Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Richard Skidmore with Goldman Sachs.
Richard Skidmore – Goldman Sachs
Good morning. Thank you. Perhaps you could just elaborate a little bit more on your use of free cash flow between now and the end of the year, and also the free cash flow guidance. It seems like a pretty big step up in the fourth quarter versus what you have been doing over the last couple of quarters. Can you just elaborate on how you expect that you can get to that 460 that you need to get your target?
David Steiner
You know, Richard. (inaudible) on a good conversion ratio of our income from operations and turning it into cash. And we typically in the fourth quarter over the last few years have been between 120% and 130% of converting our income from operations into cash from ops.
And then we just got to be really tight on working capital and on CapEx. We expect it to be a challenge, but we think it is something that is achievable.
Richard Skidmore – Goldman Sachs
And then just on the share repurchase, I thought I understood that the plan was 400 million of share repurchase by year-end ’09, is that still the target, or was I just mistaken?
David Steiner
We are authorized to do 400 million, but you know managing our cash in this kind of an environment is important to us. So we haven't gone in as aggressively as we might. I think we're on pace right now to do 250 million, 300 million shares, probably closer to 250. But if circumstances present a real opportunity, we would certainly increase that. But we do want to continue to look for acquisitions and other opportunities as well.
Richard Skidmore – Goldman Sachs
Thank you.
Operator
(Operator instructions) Your next question comes from the line of Vance Edelson with Morgan Stanley.
Vance Edelson – Morgan Stanley
Hi, thanks a lot. Could you just provide some color around how easy it is to raise prices, how competitive is the environment, are customers very receptive to that and what gives the commercial business particular strength there?
David Steiner
Yes, you know, Vance I wouldn't say that there has been a dramatic change. I mean you would expect there to be a dramatic change, maybe with the -- what the economy has gone through in the last year, but frankly we haven't seen a dramatic change in our ability to continue to raise prices. You know on the commercial side, I think a good portion of it is that we provide certainly the best service in the industry, but also when you are getting a 4.4% price increase on a fairly low base with that average customer being somewhere in the $300 to $500, it doesn't appear as such a large price increase.
- To read the full transcript on Seeking Alpha, click here »
