Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Kevin Maczka - BB&T Capital Markets
Kevin Maczka - BB&T Capital Markets
I wanted to start first with the guidance, you gave an EPS guidance and I’m hoping you can give us more color about how you get there because it sounds like from your comments obviously with the economy and foreign exchange rates there are things that could cause that view to change as we go through time, but can you drill down maybe into the business units and talk about how we get to that guidance and maybe what a scenario would be that would cause you to either miss or exceed that guidance.
Peter Wallace
I’d say across all the various business units we’re still forecasting some positive real growth. We factor in price, price generally used to go ahead and counter any kind of inflationary costs which we both know are bouncing around right now. We’re seeing a little bit of a pullback in some of the commodities which might actually help us in some of our cost structure as we go forward.
But we are showing growth in each one of the business segments. We also are anticipating to pull back and ship some of the backlog that we’ve got in our business units now. So we’re forecasting sales to be a little bit stronger then orders as we get into this next fiscal year.
When you take a look at the various groups, energy continues to be very strong. Those that have been watching the price of oil is down at $90 the other day, and this morning it started up with a pull back once again around the $80 level. All of that can certainly have an impact on some of the drilling contractors and what kind of expenditures they’re planning to put in place.
Up to this point in time we’ve been spared from any kind of a pullback due to the nature of our product line. We’re generally involved with drilling rigs but more specifically involved with directional and horizontal drilling activities as it relates to some of the more difficult to find oil and gas recoveries.
So all of that continues to look very encouraging for us as seen by the very strong quarter increase on a year-over-year basis for the fluid management group. When we take a look at the other sector, I’d say the mixing portion of our process solutions group continues to look very encouraging. Order rates have been strong. We’re still forecasting some pretty good growth in there.
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