Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Brian Peterson - Raymond James.
Brian Peterson - Raymond James
Your sales growth in EMEA in local currency actually improved a little bit year-over-year, and I'm just wondering if we've seen some easing? I know you guys have been pruning some customers there. Has that mitigated a little bit and maybe do we have more to go there in Asia?
Alain Monie
I'm not sure I got your comment. You mentioned that sales grew in local currency?
Brian Peterson - Raymond James
They improved a little bit year-over-year relative to the third quarter, the rate of decline.
Alain Monie
Oh, on rate of decline, yes. Well, you know, we continued to - in that geography we continued to look at our businesses on a return on invested capital metric and so we have started earlier last year in pruning and letting go businesses that were not sustainable. We have done a lot of the work there and we think that indeed the rate at which we are now going to let go additional business will decrease. However, the market environment itself is certainly not stronger, and so overall I would remain very prudent on the stabilization of this decline.
We are going to focus this year on the SMB market. That has better margins as well and we are going to capitalize on the data capture and point of sale categories to help us mitigate some of that impact that we had last year.
Brian Peterson - Raymond James
And just kind of a housekeeping question on the restructuring. You said the $100 - $120 million, is that incremental to the $20 million you guys talked about in the fourth quarter? And just maybe to get some of your assumptions on that, are you kind of assuming that demand deteriorates further in '09 or are you kind of assuming that things are at current run rate levels?
Bill Humes
Yes, overall the $100 - $120 million is incremental to the already realized annual run rates of the $20 million that we talked about and did in April onward. So that will be incremental cost savings and reductions that we are executing as we speak.
Greg Spierkel
And Brian let me just touch on here, I think, your question around demand deteriorating further in '09 over '08. Without question at this stage I would have to say yes. In the first half of last year we did not see that much of an impact except for Europe, where things were already starting to slow down in the IT universe. But as we enter this quarter and enter this fiscal year, as you can tell, we are providing some outlook on the revenue situation that we're dealing with in the marketplace and we're guiding in the low 20s decline year-on-year as a percentage of sales.
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