Question-and-Answer Session
[Operator Instructions]. Your first question comes from the line of Laurence Alexander with Jefferies. Please proceed.
Laurence Alexander - Jefferies & Co.
Good morning.
James J. O'Brien - Chairman of the Board, Chief Executive Officer
Good morning, Lawrence.
Laurence Alexander - Jefferies & Co.
I guess first of all on the water business, can you give a little bit more granularity on the sequential headwind that will be faced in Q4?
James J. O'Brien - Chairman of the Board, Chief Executive Officer
As we look at the fourth quarter, the primary focus has been on the pricing model. Again the prices into our customers and look at the segmentation so that we can get as much price as possible. So, we will continue to work that particular issue. As far as the redesign we will continue to execute the decisions that have been made around staffing the size of the business organization. All of that will hopefully be fairly complete through the quarter, and I do not want much to spill over into the new fiscal year that will start on October the 1st. So the headwinds as you saw in the business, the business is doing very well on their volumes, they are executing well at the customer sites, so I think the biggest challenge the business has is doing their pricing. I think they have a good process now and they have good visibility and the achievement of that and the management is taking control of that situation so that they can measure it and monitor and assure that we are getting that.
Laurence Alexander - Jefferies & Co.
And, I guess secondly with respect to Hercules assets, I think at the last conference call you discussed the core assets, but what's your view on the JV, the particularly fiber visions?
James J. O'Brien - Chairman of the Board, Chief Executive Officer
The fiber vision JV had its purpose and they are trying to achieve a certain result and I would... my discussions with Craig, I would support what they have done, and I would support their strategy going forward on how to resolve that.
Laurence Alexander - Jefferies & Co.
Okay. So there is no change in terms of the longer-term objectives?
James J. O'Brien - Chairman of the Board, Chief Executive Officer
No.
Laurence Alexander - Jefferies & Co.
Okay. And finally on distribution you've given the environment that we are in now what's... how aggressively do you think you can drive margin expansion in 2009, 2010?
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