Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Hamzah Mazari – Credit Suisse
Hamzah Mazari – Credit Suisse
Just a couple of questions, could you comment a little bit about how much of your business you personally see as early mid or late cycle and in your forecast for 2010, you talk about a slow recovery in the second half, could you touch on which businesses you’re looking to come back faster then others.
Eric Krasnoff
Sure I think we are likely mid cycle for microelectronics from the capital point of view. I think when everyone used those terms of cycle, we’re looking more at capital spend and how it effects us. But because this downturn over the last 12 to 18 months was so severe and cut into base business, I think we’ll see more of a pick up in earlier base, higher margin business in micro e, in industrial manufacturing as well.
But for the significant capital areas, it would be more mid term. Do you want me to comment on 2010.
Hamzah Mazari – Credit Suisse
Sure.
Eric Krasnoff
In those markets as well, I think what we’re saying is that our visibility at this point for those industrial markets is really no better nor worse then the industrial pundits and our customers, so, everyone is saying that they believe at least for microelectronics that its bottoming out and beginning to improve, and we have no evidence to argue with them.
Hamzah Mazari – Credit Suisse
And then just to follow-up, how much of a benefit have you already seen in your business from inventory destocking across your segments and what’s your outlook on that.
Lisa McDermott
Well as we mentioned, we did see a sequential improvement the fourth quarter over the third quarter so while for instance industrial manufacturing and microelectronics were down say year over year, we are starting to see a deceleration and we do believe that that relates to a bottoming of destocking and activity starting to pick up and therefore with inventories at bottom, customers resuming some buying.
Operator
Your next question comes from the line of Brian Drab – William Blair & Company
Brian Drab – William Blair & Company
A question for Lisa, I just want to understand the details around the tax benefits that you had in the fourth quarter, I know that on your adjusted build up here you use a $0.04 number, I was expecting based on your comments at the end of the third quarter, a tax rate of somewhere in the 31% to 32% range, and with the tax rate at 20.6% in the quarter, that looks like closer to an $0.08 benefit to me then a $0.04 benefit and I’m wondering if you could just break down that benefit and step through that calculation.
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