Greetings, ladies and gentlemen and welcome to the Methode Electronics, Inc. Fiscal 2009 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode and a brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. This conference call does contain certain forward-looking statements which reflect management's expectations regarding future events and operating performance and speaks only as of the date hereof. These forward-looking statements are subject to the Safe Harbor Protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statements to conform the statements to actual results or changes in Methode's expectations on a quarterly basis or otherwise. The forward-looking statements in this conference call involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission such as our annual and quarterly reports. Such factors may include without limitation the following: 1) dependence on a small number of large consumers within the automotive industry; 2) rising oil prices could affect our automotive consumer future results; 3) the seasonal and cyclical nature of some of our business; 4) dependence on the automotive industry; 5) dependence on the appliance, computer and communications industry; 6) intense pricing pressures in the automotive industry; 7) increase in raw material prices; and 8) customary risks related to conducting global operations. It is now my pleasure to introduce your host, Mr. Donald Duda, President and Chief Executive Officer of Methode Electronics, Inc. Mr. Duda, you may begin.

Thank you, Paul and good morning everyone. Thank you for joining us today for our fiscal 2009 third quarter financial results conference call. I am joined today by Doug Koman, Chief Financial Officer; and Ron Tsoumas, Methode's Controller. Both Doug and I have comments today. And afterwards, we will be pleased to take your questions. As we discussed last quarter, the increasingly challenging economic situation and more specifically the severe downturn in the worldwide automotive industries greatly impacted our results in the third quarter. Additionally, our three and nine-month results were affected by charges relating to our restructuring and goodwill impairment. However, increased penetration in the human machine interface, sensor, and power markets in the first nine months of fiscal year 2009 was very encouraging, notwithstanding the severe downturn in our Automotive segment. Specifically, in Methode's third quarter, net sales decreased almost 42% to $81 million. Excluding the restructuring charge of $3.8 million, and impairment of goodwill and intangible asset charges of approximately $32 million, Methode's net loss was $0.13 per share in this third quarter, compared to a profit of $0.27 in the fiscal 2008 third quarter, with a $138 million in net sales, again an almost 42% drop. While the majority of the decrease in revenue was due to lower sales in our Automotive segment, our Interconnect and Power segments were also down due to the slowdown in housing, construction, and consumer spending. Despite reduced earnings, due in part to impairment and restructuring charges, we still generated $9 million in positive operating cash during the third quarter and $38 million in the first nine-months of fiscal 2009. Back to automotive. In 2005, long before the current difficulties in the automotive industry, we realized the challenges and issues our legacy automotive business could face and took actions to reduce…

Thank you, Don. Good morning, everyone. I'd like to first comment on the goodwill and intangible asset impairment charges that were recorded in the third quarter. One indicator of impairment is whether a company's market capitalization has remained below its net booked value for a period of time. That condition existed for Methode during the later portion of the second quarter. At the end of the second quarter we disclosed that goodwill impairment was reasonably possible at some of our reporting units that was not estimable. We disclosed the amount of goodwill associated with the effective reporting units was about 29 million. We completed the analysis under the Statement of Financial Accounting Standards 142 during the third quarter. The final goodwill impairment charge was 18.1 million. We recorded 11.5 million in the Interconnect segment, 5.4 million in the Power segment and 1.2 million in the other segment. Additionally, in the third quarter, based on our estimated future undiscounted cash flow, it was determined that certain identifiable intangible assets related to our TouchSensor business unit was also impaired. Therefore, we recorded a $14.6 million impairment charge related to those assets. Given current events and circumstances such as the continued drop in our market capitalization, it is reasonably possible that we may need to record additional impairment charges to either goodwill and/or identifiable intangible assets in the fourth quarter. Let me now move to the sales and margin activity for our reporting segments. The Automotive segment had third quarter net sales of 36.6 million, compared to 88.6 million last year, a 59% decrease in automotive sales. For the nine-month period, the Automotive segment had net sales 196.5 million, compared to $261.3 million last year, a 25% decrease in net sales. The decrease is due to the dramatic drop in global vehicle sales,…

Thank you very much. Paul, we are ready to take questions.

(Operator Instructions). First question comes from David Leiker with Robert W. Baird.

Hi. Good morning. It's Keith Schicker on the line for David. I just wanted to stay with the broader picture question going forward. Don, if we look in the non-automotive businesses, you're about five or six weeks now into the fiscal fourth quarter, how are things trended relative to what you saw in the fiscal third quarter?

That's going to be difficult to answer because we don't provide guidance. I don't want to say that things have stabilized. I think we're still seeing the... around the world, I think we're seeing a tough macro economic condition. We've seen business over the last six months... I can say last six months, probably last five months, drop-ins, we expect a very tough calendar year 2009 here. And again, I can't give you more color than that. I'll be starting to give you guidance.

Sure. That's helpful. And if we look at the 98 million of restructuring just announced, if I understood you correctly, that's going to be wrapped up by the second or the first half of the fiscal 2010. How does that break down by segments if we wanted to flow that through our model?

See, I'm just trying to think we have -- most of that is automotive I guess. We have a little bit of... we have little bit of it in the interconnect. As Don mentioned we've got TouchSensor. We're moving their manufacturing down to Mexico. We're also consolidating the Power segment group, but I think the substantial portion of the charge is going to be in automotive.

Okay. And if we look at the Ford revenue that's going to start be transferred in July, the share. Is there anyway that you can quantify how much revenue is going away?

I want to be mindful of our relationship with our customer. I believe Ford has handled this extremely well, very, very professionally. The revenue in the Reynosa facility from Ford, probably say a year ago was in the $60 million range, and on an annual run rate. And now we didn't do region projection going forward because we know we were exiting that business. So we've not taken into account the further reduction in auto sales. But, last month it was running something below 9 million, so and losing close to 3 million. And that's probably as much color I want to give on that and you certainly deserve an answer. But again, I want to be mindful of our customer.

That's very helpful. And then I think if we look towards the fourth quarter, is it unreasonable to expect a big inflow from working capital and looking forward on the cash flow horizon, what are your thoughts about the dividend?

Well, from a dividend standpoint we just announced our usual dividend of $0.07. And I'm not going to speculate one way or the other what Ford does several quarters from now or even next quarter, that's up to them, but from a cash --

Yeah, I guess on the working capital side, Keith, I mean we expect to make some improvements to inventory and... but that will, also it’s just the timing of the cash portion of the restructuring may offset the benefit of those improvements there. So, I don't know that I can give you a real good answer on that, but it's pretty dynamic. We're going to have a lot of ripping pieces for a while.

Sure. And you said six to eight million CapEx in fiscal 2010. Can you provide any help on depreciation, amortization level and maybe a tax rate?

Yeah. I mean... on the tax rate, I think, again we are seeing more of our income shift offshore. So, I think our tax rate will continue to be probably on a normalized basis. I guess I'm struggling a little bit Keith, because we're going to have some of the restructuring charges that are coming through, the charges if we do have any more are going to influence that. But I think otherwise we should probably see our tax rates still running around in that low 20s rate.

Yeah.

Was there another question there?

D&A?

Yeah, the CapEx we expect to slowdown. The depreciation probably will come down to maybe next year around 17 million.

Okay.

Because we have been, some of the restructuring is -- we've eliminated some of the depreciable base.

Okay, that's very helpful. Thank you very much.

Thank you.

(Operator Instructions). With no further questions in the queue, I'd like to turn the call back to Mr. Duda for any closing comments.

Alright. Thank you, Paul. We'll just wish everyone a pleasant day. And thank you for listening.

And once again that does conclude our conference call for today. We thank you for your participation. Have a great day.