Good day, everyone and welcome to the AMETEK Incorporated third quarter earnings conference call. This call is being recorded. For opening remarks and introductions I would like to turn the call over to Mr. Bill Burke, Vice President of Investor Relations & Treasurer. Please go ahead, sir.

Thank you, Laura. Good morning everyone and welcome to AMETEK's third quarter earnings conference call. Joining me this morning are Frank Hermance, Chairman and Chief Executive Officer and John Molinelli Executive Vice President and Chief Financial Officer. AMETEK's third quarter results were released earlier this morning. These results are available electronically on market systems and on our website at the investor section of ametek.com. A tape of today's conference call may be accessed until November 10th by calling 888-203-1112 and entering the confirmation code number 224-0076. This conference call is also webcasted, and can be accessed at ametek.com and at streetevents.com. The conference call will be archived on both of these websites. I will remind you that any statements made by AMETEK during the conference call that are not historical in nature are to be considered forward-looking statements. As such these statements are subject to change based on various risk factors and uncertainty that may cause actual results to differ significantly from expectations. A detailed discussion of the risks and uncertainties that may affect our future results is contained in AMETEK's filings with the Securities and Exchange Commission. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements. I will also refer you to the investor section of ametek.com for a reconciliation of any non-GAAP financial measures used during this conference call. We will begin today with some prepared remarks, and then we will take your questions. I will now turn the meeting over to Frank.

Thank you, Bill. AMETEK delivered good financial results for the third quarter, given the difficult conditions in our markets. Sales were down 23% to $497.1 million. Internal growth was a negative 26%, with the impact of foreign currency and additional 1% headwind. Acquisitions added 4% to growth. Operating income, declined to $77.5 million, from $120.1 million last year, reflecting the impact of the reduced sales, partially counterbalanced by our cost reduction activities. Operating income margin, was 15.6% in the quarter, net income was $43 million or $0.40 per diluted share. These results include $0.02 per diluted share of restructuring costs, predominantly in the Electronic Instruments Group. Excluding these restructuring costs third quarter earnings were $0.42 per diluted share. Cash flow from operations was excellent at $72 million, up 15% over last year's third quarter. In the face of difficult market conditions, we delivered good financial results. We believe our overall business has stabilized, our restructuring initiatives are on track, and we continue to focus on our key strategic priorities to drive value for our shareholders. In the third quarter, we saw the opportunity to do some additional restructuring, predominantly in the Electronic Instruments Group. These actions will have little impact in 2009, but should provide a benefit of approximately $4 million in 2010. Turning our attention to the individual operating groups, Electronic Instruments Group experienced difficult market conditions in the quarter, but our team performed very well. Sales decreased 24% to $271.8 million, as we saw weakness in the aerospace aftermarket process and industrial businesses. Internal growth was down 25%, with the impact of foreign currency an additional 1% headwind. Acquisitions added 2% to revenue. EIG’s operating income was $47.9 million versus $80.2 million in last year's third quarter. Operating margins were 17.6%, reflecting the impact of lower revenues and…

