Good morning. My name is Krystal and I'll be your conference operator today. At this time, I would like to welcome everyone to the Pentair Q2, 2008 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question-and-answer session. [Operator Instructions]. Thank you. Mr. Gleason, you may begin your conference.

Thanks Krystal. And welcome to Pentair's second quarter earnings release conference call. We're glad you could join us. I'm Todd Gleason, Vice President of Investor Relations. With me today is Randy Hogan, our Chairman and Chief Executive Officer and John Stauch, our Chief Financial Officer. On today's call we will provide details on our second quarter results as well as discuss our guidance for the third quarter and update you on Pentair's outlook for the remainder of 2008. Before we begin, let me remind you that any statements made about the company's anticipated financial results are forward-looking statements subject to the future risks and uncertainties such as the risk outlined in Pentair's 10-K as of December 31st, 2007 and Pentair news releases. Forward-looking statements included herein are made as of today and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results. Today's webcast is accompanied by a presentation, which can be found in the informational section of Pentair's website at www.pentair.com. We will reference these slides throughout our prepared remarks, any reference to non-GAAP financials are reconciled in the appendix of the presentation. I'd also like to point out that all financial results and references to year-over-year numbers in today's call and presentation are on a continuing operation basis unless otherwise noted or highlighted. As is our custom we will reserve time for questions and answers after our prepared remarks. I will now hand the call over to Randy, who will take you through Pentair's second quarter results and highlights, provide detail on significant actions and initiatives we are driving and provide his summary for our first half results. Then John will conclude our formal remarks with an overview of the impact of various actions we are undertaking in the year as well as discuss our future guidance. Randy?

Thanks, Todd. Thank you all for joining us today. Let's begin by reviewing our second quarter results shown on slide number two. Looking at our second quarter, we had solid performance as we'll walk you through on the call we embarked on a number of new important initiatives that will continue to enable our organization to deliver on our commitments. Let's walk through the highlights. In the quarter, we delivered reported earnings per share from continuing operations of $1.39, which includes a number of non-recurring items. The first is a non-recurring gain of $0.86 per share associated with the transaction we completed with GE to combine our residential water filtration businesses. The reported EPS also includes a negative non-recurring $0.14 per share impact from settling the Horizon legal case. And reported EPS includes a negative $0.01 per share impact from severance and restructuring actions taken in the quarter. If you remove those non-recurring items, which we feel is the most accurate way to evaluate our true operating performance, we delivered $0.68 of EPS, on an adjusted basis. That $0.68 is up 11% versus the $0.61 in the second quarter of 2007. The $0.68 also bested the high end of our EPS guidance of $0.64 to $0.67 by $0.01 per share. Strong performance in our technical products business enabled us to offset weaker results in our water segment driven from our pool business. We will provide additional detail on each business in a few minutes, but first here are some more of the headlines. Pentair second quarter sales of $910 million were up 1% above the $899 million in sales we generated last year. Our organic growth was flat in the quarter or down 3% in local currency, a strong growth in our technical products segment could not completely offset declines…

Thanks, Randy. As mentioned earlier, we have a lot going on at Pentair. Let me try to summarize a few of the moving pieces. Please turn to Slide 13. This slide is divided into three sections. The top section provides you with our reported GAAP EPS earnings for the second quarter and year-to-date as well as our outlook for the balance of 2008. We then walk across the adjustments to our year-to-date results as well as expected adjustments in the second half of the year. This middle section reconciles the GAAP to adjusted EPS so you can better understand our operating performance. The third section summarizes for the same period in 2007, the GAAP EPS and adjusted EPS results for comparison. Starting at the top, our second quarter reported GAAP EPS was $1.39. Walking down the adjusted earnings, you would move with the non-recurring $0.86 per share benefit from the gain created from the exchange of 20% of Pentair's residential filtration business for 80% of GE's residential filtration business. This gain was the result of a low double-digit multiple being applied to each company's trailing 2007 EBITDA results. The multiple is at the lower end of the range of filtration transaction multiples. Continuing to walk down the chart, the second quarter also included an unfavorable non-recurring charge to earnings related to the Horizon settlement. As Randy mentioned, it is nice to not have to reference the previous uncertainty any longer in our 10-K's, 10-Q's or forward-looking statements. The net impact to the settlement after accruals already taken and insurance coverage was $0.14 hit to Q2 earnings. This negative impact does not include a potential insurance recovery of approximately $10 million to one of our previous insurance carriers. The net cash impact to the third quarter from this settlement will be…

[Operator Instructions] Your first question comes from the line of Jim Lucas with Janney Montgomery Scott.

