Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Edward Marshall - Sidoti & Company.
Edward Marshall - Sidoti & Company
You mentioned that you were looking to streamline the operations or that you are looking at that with a focus. As we enter a tougher environment here, what are you doing to streamline the operations?
William M. Lambert
I mentioned that we were prudently looking at operating expenses and reducing operating expenses. And so we have initiated, already, certain firing policies and restrictions on hiring, of adding new headcount. We have other programs that we are looking at to reduce headcount in certain areas that we feel are appropriate to do so. And just really watching the capital outlays for the company as we look at this uncertain time.
You know, we are in an interesting period here and it is very difficult for us, and I think many others in the industrial environment, to predict right now what the outlook is because as I mentioned in my comments, we did not see a drop-off in business during the third quarter. And as I also mentioned, our incoming order book in the third quarter also remained healthy.
And so while we are very much aware of the economic environment that is going on and the talk of recession, we did not see it in the third quarter and so we are aligning ourselves and our activities in such a way that gives us maximum flexibility here.
I hope that provides some clarity to you. I don’t think it is appropriate for us at this point and time to have drastic cutbacks. While there might be certain planning of certain activities that need to take place or would need to take place in the coming year, I think it’s inappropriate at this point and time, with where we see our business right now, to move forward or implement any of those kinds of activities. And so that’s why we are doing just as I indicated to you earlier.
Edward Marshall - Sidoti & Company
Is it too early to address which segments we would see these additional cuts?
William M. Lambert
I think that we have talked in the past in other conference calls about the military aspects of our business in the U.S. Military business, as I indicated in my comments to you, we will complete shipment of the U.S. Air Force SCBA contract this year. If there is any carry-over into 2009 I expect that to be fairly small. But we will see, likely, a decrease in our U.S. military business in 2009.
- To read the full transcript on Seeking Alpha, click here »
