Question-and-Answer Session
Operator
(Operator instructions) We will take our first question from Derik De Bruin from UBS.
Garry Rogerson
Hi, Derik. Anyone in? Hi, Derik.
Derik De Bruin
Hi, I’m here.
Garry Rogerson
We are here; you can ask your questions.
Derik De Bruin
Okay very good. Sorry, I am trying to do this remotely through my office; I’m down at (inaudible). I didn’t get into the full part of your call guys, and my apologies on that, but do you – I mean how much – you expect the off margin to hold in for the year or just how much deterioration do you anticipate?
Ed McClammy
I think that there is a good channel, we gave a broad range on revenues, and obviously it depends on where we are within that range.
Derik De Bruin
Right.
Ed McClammy
But I think that there is good change that if we are at the low end of that revenue decrease that we can actually still have a chance of showing margin expansion year-over-year. And that even if with the low end, we think with the things that I laid out between the efficiency improvements, the currency impact and the cost reduction actions that we have taken recently that we should be able to maintain it at or close to where it was once a year ago.
Derik De Bruin
Okay, it’s helpful. I guess, Garry I said I missed the first part of your comments so – I guess when we had the launch in November versus were you are popping today, I mean what – I guess what was the biggest single – did things just deteriorate that rapidly, people just hold orders that fast, do get any – ?
Garry Rogerson
Yes absolutely. When we spoke in November, and actually I spoke at the beginning of December as well, so we were recently confident that the order stream was regarded as normal. What we saw was a dip in December and the dip in December was that we have to split in two. One was because the shut downs were longer and so that’s one effect and the other was there was a significant freezing in capital expenditure by large multi-nationals. In fact as I go around and speak to the sales forces, it is the large multi-nationals that were stopping by not the smaller companies. It seemed to all happen in December. Now, coming back, what you see – the reality is, if you look at portfolio it is a product relating to energy and the heavy industrial products have taken a hit. So, if you look at the products and you can count it in different way, you can say it’s Russia. It’s Russia because that’s an oil country and the dollars they were spending on building up the infrastructure is now not there to build the infrastructure. So, the reality is – so it’s heavy industrial accounts. It’s the old energy related accounts that has really affected everything.
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