Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Robert Cornell – Barclay’s Capital
Robert Cornell – Barclay’s Capital
You gave the fourth quarter guidance and earnings but not the core growth comment, what is the core growth contribution in the fourth quarter that drives the fourth quarter earnings you mentioned?
Larry Culp
I think if you look across the portfolio and the way we finished the third quarter we’re actually continuing to see a good level of strength across many of the businesses. But as we look to the fourth quarter clearly we’ve got a rather tempered outlook in light of the headlines and the concerns about the macro economy. I think right now when we look at the fourth quarter we think core will be positive but at a rate below the 4% year-to-date number that we’ve registered.
If you take a quick run through the segments I think instrumentation will be up low to mid single-digits, we would expect T & M and water to continue to set the pace. I think we’ll see some softness at Gilbarco again because of the soft dispenser demand. Obviously with prices at the pump coming down that means margins are good, maybe there’s a little bit of year end money there, we’ll see.
At med tech I think we’re probably in the same range there, low to mid. We just had a few weeks back we were over in Europe with a number of the businesses for their strategic reviews. I feel very good about the share take at Leica, at Radiometer, I think we’re also very pleased with where Sybron is. Obviously work to do at KaVo. I’d say at KaVo clearly the 179 tax incentive is a bit of a wildcard here in the fourth quarter, we’ll see how that plays out.
And keep in mind I think with instrumentation and med tech we’re talking about two-thirds of Danaher today. Industrial tech is probably pretty much inline; maybe slightly below where they were in the third quarter, call that low singles. And I think tools will be down probably low singles again, largely because of the retail softness and what may come in that regard.
Robert Cornell – Barclay’s Capital
When did you start putting together the $75 million plan and maybe give a little more detail, it sounds like a lot but then in the environment we’re in, its sort of understandable so maybe flush out how you evolved the $75 million restructuring plan and how much it might benefit 2009 and 2010?
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