Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Ann Duignan with JP Morgan.
Ann Duignan - JP Morgan
Hi, good morning, guys.
Martin Richenhagen
Good morning, Ann.
Ann Duignan - JP Morgan
My question is based on slide nine, where you said that your free cash flow was impacted by customer credit. Could you just explain what that is and what we should look for, going forward, in that category?
Andrew Beck
What happened was we had produced tractors that were just in for certain markets, particularly, Eastern Europe and Central Europe that we did not ship because of lack of credit availability in those markets. So we were effectively holding inventories into the year that we had previously had demand for but chose not to ship or couldn't because of credit issues. Some of that should probably be able to get sold in 2009 and other parts of inventory will work at diverting to other markets as well.
Ann Duignan - JP Morgan
I mean were these products coming out of Germany in particular or were they coming out of North America?
Andrew Beck
It'll be mainly European factories.
Ann Duignan - JP Morgan
Mainly European factories, okay. And then in that context, just as a follow-up, you had noted in December that you'd expect the pricing to be up 4% to 5%. Now you're saying 4%. Can you talk about that a little bit? Is that just a mix change and you're not shipping as much large product to somewhere like Eastern Europe or is pricing coming under pressure right there in the marketplace with the moderating demand?
Martin Richenhagen
I think that's not come under pressure, it's just mix.
Ann Duignan - JP Morgan
Okay. Okay, that's helpful. I'll get back inline. Thanks.
Martin Richenhagen
Ann, you forgot to say that we had a wonderful year 2008.
Ann Duignan - JP Morgan
Well, considering you had said $3 as in earnings for 2008, $4 is like pretty darned good. I'll agree.
Martin Richenhagen
Thank you.
Operator
Your next question comes from the line of Charlie Rentschler with Wall Street Access.
Charlie Rentschler - Wall Street Access
I'd like to say this is certainly no longer Bob Brad list (ph) little fine machinery business, is it?
Martin Richenhagen
Charlie, thank you very much.
Charlie Rentschler - Wall Street Access
I wanted to ask about, if you could tell us any detail on your capital expenditure plans for '09. Are you saying $275 million to $325 million up from $251 million? This would be almost 4% of your estimate sales for '09.
- To read the full transcript on Seeking Alpha, click here »
