Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from John Franzreb – Sidoti & Company.
John Franzreb – Sidoti & Company
My first question is regarding the accelerated spending in the R&D line to support some of the programs you would want to use for growth next year. In light of market conditions, is there any plans maybe to scale back that spend? Can you just talk about what you are spending, what your expectations are for next year and maybe also update us on what your CapEx expectations are for 2009?
Vinod M. Khilnani
John, we have continued to look at all of our expenditures and we believe we can lower the expenditures without hurting our future growth prospects we are doing them. In R&D, if there are expenditures which are being incurred to launch specific programs for either the diesel commercial markets which we have won because the sales are going to start in mid-2010 timeframe, or programs which we are working very actively with key customers like Toyotas and Hondas of the world, we are going to continue to incur that to make sure that we have really strong growth in 2010 when those programs will be launched.
Other than that, we are looking at every expense and every category to see if we have room to further improve that. Commenting on your capital expenditures, we are going through that process right now. We believe we will be able to bring our capital expenditures down in 2009 compared to 2008, more in line with what we have done in 2006 and 2007.
John Franzreb – Sidoti & Company
So the R&D takeaway, it's too much to spend based on the visibility of the project and maybe something that you didn’t have lined up you will be scaling back a little bit on that? Is that the right read there, Vinod?
Vinod M. Khilnani
That’s the right read. That's the right read. If you look at, John, we are continuing to be very optimistic about the new business we are winning and increase penetration in the market share. The slowdown we see in fourth quarter and early 2009 is primarily macro economic driven. So we want to keep that in mind and aggressively reduce our costs, but we want to also be mindful that the business which we are winning that we are able to launch those projects successfully in 2010.
- To read the full transcript on Seeking Alpha, click here »
