or the general media is reacting towards the economic slowdown and the expectations of much lower capital investment going forward?
Alan Boeckmann
Yeah Michael I think clearly every client out there and every company in America is being cautious, but is nowhere near the gloom and doom that is being predicted in the general marketplace. Everybody still has companies to run they have plans to maintain; they have capital expenditures that they are committed to and our planning to benefit their business. We seen some slowdown, I had mentioned out we seen some that are waiting a quarter or two get better commodity prices, but if you see the announcements have been made by a number of the oil companies, they are still planning on major capital expansions and so, the gloom and doom that’s out there is a general prediction, we are not seen it specifically in our business we are having, we’ve had some cancellations and delays, but they have not been major and we have had very nice surprises. We counted on almost no LOGCAP work in fact our LOGCAP predictions when we put our plan together we are almost to zero and we’ve had very, very nice infusion there. The government business is picking up additional work and we are tracking some of more significant number of feed projects then we were at this time last year.
Michael Dudas – Jefferies & Co.
What just one follow up, if I could what of the end market that you see, maybe away from energy and oil and gas which market do you think and surprise to the upside relative to new bookings and the ability for Fluor to generate nice returns and maybe if you look at the INI business what’s sliver might be continued to cause some issues relative to new bookings and returns and maybe you can also talk about the U.S. infrastructure opportunity that may present itself for Fluor going forward?
Alan Lee Boeckmann
Sure, I think clearly, I have already mentioned that the unit within Fluor that has the most upside potential right now is our government business I mean in terms of what we had been planning on for 2009. But secondly, I think in our oil and gas and chemicals area, we are still seeing significant strength and potential awards and new awards in our chemicals group and in our upstream business and continue on fairly substantial feed work in the downstream oil side. So I think both those two units still have significant opportunities in front of them. Interestingly enough the unit that you would probably think is going to be the worst hit, the mining industry and I know you covered that Mike so, you appreciate that, we actually have been very fortunate because of our positioning in our client relations to be in a position to take some pretty significant projects yet in 2009. So, even though that business is being hit hard we have good opportunity there and we are capitalizing on it. As for infrastructure, I think all of us were a bit disappointed in what the actual bill presented in infrastructure, its more specific projects that are out in different districts I think the DOTs will eventually get money that I think will then be an opportunity, but we didn’t seen a lot coming out of the – of that bill that helped very specifically on infrastructure opportunities. We actually are seeing at more in the energy side and I think that’s where we’re going to see some more during 2009 that was not expected.
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