Question-and-Answer Session
Operator
(Operator Instructions)
We will go first to Ingrid Aja at Merrill Lynch.
Ingrid Aja - Merrill Lynch
I was just trying to get a better understanding, if your EPS comes in at the low end at the range this quarter at $0.32 maybe you can give me a little more understanding how you get to $1.80 for the year?
Gordon Hunter
Well, as we said, Ingrid, we have a bit of a back end load of plan this year due to both the sales ramp up and the kind of the shape of the cost savings versus the transfer cost. What we see is typically, we would have sales kind of peaking out in the second and third quarter and that really is the case this year, but we have a steeper ramp up than our normal seasonal pattern in sales because of the new product introductions that we are doing both in the electronics and automotive. It tends to be a little bit more backend load as the normal and then in addition to that, the cost savings for some of the big transfer programs begin to show up in the back half of the year. Those would be for Ireland and then a couple of smaller programs that we have like to move out of the old Whitman Don Juan plant to the Philippines, those savings are both backend loaded, so it is a combination between a somewhat stronger back half for sales and better cost savings in the second half of the year. We should see pretty substantial margin improvements as we get into Q3 and even a better than normal Q4 from a margin perspective.
Ingrid Aja - Merrill Lynch
And then, I guess on your revenue assumptions, you brought them down slightly from 6 to 8 to 5 to 7, and I was just wondering what drove that change and maybe what is the biggest risks in the end market?
Gordon Hunter
I mean, I think we are a little bit cautious in the kind of the overall outlook for the macro economy, number one and particularly as it relates to our electronics business. We are still confident of growth this year and we turn to a growth position in the fourth quarter, but we are still being a little cautious. I think the overall macroeconomic outlook is probably a little less positive than it was when we gave our earlier guidance so we really have not backed off significantly on that, but we have tweaked it down a little bit.
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