Question-and-Answer Session
Operator
Thank you. (Operator instructions) Your first question comes from the line of Eli Lustgarten of Longbow Securities.
Eli Lustgarten - Longbow Securities
Good morning, everyone.
Carlos Cardoso
Hi, Eli. How are you doing?
Eli Lustgarten - Longbow Securities
Good. I have a couple of housekeeping I wanted to make sure of. Frank, did you say the tax rate for the year will be 20 to 21? Because you said 21 to 21 and I said (inaudible) heard that. The tax rate for the year will be around 20 to 21?
Frank Simpkins
That’s correct.
Eli Lustgarten - Longbow Securities
Okay. And, with the 25% in the third quarter, are you talking about a similar rate in the fourth quarter? Is that what we’re assuming at this point?
Frank Simpkins
No, it would come down to a little bit lower, maybe around 22 in the fourth quarter, and it’s related to some of the charges that we have to take in Europe that we don't get a significant tax break given our structure there.
Eli Lustgarten - Longbow Securities
And, does this hold into next year or—I know you don't like those—but we are at a moving pass in 09, so—
Frank Simpkins
Yeah, I think it’s a little premature to get into that. And, I think we’ve set our long-term goal over the horizon is to get a sustainable tax rate in the low 20’s.
Eli Lustgarten - Longbow Securities
So, that’d be the same. The corporate charges are going to run in the 16 million quarterly rate? Is that the new annual rate, quarterly rate for a while?
Frank Simpkins
Well, I mean, as you saw in the corporate operating segment, we had 4 million. I would say it could be a little bit higher. It could be that anywhere from 18 to 20 million, but I would expect to be in the lower part of that at this month.
Eli Lustgarten - Eli-Longbow Research
And if interest charges drop, how far down will they go from $8 million?
Frank Simpkins
I mean, I'm looking at it in net net interest income. It'll probably go down a little over a million dollars sequentially.
Eli Lustgarten - Eli-Longbow Research
Okay. Now when you talk about demand, I mean even at the very dire third quarter organic drop in the 20s, what are you assuming the fourth quarter rebounds a bit to a mid-teens drop or something like that, or is that?
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