Thanks, good afternoon guys.

Hi, Jim.

And thank you very much for all the detail today. Two questions here, on technical products you touched on the end markets, but could you speak a little bit about some of the benefits if your getting them already of the GBU, combining electronic and electrical given some of the historical fits and starts you had on the electronic side.

Right, we got your comments. As you were referencing we combined the electronic and the electrical under [inaudible] the longtime leader of the electrical side of the business. The first benefit is he has done lot of G&A consolidation leveraging the expertise and capability in electrical to help take the cost out. The SG&A actually its higher in electronics, even though the margin in lower. So, it's clearly a big opportunity on the SG&A side. The second is, is that we had electrical plants, particularly owns in Mexico which were frankly running at 98% capacity in the electric side and running at 50% to 60% on the electronic side. So we are getting better leverage of the utilization there and also we are taking a broad technical products view on the growth side, so there is inferences in India and in China we are well rescued towards electronics, right now we are getting more of an effort on electricals. I think they are off to a really, really good start to get more cost benefit and growth benefit from it.

Okay. And from a strategic standpoint, I mean, clearly this was a very nice transaction with a new joint venture, you had the one divestiture earlier in the year, can you talk about from a managerial standpoint, how you are feeling about the portfolio today and are you in a position to pursue or are you even looking at anything along this scale, currently?

You mean something of a similar size?

Yes.

The opportunity to merge the residential businesses into one business, we had a lot of sense to us and our team has worked really well. The nice thing about it is we picked up some great people, including the GM of this business actually comes from the GE side. And so we've actually picked up talent. We have also beefed-up our operating leadership under my Mike Schrock to better handle client consolidations and I think we have a really, really good plan for that. So the filtration business is going to be pretty tied up with this residential venture, but it is not going to slow us in terms of our organic growth investment and really in flow technology hasn't been affected by this and actually selling the National Pool Tile business, like we did is allowing our pool and spa business to focus on the heavy lifting they have to do their, given the downturns. So I don't feel like they were management constraint to do other deals. That said, my main focus is to build the same kind of organic growth culture in water that we've proven we have in technical product.

And finally on the Young acquisition, could you just bring us up-to-date there of how that integration has proceeded and has it delivered on what you had targeted when you made the deal?

Yes, they are slightly ahead of plan versus our acquisition plan, they have great product line, they've had solid growth, they've been everything we thought they could be in terms of helping us in Eastern Europe. I think there is more we can do in taking that product in the Middle East, I think there is more in that... I am not complaining because our Middle East business was up over 60% in water in the quarter. But I think there is still even more opportunity to leverage that. And as we solidify the GBU structure, I think that there is more we can do with the technology and their product lines globally. So, financially good, sales good and strategy still more opportunity.

Great, thank you very much.

Thanks, Jim

Your next question coms from the line of Deane Dray with Goldman Sachs.

Hi, gentlemen, you had kind of stepped us through the commentary, you said it twice that this was the worst pool season in the history of Pentair. So, just take us through where you think end market demand went during the course of the quarter, I mean, there is some replacement cycle that should still be somewhat resilient. So what's happening really in sell through, are you losing share and with distributor inventories being this slow, wouldn't that suggest that we're going to see a little bit further demand coming out of distributors later on?