Thank you, Frank. As Frank has covered our results at a high level I will focus on some particular areas of interest. Selling expenses on a core basis were down 22% in the third quarter, in line with the drop in sales. Corporate G&A is running at 1.6% of sales year-to-date, and should be down 30% in dollars from the 2008 levels. The effective tax rate for the quarter was 27.6%, down from last year's third quarter rate of 31.1%, driven primarily by state tax planning initiatives that benefited the quarter. For the first nine months of 2009, the effective tax rate was 31%. As we have said before, actual quarterly rates can differ dramatically either positively or negatively from this full year rate. On the balance sheet, capital spending was $6 million for the quarter and $21 million for the first nine months of the year. Expenditures for capital in 2009 are expected to be approximately $30 million. Depreciation and amortization was $17 million in the quarter and $48 million for the first nine months. For 2009, depreciation and amortization is expected to be approximately $66 million. Operating cash flow for the third quarter was excellent, totaling $72 million, up 15% over last year's third quarter as working capital investments were reduced. Reduced operating working capital defined as accounts receivable inventory and less payables, these were a source of cash of $16 million in the quarter driven by reductions in inventory and receivables. Further reductions in working capital remained an opportunity for us. Third quarter free cash flow was $66 million, representing 153% of net income. For the first nine months of 2009, operating cash flow was $256 million, up 25% over the first nine months of 2008. And the free cash flow was 153% of net income. Total debt was $1.06 billion at September 30, unchanged from June 30. Offsetting this debt is cash and cash equivalents of $201 million, resulting in a net debt to capital ratio at quarter end of 37%, as compared with 44% at year end. Over the past two years we have expended a significant amount of effort to improve company's capital structure and ensure that adequate liquidity was available to support our growth plans. A result of this work is that AMETEK has plenty of liquidity available and no significant debt maturities until 2012. At quarter end, we have approximately $635 million of cash and credit facilities to support our growth initiatives. Clearly, liquidity is not an issue at AMETEK. As we see our business stabilize we continue to manage our cost structure and balance sheet effectively maintaining a strong liquidity profile and position ourselves to navigate through the current economic downturn. Bill?

That concludes our prepared remarks, Laura we will be happy to take questions now.

The question-and-answer session will be conducted electronically. (Operator Instructions). Our first question comes from Allison Poliniak with Wells Fargo.

Just a question on the EIG operating margins you talked about a lot of it being impacted by the restructuring, can you quantify that, what the margin would have been maybe without the restructuring cost.

The impact of the restructuring on EIG margins was about 100 basis points.

Okay. And then looking at you know you talked about the $135 million in savings this year, can you talk about how much of that is permanent versus how much would eventually come back with volume as well.

I would say about two thirds is permanent, and a third might come back.

Our next question is from Christopher Glynn with Oppenheimer Funds.

Looking at the fourth quarter, you didn't mention the military, just wondering is that still on track with sort of a concentration of contract work and also in the fourth quarter, any comments on mix trends versus third quarter, and prospects for extended customer shut downs?

In terms of the military shipments, as I mentioned in the third quarter conference call, we anticipated more military shipments or will anticipate more military shipments in the fourth quarter and in fact, that is true. We expect that to in fact happen. In terms of mix trends, the only negative impact to mix is that our aerospace aftermarket business, not the third party MRO business but the aerospace aftermarket business our OEM aftermarket business is expected to be a little bit weaker than we had anticipated. And that does have a higher contribution in terms of margin. So there will be a little impact of that but we have covered that in our estimates. And yes, we are concerned that in the fourth quarter, there may be more shut downs right at the end of the year, and is one reason that we have been somewhat conservative in our guidance, but we think we have covered that.

And then just broadly looking at guidance, you'll characterize it as a substantial improvement over the third quarter, certainly see that at the high end but if you look at the low end, up $0.02 versus the adjusted number, this quarter could you just maybe address that and the sensitivity between the high and low ends?

Yeah. The way we were looking at that is again on a GAAP basis we did about $0.40 in the third quarter and our guidance is $0.44 to $0.49. So if you look at the midpoint of that range and we feel it is a sizable improvement, and that's why I characterized it that way. In terms of what could cause us to go to say the lower end of that range it would be what I talked about before, if the aerospace aftermarket business is weaker, due to the high contribution margin that would be on the lower end of the range but again, I think we have been relatively conservative on that particular item. So, hopefully that will not occur. In terms of the high end, it would clearly be volume driven as well as maybe getting a little more out of cost reduction activities.

Our next question comes from Jim Lucas with Janney Montgomery Scott.

John first housekeeping question, payables?

Sure Jim $171 million at the quarter.

Great. Thanks. And frank, on the stabilization comments you made, I was wondering if you could expand a little bit what you are seeing geographically, North America versus Europe and Asia, and you gave a little bit of color on aerospace but in the process and analytical, particularly the process side, any update there of what you are seeing sequentially would be appreciated.

