Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Dan Leonard – First Analysis
Dan Leonard – First Analysis
Presumably the reduction in top line guidance is due to a fall off in business in November that a number of industrial companies reported. Specifically, which of your businesses in the month of November fell most below budget?
Eric Krasnoff
I think it was more in response to the first quarter results which were just 4.3%. As well as what we anticipate will be a slowing for the rest of the year. We’re listening to our customers like Dow announced cut backs in their production so we’re anticipating that. The businesses that we saw mostly affected in the first quarter included Commercial Aerospace, both sides of Microelectronics, the consumer and the semi-conductor side, and the basic industries like mining, pulp and paper, steel production or other types of commodities of that sort and certainly within industrial machinery or mobile equipment types of applications, machine tool.
Operator
Your next question comes from Silke Kueck – JP Morgan
Silke Kueck – JP Morgan
Can you talk about how much price you achieved for the quarter and how much price you think you’ll achieve this year in very broad terms?
Lisa McDermott
In the quarter we achieved about 70 basis points of pricing increase and for the year we’re estimating about 1%.
Eric Krasnoff
The pricing excellence program that we began in August we’re expecting to start kicking in in earnest by the end of this fiscal year, in the final quarter of this year. It is progressing well.
Silke Kueck – JP Morgan
Can you talk about how sustainable is the growth that you’ve seen in US Military sales, is that something that will continue for the year or also something that could see some slowing.
Eric Krasnoff
One of the markets where we have the greatest visibility and we see the year continuing to be very strong.
Silke Kueck – JP Morgan
In terms of commercial aerospace sales what was the change in sales in the quarter?
Eric Krasnoff
Down 7%.
Operator
Your next question comes from Brian Drab – William Blair
Brian Drab – William Blair
I wanted to start by asking some questions on gross margin, I think gross margin was well ahead of most analysts’ expectations and it sounds like you haven’t taken any really reactive measures to cut costs and all of its coming from previous contemplated initiatives. I’m wondering if you could tell us which initiatives have been most successful or is it really broad based? Secondly, are you planning to take some new initiatives given the dramatic downturn in the economy?
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