On that basis, we’re projecting midpoint operating margins at 12%, which will produce operating profit of $241 million, net earnings of $133.6 million, and earnings per share of $3.08, a 12% increase. If we’re on that trajectory, the quarters will likely be $.72, $.76, $.79, and $.81. If we come in at the low end of our sales range, just under $2 billion, we would expect earnings per share of $3.03, still a 10%, or double-digit increase over ’08.

Given our view of our ’09 prospects, our Board considers our stock at its current price an irresistible investment. At a meeting yesterday, the Board authorized management to buy from the market up to a million shares of our stock. The Board expects that this investment will be in addition to not an alternative to our continuing acquisition campaign.

Now for a little more detail on our cash flow, our tax rate, and our pension expense, here’s John Scannell.

Good Morning.

I’ll begin with a discussion of our foreign currency exposure and follow that with my usual review of cash flow, both in the quarter and for the year. I will then address our pension situation – a topic receiving a lot of press at the moment. I will talk about our tax rate and some additional items from the balance sheet. I will finish with some additional guidance for ’09.

Foreign Currency

Given the recent strengthening of the US dollar, I would like to provide some perspective on our foreign currency exposure. About 1/3 of our revenues are denominated in currencies other than the US dollar. We are exposed to both translation and transaction risks but our business involves extensive intercompany transactions which create a natural operational hedge. Let me illustrate the point with our updated guidance. Bob mentioned that our new sales forecast for ’09 is down by about $90 million in our industrial business and half of that is due to currency effects. When we work through all the translation and transaction impacts of this $45 million reduction in sales, the impact on the bottom line is negligible.

Cash Flow

Free cash flow in the quarter was positive $29 million, helping to reduce our Net debt by $20 million. Cash flow from Operations was $52 million, the strongest quarter in the year. Working capital was down $3 million in the quarter as inventories and receivables moderated from previous quarters in line with the sales change from Q3 to Q4.

Capital expenditures were $23 million in Q4 while Depreciation and Amortization was $17 million. Interest payments totaled $9 million and our cash tax payments were $17 million. In addition, we contributed $8 million to our pension plans worldwide.

For the year, our Free Cash Flow was positive $16 million, a significant improvement over our negative free cash flow of $72 million in fiscal ’07. Fiscal ’07 saw the big ramp up in working capital as we geared up to support new aircraft programs. Capital expenditures totaled $92 million this year, down from $97 million last year. Depreciation and amortization at $63 million was up $11 million over ’07. Our overall growth in working capital for the year was just under 16% compared with our sales growth of 22%.