Sure, Jim. In terms of the geographical mix of our businesses, I think we are seeing trends that are very similar to what other companies are seeing. In essence, the most positive part of the geographic content is in the far east and particular in China, that particular area of the world has recovered almost unbelievably faster than would have been expected, and we are definitely part of that recovery. So that market is doing well for us. The US market probably the best way I can characterize it is that it has stabilized and that will link to my comments in a moment about process and answer to your second question. And Europe, and that part of the world is the weakest area, but we are seeing a little bit of life over there. So, if I had to rank these Asia first, US second, Europe third. In terms of the process businesses, we are seeing an improving trend in the third quarter conference call. I had talked about the fact that we expected the third quarter to be our weakest quarter of the year. And a key factor in that was the process businesses, because we were seeing a decline in the oil and gas businesses as we entered the third quarter. And in fact that happened. As we go into the fourth quarter, the trend is definitely improving. The oil and gas business has stabilized and the other parts of the business, which are a sizable portion of our process segment which relate to research related businesses which are about 20% of the overall process segment. And our metals related analytic instruments business which is about 25% of the total process segment, are both improving. This is what we anticipated, the order patterns support that and we believe we are going to see increased sales in the fourth quarter over the third quarter from those businesses.

Okay. And finally just on the acquisition pipeline, which you know we are hearing from a lot of the companies as the environment is improving, as you look at the pipeline to the extent you can could you give us color of the type of deal that you are seeing, are there particular geographies, smaller versus larger, valuations and what the competitive environment on some of these deals look like?

Yeah, sure Jim. Basically, the deals we are looking at are sort of right now on the center of the type of acquisitions that AMETEK does. These are, basically acquisitions that are in the $50 million to $75 million kind of sales range, not real large. These are the type of deals we like to do. Multiples are still a little bit higher than I would like, they have definitely regressed, but not as much as we would have expected given the severity of this economic downturn, hopefully we’ll see those multiples come down a little bit more over the next quarter or two, but the multiples are not crazy. They're definitely within the range of what we have been paying historically, but not as low as I would have, I would have hoped for. In terms of international content versus US content, the majority of the deals we have on the table are US centric. As you know, we have done a lot of international deals over the last several years, but right now the deals that are, we're actively engaged with are US based. In terms of the business, it’s the deals we are looking at are again aerospace, [they're] in our process businesses. So, right in the center of our strategy.

Okay. Great. Thank you for the color.

Sure.

Our next question comes from John Baliotti with FTN Equity Capital Markets.

Good morning, Frank. I was curious if just on one housekeeping how is the order, if you look at the sub segments, is there a way to characterize or just rank the order patterns that you are seeing?

Let me think about that. We don’t view it that way, but the total orders for the quarter were $479 million. And if I look at the trends process is up, cost driven motors would be up. Aerospace would be relatively flat, maybe slight decline due to the aftermarket. So if I rank them, I would put the process and cost driven at the top, I put aerospace second, and I would probably rank the other business which is the industrial businesses and EIG at about sort of flattish to same as aerospace.

Okay. And if you sort of in a longer term view, if you think about what you guys have done since the last cycle, in terms of the M&A and both on acquisitions and also adjustments you have made to the efficiency of the company, is there a way, do you guys think about where you have moved the company in term of the long term growth rate of the company the core growth and also the profitability like as you do deals and think about how the portfolio shifted, is there a way for you to think about in the big picture how do you think the growth has changed?

