Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Analyst for Dean Dray – FBR Capital Markets.
Analyst for Dean Dray – FBR Capital Markets
Decrementals were just outside of your high end of 30-40% target range for the quarter. Was that in line with your internal expectations and where would you expect decremental to head in the second quarter?
Adrian Dillon
That was right in line with our forecast of a 40% decremental. We can’t call it that closely that 40-41%. We knew with revenues being down as sharply as they were that it was going to be tough to stay within the operating model and we were very pleased to see that we hit the range of that 30-40% decremental. As things flatten out we would expect to stay within that range of 30-40% and as things begin to pick up and we get the full benefits of the restructuring we would expect to see incremental that in fact could be in fact considerably better than that 30-40% in the near-term.
Analyst for Dean Dray – FBR Capital Markets
Near term meaning next quarter or early FY10?
Adrian Dillon
FY10.
Analyst for Dean Dray – FBR Capital Markets
There was still some inventory reduction going on in Bio-Analytical markets last quarter. Did that continue into this quarter?
Adrian Dillon
We mentioned in some of the consumable markets last quarter there seemed to be some de-stocking. That did not appear to be replicated in this quarter although we also didn’t see a reversal of it either. I would say that inventories are pretty lean in the channel but we have not seen any material restocking.
Operator
The next question comes from the line of William Stein - Credit Suisse.
William Stein - Credit Suisse
I am wondering if you could walk through the restructuring program or programs. There have been two or three separate things you have spoken about and clearly were making some very good headwinds on those but if you could walk us through that perhaps quickly but telling when we expect to see the benefit in each of those programs. Is it in the coming quarter? Two quarters out? Three quarters out?
William Sullivan
There has been no fundamental change to our restructuring as outlined on our last investor update. The headlines are essentially a reduction of roughly 3,800 employees over the course of what we had stated at that time of a year. The bulk of those reductions will in fact be completed by the end of this fiscal year. That is why we are confident in Electronic Measurement if in fact the revenue returns to $600 million in Q2 that we would be at a 12% operating profit and anything close will be at double digits. The focus of the restructuring has been in Electronic Measurement, which was the primary one, and secondly has been in global infrastructure and I will have Adrian make a few comments about that.
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