Deane Dray (Goldman Sachs): You said 7 cents from FX this quarter and that was 2 to 3 cents from pension. Is that correct?
Patrick D. Campbell: Yes. I do want to clarify. FX the way we calculate it, is if you just literally take rate differences on both transactions and translation and that is where you get the number. It does not pick up any of the other input related impacts of say a weaker dollar on commodity prices and alike. It is an exaggerated example of what the real impact is on the bottom line.
Deane Dray (Goldman Sachs): How about your assumptions for the year when you look at that 10% plus where would FX and pension combine represent of that 10%?
Patrick D. Campbell: Pension will be give or take $0.10, FX is in the 25, 30 range.
Deane Dray (Goldman Sachs): What are you using for your Euro exchange?
Patrick D. Campbell: It is 158 at quarter end. That is what we would have extrapolated in our last forecast.
Deane Dray (Goldman Sachs): Where does capacity expansion stand and you are also cutting CapEx. Is that related at all?
Patrick D. Campbell: The $100 million reduction does reflect the economic situation we are in and so forth, as because if your growth rates do slow because of economic conditions, there are some things that we were to looking at relative to capacity in these and so forth. Out of the 19 plants, we are schedule to have about 13 of those up and running here by the end of the first quarter. Russia is the plant that we thought we would have up and running right now. We still are struggling getting final occupancy permit for that facility.
Stephen Tusa (JPMorgan): Do you have any worries about the economy and the impact on growth on the dental side?
Patrick D. Campbell: It would be fair to say that there are some discretionary decisions that customers make about, when they have a dental work done and as people get more and more concerned about discretionary income, it could affect people''s buying behavior. It would be fare to say that there has been some feedback that may be dentists have started to see, some slowing in discretionary treatments and so forth. My comment is that it is hard to get into dentist''s at times as well, especially orthodontist.
Stephen Tusa (JPMorgan): Could you expand on the optical side?
George W. Buckley: What was happening in the end mark is the set managers make us scrambling for share. That sort of there is a reordering of the powerbase in the marketplace, the leverage has swung more to the set manufacturers than it was previously in the panel manufacturers or even the upstream manufacturers and those dynamics are extraordinarily difficult to forecast accurately. You have to look at 3M in its total context. In 3M''s total context, the core of 3M has done well. It was able to overcome and surpass the challenges in Optical roundly.
|