Yeah I think I can give you an outline on without maybe specifics. But just to give you a view of the trends, first of all, we have done a sizable amount of restructuring. If you look at it on the basis of the kind of numbers that we are talking about in terms of cost reductions, say as a percentage of sales versus other companies we are clearly at the high end, in term of restructuring. And that means that as volume returns, the contribution margin of the company is going to be superlative. Our contribution margins had run when volume was going up on the order of say low 30s, and we are in the process now putting our budgets together for next year. But obviously, the contribution margin is going be substantially higher than that. So, for every dollar to the top line, what goes to the bottom line is going to be significant. And I can't wait for that to happen in terms of seeing that volume increase, but the fact that we have stabilized now hopefully we are not too far away from seeing some major up ticks in our markets. In term of the structure of the company, it really depends on the timeframe in which I look at it. But in general as I think you know, when I became CEO of the company the majority of our business was in cost driven businesses and we have made a fundamental shift to much more differentiated businesses, and that continued, through the last round of acquisitions so that we have moved the entire portfolio of AMETEK to much more differentiated businesses, the last number I saw had our businesses, over 90% are differentiated type of businesses. So, a very very significant change in the portfolio and as that change happens the internal growth of the company goes up. Just by definition having less of the cost driven businesses in terms of the percentage of your total revenue meaning [that] that’s a lower growth business means the overall growth of the company is going to going to go up. So, I think as the economy improves we are going to see an improved organic growth rate, there will be some negative impact of potentially in term of margins as you bring in new acquisitions, because you obviously don't bring them at the contribution level, but we have always been able to overcome that and show good margin improvement. And I think that will happen as well as we go into the future. John I think you have a point too.

Yeah, I would chip in Frank, the picture you are painting we anticipated our capital expenditures to be reduced, and we are seeing that clearly this year with conservative estimates of only $30 million in capital spend this year. And I think that bodes well for the future needs of the company, because we are not trying to manage that number at all. I think that's just a natural flow from the way we have constructed the business pattern.

And John would you think that as you guys expect your own spending behavior coming out of this and your customers, are you expecting more, what sort of pace are you expecting for your I would imagine that you are going to react similar to your customers in terms of your own, you know your CapEx and other types of spending. Do you think its more of a gradual.

It’ll be very gradual, John. We have got plenty of prick bricks and [mortars] around the world. I don't see those needs hitting us at all. We’ll have incremental capital needs basically a project-by-project basis. And so I think the trend of this year of 30 million, that might be people are so busy saving money that they're not spending there. But slightly but I just don't see capital needs being a major part of our dynamic going forward.

And just to add to that, I mean that also reflects this change in portfolio that we have gone through and that I can remember a number of years ago when we were looking at 5% and 6% of sales in terms of capital (Inaudible) of the business. And as we changed the portfolio, the capital appetite for these businesses are substantially less.

So its not just the current environment but structurally going forward…

Structurally

That will stay, and okay. All right thanks very much, guys.

Our next question comes from Jamie Sullivan with RBC Capital Markets.

Hi, good morning. Wondering if you can just clarify on the end market views and your different businesses if the aerospace aftermarket is that the only real change that you have seen since 3Q?

Well, it’s not the only change we have seen from the view point. As I mentioned in answering Jim's question our process businesses are also going to improve. Now we did talk about that in the third quarter. So I guess it’s how you characterize that. But yeah I would say that the only change from what we talked about in Q3 is a little bit weaker business in the aerospace aftermarket.

Okay. And you still see aerospace overall as flattish as we go into next year.

Yes. That's a great question. If you look at our overall aerospace business that encompasses both half’s of the company the outlook for next year obviously we are putting our budgets together right now. And we’ll get a much better call on that, as we go through the process. But our outlook right now is that basically our military business which is about 40% of our sales. And our third party MRO business which is about 25% of our sales will have positive growth, and we'll have negative growth in the commercial business, which is about 20% of our sales and our business and regional aircraft business which is about 15% of our sales and they will roughly counterbalance one another say within plus or minus 5%.

And on the oil and gas side, you mentioned orders improving into 4Q. Last quarter you also talked about the tone of customers getting somewhat incrementally positive, can you just give us an update there, kind of as we start to think about 2010 with the tone of customers and their budgets look like?

Yeah, it’s definitely little bit better. I don't want to say it’s off the charts positive. That would be definitely an overstatement. But we are hearing a little bit better trends, there is a lot of controversy as to why the price of oil is at 80. But that sure can hurt, having the price of oil little bit higher. So we do expect some improvement as we go into the fourth quarter as I shouldn't say improvement, but sort of in that business more of a flattish kind of environment, but people are more positive about that segment is probably the best way to say it.