Yes, Dean, let me start with the end market, as I mentioned, that is you pointed it out. The end market sales are sales out of distribution into the actual... in the actual pools came in about where we thought it would be, we thought it would be down about 10% driven largely... we are between 55% and 60% replacement, but with housing starts down so steeply, particularly where we have our largest market share. We are the largest market share player in Southern California, Las Vegas, Arizona, Texas, Florida. With the exception at Texas those are all the markets that have been impacted the worst in terms of the housing slowdown. That came in about like we thought. In terms of the end market sales, the replacement is happening, but the upgrades that we might expect to have happened isn't, people aren't upgrading like... they're not upgrading controls the way they... we'd like to see them do. So, I think we have an opportunity to do some better marketing and sales on the replacement cycle, but they are replacing pumps and they are replacing filters. So, in terms of the distribution drawing down inventory, I think part of that was the weather, it was a little bit of a slow start to the summer. So, I think they were over inventoried and that was one of the factors, but I also think they are being very cautious because they didn't see the pick up and together managing their own cash. So, I think we... I don't think we were bullish about what would happen with inventory, but I don't think we anticipated this. We anticipated later in the year, they typically take their inventory down at the end of the third quarter, which gets to maybe your last point, your last question, which was shouldn't the inventory be done, shouldn't that bow low for the second half. I wanted to put that... we wanted to that on the upside, we didn't want to count on this, so when we say that we expect the business to be down in the second half to 15%, we are not expecting a big inventory to climb, but that's also worse than a 10% run rate sell through. So, I'd say that our outlook is the sober one on that. I don't think we are losing share, I think that the markets that have slow down less are where we have lower share. So, I view that as an opportunity to be beef up [ph] our share, I am talking about the Midwest would stay right as strong where Pentair isn't such a strong brand. In the Northeast, Hayward is still the Number 1 brand, I think we have opportunities to beef up our share there.

What about new products, I know in previous pool seasons there was a lot of commentary about the launch of new products in vitality index and it was awfully quite this quarter with regard to... last quarter, with regard to the expectations on new product contributions. Did that get dialed back or was there just not a contribution that you might...?

No, they... I wish they were bigger. They are about in line, given... the whole problem is being down 22%, they couldn't really hold sway. We are being able to sell those in markets that are more sensitive, I think there is still more marketing we can do. When we did the marketing in Southern California, for instance, on the Intelliflo Pump and the IntelliTouch Controls, we did well. I think that we can do more of that. That said, we've been scrambling the deal with the 22% downturn. So, I think if the mix is about what we thought it would be. The uptake in the replacement market is a little softer than we'd like in some of these newer technology, but we are within... we are within striking distances when we thought we'd be volume lines on the new products.

Okay. And just over line the joint venture, could you describe for us, I mean, you referred to the economics and a little about the scope of the joint venture, but how about on the product side in what markets specifically are you attacking jointly with this combination and where does the line on the joint venture end and where does the traditional some pump and paradigm that has residential exposure, where does that end?

Yes, actually, this is... let me just bound it for you. It's really one business, we're operating it as the vision of Pentair, we have a majority share owned by GE. But, we like that idea of keeping GE in a game because what they're bringing is the brand and they're bringing technologies, they're investing in some very good technology, residential isn't their focus, their market. So, they like the idea of getting a little bit up, check on some of their technologies they have developed. In particular, the technologies that they are bringing into this venture that we like, the home point or home springs, excuse me, the home spring whole-house ultrafiltration, which came from the Zenon acquisition and then the what's called [inaudible] RO system, which, we think both of those products have opportunities if they were more broadly distributed through the pro-channel, because it's a pro-channel kind of sale for most of those firms. So, we see real opportunity of that and we also see some other technologies that they are developing for the industrial and municipal space. They can triple down to the residential space. The scope of this is water conditioning valves, tanks, water filtration products, there are now some pumps there that none of our flow technologies business went into this venture. So, that's the scope around there. So, no well pumps and no well pumps. That set to the extent that we can leverage distribution like we've been trying to do and we've had some success of preferences with our industrial trust, between flow and filtration. I think we will do that, there certainly won't be any impediments to do that, though the cells were obviously can either get booked and flow technologies are in the residential filtration business.

So, do you know that that is an exclusive channel for residential in the market that Randy shared with you and it's a prepared supplier into the commercial, industrial side and each RDG and Pentair will continue to bring its own sales force to the industrial, commercial and municipal market.

Thank you.

Thank you.

Your next question comes from the line of Michael Schneider with Robert .W. Baird.

Good morning guys.

Good morning.

May be first, we could just focus on international water, curious when you look at the growth rates, by geography, international has been up about 10% according to the slide eight. And then the domestic business is municipal and commercial have been up about 12.5%, call it on on average. I'm curious why the domestic pump business is still not growing international given your lesser penetration overseas, its been a focused now for several years, Young pump that was growing strongly. Is there any particular constraint on the growth rate there?

