Question-and-Answer Session
Operator
Thank you, sir. The question and answer session will be conducted electronically. (Operator Instructions) We’ll go first to Gary Liebowitz with Wachovia.
Gary Liebowitz - Wachovia
Good morning Joe and Joel.
Joe Caldarelli
Good morning Gary.
Gary Liebowski - Wachovia Capital Markets
Joe, you didn’t give too much on the ’09 outlook but on a sequential basis or a quarterly should the sales pattern follow historical patterns? Or because of the uncertainty you’re not even willing - you can’t affirm that historical pattern?
Joe Caldarelli
Yeah, I think if we look at - we do it - a certainly detailed internal forecast and you know, talk to our customers and so on the basis of the forecasts as best we’re able to see right now, we would expect actually to have sequential improvement in sales each quarter this year.
So the background work should be there. You know the caution, as I mentioned, is that things are changing mighty quickly so one never knows but on the base of all the information we have today, we would expect sequential improvements in sales during the year.
Gary Liebowski - Wachovia Capital Markets
Okay and you just mentioned that you expect to generate at least $20 million of free cash flow annually. I mean that would suggest some pretty good working capital improvements. Where are the biggest opportunities there? Is it inventory or receivables or where do you see that?
Joe Caldarelli
Well, we’ll just continue on to be prudent as we have been. We don’t have particularly bloated inventories or receivables but we believe that with aggressive management of both we can continue to watch those carefully and make sure that they come down consistent with the current business levels in that we don’t let our customers abuse us on receivables, you know?
So we don’t have to do anything dramatic. We just have to make sure that we stay on top of both of those.
Gary Liebowski - Wachovia Capital Markets
Just one last one back to the ’09 outlook. You know you didn’t give us sales guidance but is it fair to assume that sales decline in ’09 should look on a percent basis should be at least consistent with the headcount reduction that you’ve announced?
Joe Caldarelli
We haven’t done the calculation that way because what we - I think what we’re trying to say is that rather than impact our permanent headcount to any dramatic degree. What we’re trying to do is to spread the pain sort of speak and remain responsive by taking a number of days off. So natural fact we’re taking more cost out of the organization than you would conclude from simply taking the headcount reduction.
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