Okay. Then just lastly, I guess as was thinking about M&A and the portfolio of businesses that you have, if you think about short, mid and long cycle do you think about that when you think about putting together the portfolio although waiting at a little bit more towards short, mid or long or is that not really something you consider?

Well it’s absolutely something we consider. Just in general and this is obviously just a high level comment the very short cycle businesses that meet with our portfolio tend to have a more of a commoditization tone to the businesses. So that in general because we want to acquire differentiated businesses with a higher technological content, they tend to be more medium and longer cycle business, they tend to be more in the process side of the business, more in the aerospace side where the process businesses are, I characterize them as mid cycle and the aerospace more long cycle. So there is a tendency for the portfolio to move in that direction. And you know I think you can see that as the economy here dip so the impact to us was delayed because of that and the recovery is probably a little bit delayed from what you have heard from other companies. So its part of the make up of AMETEK right now.

Thank you.

Our next question comes from Mark Douglass with Longbow Research.

Hi. Good morning. If we can talk about EIG again and the restructuring is there anything in particular that precipitated the additional restructuring here part of process and analytical or can you just give a little more indication as to what precipitated that?

Sure. It was purely opportunity based, as we looked at EIG, we saw an opportunity that came out of some of our thoughts about next year as we are going into the budgeting process. And we felt it was in the best interest of everyone to basically make that change, it was not huge obviously, it was quite small in comparison with the major restructuring that we did. And as I mentioned in my opening remarks the charge was only a couple of pennies and we expect about $4 million of savings next year from that activity. So we just, the real answer to your question is it was an opportunity.

And that $4 million is on top of can you go through what you expect in 2010?

We are in a process now of obviously rolling all of those cost reductions up. But yes, this is clearly incremental to anything else that we have talked to you about.

Okay. So, right now I forget what you said in the past. But we can go back and see what you are expecting 2010?

Sorry I don't have that number in front of me right now.

Think it was maybe 190 in total. Okay.

Okay.

And then if we again look at the analytical side of EIG what do you see as the opportunity going forward there? Is it a lot of new products, new developments and say mass spectrometers or is there, are you expecting some stimulus impact, people just increasing CapEx budgets because they want more quality control. Can you go a little more into of what you are seeing in analytical?

Yeah, absolutely. There are certain [problems] to what we are going to be seeing in analytical. Definitely, this is an area where we have put sizable dollars into development of new products. So, that this is a key driver and I talked about a couple of those in my opening remarks. So, we are looking to bring out new instruments at the higher end of those portfolios that have excellent margins and good growth characteristics. Another very important part of the analytic instruments strategy is the continual globalization of that platform. And the fellow that runs this business, Dave Zapico has done a great job of in essence getting his fair share of the international market. The India acquisition that I talked about in my opening remarks and also the fact that earlier this year, we talked about the fact that we are opening our own office in Bangalore, basically we are going to use that as a center of our operations in India. We are going to do both distribution from that office manage the distribution links as well as we are going to put R&D capability in there and use it as a low cost research and development facility. And in essence, we have just hired actually an R&D manager for that facility. And now we are going to hire engineers into that operation. And with the acquisition that I talked about, we now have offices throughout India. So we are going to really go after this and our analytic businesses are the ones that are driving that they see substantial opportunity in India its one of the last areas in the world that we have not put as much energy in, we put a lot of energy in China and the far East a lot of energy in Europe and both Western Europe and Eastern Europe and the Middle East. And now, India is a great opportunity for us. In terms of stimulus, absolutely part of the research improvement that I talked to and answered to a previous question, is stimulus driven. It’s not totally stimulus driven, but partially stimulus driven because funds are going to the various universities and research organizations around the world and we can capitalize on that.

Okay. And then finally again going back to the acquisitions. If when you close some deals, what are we looking at as far as accretion possibilities, is there going to be when the types of deals you are looking at do you think there is going to be significant amount of amortization that's going to hit in the first year and two up accretion possibilities or can you just describe a little bit about what you might expect there?

