Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Ann Duignan with JPMorgan.
Ann Duignan - JPMorgan
My first question is just around Q4 -- can you talk a little bit about the restructuring costs that you are anticipating in Q4? Can you quantify how much you think you might be spending? And then do you expect restructuring costs to accelerate into 2010 in order to right-size the business?
Michael W. Sutherlin
I will give you some color comments and then Mike can give you some more detail on the numbers but we are trying to stay ahead of the curve. We have a pretty good model and the order rates today are in line with that model. We have seen in the first three quarters of this year, the incoming order rates at reasonably steady levels for those three quarters, so we feel pretty good about the predictability at this point. We are downsizing our business to prepare for 2010 and we are also at the same time making some strategic moves trying to reposition our business to be in a better position during the recovery, so part of this is to get our costs down to the levels we expect for 2010 and part of it is to accelerate some of the strategic items we had in progress but to get those accelerated so we can be better prepared for recovery when we get to that point.
The restructuring costs right now that we are looking at in the fourth quarter are a combination of the two and the strategic items are obviously a little bit more difficult to nail down at this time but I will have Mike give you some more information on some of the number ranges we are looking at.
Michael S. Olsen
Yes, at the end of the second quarter, we had indicated on our discussions with this group that we were looking at about $10 million over the remaining two quarters of the fiscal year. We had just over $4 million in the third quarter and we are looking probably to be a little bit higher than that overall $10 million amount for the final two quarters, so looking at probably slightly above $7 million for the fourth quarter and once again we’ll be monitoring the incoming order rate, be monitoring what is happening in the after market and would anticipate that there would be some additional restructuring costs that would flow over into the beginning of the 2010 fiscal year.
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