Yes, we are going to refine that by the way, because its, I think there is still some export numbers getting booked in, and we're trying to separate them by vertical end market, but I think in particular in the pump arena where still lot of that product is getting booked as domestic even those going export for instance. Our...if you just take a look at our commercial pump business in North America, it grew up about 10%, we actually grew in the U.S. in flat market, commercial market we see as flat it actually grew mid-single digits, but it grew 50% exports. So, I don't think, we're probably don't have that split quite right yet, the reason ... Europe that's without the benefit of FX, those growth rate. And Europe, Western Europe has slowed to being single-digit kind of growth, so that drags it down. Asia continues to be the 30% kind of grower in China and India that we've been seeing and as I mentioned Middle East actually has grown over 60%. So, we are continuing to put efforts against that. So, I think when we have our Analyst Day, which is coming up, our Investors Day, we are going to refine these numbers more fully. So, I wouldn't say that there is much more than that, just find the difference.

Okay. And then could you just dig one level deeper and talk about Aurora and Fairbanks Morse domestically? Have you seen pressures on municipal budgets or project delays at all begin to unfold in those businesses?

Well, we've seen... I was talking about Aurora actually when I gave you those numbers before. It was over 5%, [inaudible] 5% and 8% growth in domestic commercial sales, although we think commercial construction was flat. So, we think some of our new products at variable speed and some of our other new products have actually helped us gain share in the US and as I mentioned, exports are way up. So... and that is Asia and that is Middle East where those exports are going. So, that's how we view Aurora. Aurora is really probably, I don't the exact number, but probably approaching 40% non-US now, which is outstanding. In the municipal side, if you take out the big New Orleans whale [ph] and look at year-over-year, our municipal backlog is up and our order rate has been really, really strong even excluding the additional efforts we've done outside. So, we haven't seen any slowing in municipal, not in our book of business.

Okay. And then in Technical Products, the growth rates on slide 10 show that you are expecting the growth [ph] from 16% to 9% first half to second half. It looks like... and at least we heard from your distributors there was another price increase that went out effective mid-year. Did you enjoy a pre-buy in Q2 that would have detracted from what's coming in Q3?

We've probably picked up a little of benefit, Mike, but not significant order rates. We are pretty good all through the quarter, strong all through the quarter. And frankly the first couple of weeks of July were pretty good too. So, my guess was we thought we might pick up a little, but... we probably did, but it's not... it's not really significant in my mind.

It would probably be a point or two, Mike. I think the one thing to remind you is that if you take a look at electronics last year, we had a difficult first half of 2007 and we began recovering in Q3 and Q4 of 2007. So, part of the year-over-year delta in the growth rate is a squeeze in the electronics contribution in second half of the year. Electrical, we are forecasting to be a little slower growth and we are anticipating that the price increase hold a couple of points as mentioned from Q3 into Q2.

And then similar question on margins. Is it... is it the case where pricing in the first half has actually outpaced or preceded your raw material inflation curve such that it looks like you are actually forecasting down margins in the second half, is that just raw materials now actually flowing through inventory in the income statement?

Well, we do think we'll see greater inflation in the second half, which is one of the pressures on margin. But the other big one, Mike, is we are assuming that electronics is going to play a bigger role in global and they have lower margins than North American electrical by a lot, as we've talked about before. We still haven't gotten electronics close to the 10% goal that I have for that business for those segments. So, I'd say it's probably as larger mix as the increased inflation in the second half.

Okay. Then John, just a nuance on the income statement regarding the GE joint venture, will there be a new line item there in the equity income being detected below the line going forward?

No. We already have that line right now for the paradigm, where we put the paradigm in the minority interest. So, we will put this through that same line. It's still exploring exact answers that Mike [ph], but that's our intent right now, and if you guys needed, I mean you could see the paradigm piece right now, and the delta will be with the GE pieces.

Yeah, okay and in my writings, it's going to run four plus million a quarter, is that sounds right ?

No, that's probably a little high, I mean right now if you are taking a look at a forecast number there... they are going have to observe about 20% of the DNA and 20% of the inventories step-ups and 20% of the integration as well. So it's more in the $2.5 million range for Q3 and Q4 and then it would ramp up to the number that you are referring to and the '09 in 2010 timeframe.

Got it. Thank you again.

Thank you, Mike.

Your next question comes from the line of Curtis Woodworth with JPMorgan.

Hi, good afternoon, guys.

Hi, Curtis.

In terms of the facility rationalization of the six plants you commented on, $0.40 of cost saving that associated with that, can you walk through the timing and when you expect all those facilities to be fully rationalize?