I mean as you know we do essentially all of our deals with debt, the cost of debt right now is very minimal. So in essence any deal that we do will have accretion associated with it. So again we are not looking at the mega deal here. We are looking at [Bolton’s] and those types of deals but, yes we would clearly expect accretion from the deals that we close, we don't expect sizable amortization there’ll be some but they won't be sizable. And one negative to what I am saying is that with some of the accounting rule changes you do have to expense more of the restructuring costs of these deals. So that will detract, but I can tell you the deals we are looking at will still be nicely accretive.

In the first year?

In the first year.

Okay. Thank you.

Our next question comes from Elana Wood with Merrill Lynch.

Good morning. Would you mind just running through the organic growth by platform or by end market like you usually do?

Okay.

Or maybe just comment where there are changes perhaps versus the second quarter if that's easier?

Yeah. Probably the easiest way I can do it is just quickly run through the businesses. For process, in the third quarter, the organic growth was down about 25% and for the full year we expect it to be down about 20%. For aerospace, its basically approximately 10% down for both the quarter and the year. For power industrial, let me see. I have got to get that out of my data here. Its around 25% down for both. For the differentiated part of EMG its down about 20. And for our cost driven for the year, it will be down about 25. So those are the numbers and as I mentioned in my opening talk, we expect the groups for the year and the company to be down about 20. So 20 for the company, 20 for EIG, 20 for EMG.

Okay terrific. Question on the tax rate, so you talked about some state tax planning helping the third quarter. Is there any benefit in the fourth quarter? Or how should we [briefing] about the tax rate for the fourth quarter?

The tax rate that you see year-to-date would be about the level we will end up for the final for the year. Approximately, don't see much changing in the fourth quarter at all. This was more of a one-time event from a benefit standpoint.

Okay. And then did you buy back any stock this quarter? It looks like your share count is a little bit lower?

No, no.

No? Okay. Currency, just wondering what you're baking in terms of currency benefit for EPS next quarter it looks to me like translation may boost EPS may be around the order of $0.02 to $0.03 sequentially, assuming the dollar remains roughly where it is today?

We don't see that in our forecast.

Okay. So you are not baking in any sort of sequential currency benefit?

No, we don't see anything at all of that magnitude in our forecast.

Okay. And then just lastly if you wouldn't mind commenting on order trends in terms since the quarter has closed, so that you have seen in October how that might compare to September's order trends?

Yeah. First of all if I talk about Q3 that was definitely a sequential improvement in orders, with September being sizably more than the first two months now. You have to take somewhat into account that the first two months are you know vacation month’s etcetera. But even taking in to that account, we started taking that in to account we definitely saw some improvement in September, and so far in October the trend has continued. John and I were actually just commenting yesterday that orders are started off in October very, very good. The thing that we are concerned about, though is in the fourth quarter, whether we are going to see some plant shut downs of our customers. And so we have been a little bit conservative in our forecast based on that possibility.

Okay. And then just lastly on the restructuring, I don't know if its been announced yet to your employees, if it has can you just comment on what which businesses are going to be impacted sort of broadly with aerospace or would you prefer not to comment?

Yeah I would prefer not to comment. It was in EIG.

Okay.

Okay. Thank you very much.

Our next question comes from Matt Summerville with KeyBanc.

Most of my questions have actually been answered Frank, I was wondering if you can maybe just provide a little more color on some of the businesses you don't specifically talk about in EMGs, such as the differentiated motor businesses outside of military and aerospace, and what you are seeing in the specialty metals business?

Yeah, what we are seeing in the specialty metals business is an improvement trend, Q3 was weak, no question about it. But orders and specialty metals SMP are showing some life and we are feeling better about that business. Our Reading Alloys business still is somewhat weak, and haven't seen the improvement trends there. And our technical motor business which is part of the differentiated segment is flattish, is the best way to describe that it is not yet seen an up tick.

