Good day and welcome to the EnPro Industries fourth quarter Earnings Call. Today's call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to Mr. Don Washington. Please go ahead, sir.

Good morning everyone and welcome to EnPro Industries quarterly earnings conference call. On the call this morning Ernie Schaub, our President and CEO, will discuss our earnings for the fourth quarter and full year of 2007 and our current outlook for 2008 and also have Bill Dries, our CFO; and Rick Magee, our General Counsel, here as usual to participate in the Q&A session. In just a moment Ernie will make his remarks and then we'll open the lines for your questions but first I want to remind you that you may hear statements during the course of this call that express a belief, expectation, or intention, as well as those that are not historical fact. These statements are forward-looking and involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risk and uncertainties are referenced in the Safe Harbor statement included in our press release and are described in more detail along with other risks and uncertainties in our filings with the SEC, including the Form 10-K for the year ended December 31, 2006, and the quarter ended September 30, 2007. We do not undertake to update any forward-looking statement made on this conference call to reflect any change in management's expectations or any change in assumptions or circumstances on which such statements are based. As usual this call is being broadcast or webcast on enproindustries.com. A replay of the call will be available on the website shortly after its conclusion. In addition if you have any questions that aren't answered on the call or if you have any follow-up questions after the call, please give me a call at 704-731-1527. Now I will turn the call over to Ernie.

Thank you Don and good morning everyone. We're glad you joined us today. As you know from our earnings release 2007 was another year of continued improvement for EnPro. We saw sales in excess of $1 billion dollars for the first time. And both segment profits and segment profit margins reached new annual highs. We've announced our financial results as an independent public company for six years now and in each of them we reported increases in sales and segment profits supported by strong cash flows. We feel very good about what we've accomplished and we expect to continue to improve again in 2008. Sales in 2007 were up 11% to $1.30 billion. Increased demand and pricing improvements drove growth of about 5% the remaining 6% came equally from acquisitions and foreign exchange. Segment profits improved by 14% almost $163 million and segment profit margins improved to 15.8% from 15.4%. The growth in margins reflects a very strong performance in our engine business where margins improved by more than seven percentage points and helped offset a slight decline in sealing product margins, which were affected by higher costs. Net income in 2007 was $40.2 million including a gain of $2.5 million on an extraordinary item. This compares to net loss of $158.9 million in 2006 when we adjusted the estimate of our liability from the low end of our range of possible liabilities to a point within the range. Earnings per share in 2007 were $1.80 including the extraordinary item. In 2006 we reported a net loss of $7.60 a share. The extraordinary item reported in 2007 relates to a gain on the acquisition of shares held by a minority shareholder and one of our subsidiaries. Before asbestos expenses and other selected items we are in $3.75 a share in…

Thank you (Operator Instructions) We'll go first to Liam Burke, Ferris Baker Watts

Good morning Ernie

Good morning Liam

Could you give us a little more detail on the step up on the Engine Products. I mean you had talked about maybe a 10%, 11% operating margin. Now they're up at 16%. Is there something significantly different in there now?

16 was for the quarter, for the year.

Right, I am sorry, I am talking about the fourth quarter, forgive me.

Yeah, we had a good mix, some good aftermarket sales. We shipped, we had good volume and volume always helps, as well is when we ship a lot of engines in the fourth quarter. Bill anything else in the fourth quarter? Typically we should at fair about 12.5 I would say.

Liam I think we ended shipping half of our engines for the full year in the fourth quarter alone a difference. In the past we talked about the engine business and the margins being very little if any on the engine side, we make our money on the parts and service side.

Right.

We had some, but we got some margin in the engines that were shipped. And we also had a very good parts and service quarter, and our margins on parts and service were up five points quarter-over-quarter.

Liam, having said that, as I said in my prepared remarks we're expecting this business to continue to be strong in 2008, and there is no reason to a decline. It's done a great job us plus these guys have really worked hard.

Okay and on the free cash flow front even with your asbestos needs you generated on a roughly $2.50 per share, which is including asbestos. Are acquisitions going to be your primary use of cash going into 2008 or do you see any need to either to buyback shares or reduce your debt that you current convert.

We continue to see acquisitions playing a role and the Board as we have said is always looking at buyback options and all the other options are using our capital resources. Acquisitions and capital spending to improve our facility and share back are all considerations as part of our strategy going forward.

Great, thank you.

(Operator Instructions) And with no further questions in the queue, I would like to turn the call back over to Mr. Washington, for any additional or closing remarks.

Thank you very much for joining in. if you did not a get chance to get your questions answered on the call, please call me at 704-731-1527. And we look forward to talking to you again soon. Thank you very much.

Thank you, ladies and gentlemen, for your participation. This does conclude today's conference call, and you may disconnect at any time.