Question-and-Answer Session
Operator
Certainly sir. (Operator Instructions) Your first question comes from Robert Springarn - Credit Suisse.
Robert Springarn - Credit Suisse
I want to talk a little bit more about the ’09 guidance. If we – if I understood correctly, you don’t have the roughly $0.20 credit built into next year’s number because that goes away. And so maybe the right way to think about this year is to take it out, so you did roughly $3.60 and next year you do roughly $3.80 for about a 5% earnings increase. Is that fair?
Robert D. George
Rob, Bob George here. We did not have any of the benefit of SATI in ’08.
Robert Springarn - Credit Suisse
Right. I took it out, right? So you did about $3.80.
Robert D. George
Right.
Robert Springarn - Credit Suisse
How much is it for the year if we take it out?
Robert D. George
Sorry, Rob, we don’t have any in ’08.
Robert Springarn - Credit Suisse
There was none.
Robert D. George
That’s correct.
Robert Springarn - Credit Suisse
Okay, so you’d be going from a $3.80 number to roughly a $3.80 number.
Robert D. George
Correct.
Robert Springarn - Credit Suisse
Okay. And you’re anticipating 5% revenue growth?
Robert D. George
Right.
Robert Springarn - Credit Suisse
At the same time, you’re going to have a headwind from tax rate.
Robert D. George
Correct.
Robert Springarn - Credit Suisse
So let’s talk about margin. So the crux of the question is, either Bob or Bob could you walk us through the 5%, how we should think about that on the three segments and then what the margins are going to do to get us to the earnings profile that you’re talking about?
Robert D. George
Well, I guess I can start. Basically Rob, as we look at ’09, we’re look – most of our business units are taking a relatively conservative view given the uncertain economic climate and all the bad news. I mean, we just read recently that expectations for aerospace in ’09 are going to be up revenues up 2%. And so we look across the board, we’re looking at a 5% increase and quite frankly it’s about even across the segments. We really don’t have any of them jumping up and we don’t have any going down.
So fundamentally looking at that, we’re then saying that we’re going to retain the gains that we’ve earned in ’08 and fight the battle on the after market and pricing front.
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