And then just a question on pension, John can you remind us what your pension expense is for 2009 and what you think it might be in 2010?

Yeah. The 2009 is $18 million increased costs this year for the year. And that’s relatively evenly throughout the year. Next year we are hopeful that we’ll get some relief there but it is too soon to make a prediction about what that will turn out to be.

Okay. Thank you.

Our next question comes from Richard Eastman with Robert W. Baird.

Yes. Good morning. John or Frank, could you just talk through the gross margin on a consolidated basis a little bit? I mean we lost about 200 basis points there. And I am curious the decremental didn't look too bad. But is that primarily mix, or did any of the restructuring hit that?

All of the restructuring that we talked about obviously hit that and the degradation is largely due to the large volume. That's really what drove it. The internal growth and the growth of the business and the third quarter as we said is going to be the weakest. And that was the primary driver. Although we are pretty damn pleased with the absolute level of that given the volume drop to as you said the incremental detrimental margins were good. So we are pretty pleased with it, but that's what drove it, Richard.

For instance the aerospace aftermarket, presumably that would be a higher gross margin for mix also…

Yeah. I mean that's in that equation when I say the volume went down and obviously that's going to have a disproportionately higher impact on the gross margin. The gross margins in that business run on the order of 70%, 75%. So they're very high.

I see. And then also just a question on pricing Frank are we flattish year-over-year on price? Have we had any give backs here, how did pricing look overall?

Yeah, it varies by business, Richard. But I would say, overall, we are slightly up about a point. And the pricing environment is not easy. It’s tougher, but if you step back and think about the, what's happened in the economy to be able to get a point of pricing is still relatively good. But the environment is not easy to get pricing. NEW SPEAKER

Okay. And then just a last question with sales maybe for the fourth quarter, I think given your guidance, maybe around 515ish million and your orders, Q3 orders were 479 is the difference there this improving trend that we have seen or are you comfortable that the military business can spike up off of the backlog? How do we make up the differences?

It is a little of both, obviously we are seeing improving trends in the process businesses as I talked about. We are seeing an improving trend in the cost driven businesses. And yes we have backlog to ship not just in the military side of the business, but aerospace overall has good backlog and we also expect those order rates in aerospace to come up, but that stuff will not necessarily be shippable in the fourth quarter.

Okay. So you feel pretty good about the visibility on sales for Q4 with the exception of some possible plant shut downs at the very year end.

That's exactly right. Very well characterized.

Okay. Thank you.

Our next question comes as a follow up from Christopher Glynn with Oppenheimer.

Thanks. Just going back to aerospace aftermarket, could you talk about your different exposure to the supply chain channel versus the airlines, what you are seeing the relative state of de-stocking in those two sides, and what your thoughts are around when you might come up against the flat comparison in the aftermarket?

What we are seeing from the airlines is obviously, they are having financial difficulties right now. So they are trying not to order anything that they don't need. So there's definitely a significant push back from the airlines. And at some point that string will run out, where in essence they have to order. So, if we look at the, I’ll give you just some market data. Overall, the aerospace aftermarket business is expected to be down this year on the order of 20% - 25%, those kind of numbers. But next year there's actually all of the industry forecast that I have looked at show growth going into next year. And we expect that our aftermarket will be better than you are going to see some better performance there, and another very important thing, if I just switch the conversation for a moment to our third party MRO business. There we have a tremendous opportunity to gain share, and in my overall view of aerospace that I mentioned before, we are expecting mid single digit to high single digit organic growth in the third party MRO business because of our ability to gain share.

Sounds good. Thank you again.

It appears there are no further questions at this time. Mr. Burke, I’d like to turn the conference back over to you for any additional or closing remarks.

Okay. Thank you, Laura. I’d like to thank everyone for joining our call. As a reminder a replay can be heard by calling 888-203-1112 and entering the conformation code 224-0076 and its also on the internet at ametek.com, and streetevents.com. Thank you.

That concludes today's conference. Thank you for your participation.