Sure. Let me start with the residential filtration business first. We announced the Rockford and Sheboygan plants yesterday, and those are the two large ones within resin filtration piece. Rockford, we would expect that we'd be able to get after that in about a year time frame. We are anticipating on the Sheboygan side that that's probably more than 18 month closure because of the certifications required due to the tanks in the water filtration that we are make in that particular plant. Sheboygan pieces the commercial and residential plants. So we are moving the commercial products to some of our locations locally and also overseas, as well as we move into China and Mexico on both Rockford and Sheboygan. So, call it 12 months for Rockford, about 18 months for Sheboygan. The France consolidation will be record over six months, a type of transition and the easier moves that Randy mentioned will also be within that six months time frame. There are pretty much least facilities closed to our locations, and we should be able to move the assets relatively quickly. The other large factory that we mentioned is our Cyprus, California, and that's in our industrial filtration business that probably posted the one year time frame for closure.

Okay. So, in terms of the $0.40, how much of that would be additive to the savings you identified with the GE joint venture?

I think we broke it out. Net charge is about $0.20 related to the JV and the rest related to non-JV [inaudible].

Okay. So that... that encompasses then kind of the aggregate of all these moves, the joint venture and...?

Yeah, we try to break them out [inaudible] to say, okay, $0.20 comes from the residential, but $0.16 comes from these factory and G&A structure moves and then the $0.04 comes from the bond.

Got it, I got. And then in terms of the outlook and back half of the year for the commercial and industrial segments, you are basically articulating the similar growth rate in the first half of up 10%, I guess for U.S. and Europe, can you walk us through, how that analysis was made, I mean it seems that from a conservative outlook on the global economy, the growth rates, you would think that there would may be a little bit lower or similar what you are seeing in technical products, I am just curious, what you are seeing, how your backlog is looking to give you the confidence in that number?

I mean, I think, we are pretty comfortable with the numbers we gave. I mean we have certain end markets like agricultural, certainly oil and gas, a lot of those markets are really doing well and continue to be robust. As to remind everybody, Porous Media is still a fantastic operation that we have acquired and they are benefiting from the energy and the [inaudible] as well and ahead of plan. So, we have some good tailwind in some of the end markets we're servicing. And other than what I would say... and food service continues to be stronger as well.

Yeah. Food service is a great story. I mean we are up double digits in food service, and I think by all rights and measure, I don't think the food service industry is growing right now. So, I think if the testaments are new products and our ability to gain market share, these numbers on the charts are sales, so for instance our commercial markets, we think commercial probably be down as the market, but we have new products both in water and in tech products, which we think will still allow us to grow in the single digit kind of category. Okay?

Okay. And one final question on the water margins, if you would have tried to normalize for the pool business, the incremental margins are very high there in 2Q for pool, could you give us a sense for how the water margins would have looked this quarter or said in another way, what was the margin hit from pool?

Well, it was the $7 million just from... well, if you took it all out, it will be more than $0.07 a share, and it will be more than that.

I would think of it as, our pool equipment business was roughly a 10% margin business. It is a easier math, I would just think a 30% conversion.... on the job.

If you go to page seven and you look at the lost sales, that's largely $30 million in the… and you take 30% that's $9 million and $9.642 million would have been a... we are actually been up year-over-year in margin.

I got. Okay. Great, thanks very much.

Thanks, Curt.

Your next question comes from the line of Christopher Glynn with Oppenheimer & Co. Christopher Glynn - Oppenheimer & Co: Thank you. Most of mine have been asked... hey, how are you?

Good. Christopher Glynn - Oppenheimer & Co: Most of mine have been asked, just on the price, I was thinking maybe inching that closer to two, maybe you are not getting some areas little tougher to get the price you may be anticipate a little earlier in the year?

No. I would say that in technical products, we came out of the gate, three technical products with the price increase early and as Mike mentioned we also went in within our Q2. I would candidly say I think our water businesses were a little bit more optimistic on the benefit of sourcing early in the year and by the time they got the price increases in, it was towards the tail end of Q2.

Because when they did, they did with expecting a little bit lighter inflation. So, and now we are adjusting, we will increase the price action to cover the impact of the raw materials. Christopher Glynn - Oppenheimer & Co: So more price in the second half?

Correct. Yes. Christopher Glynn - Oppenheimer & Co: Okay. And on the sourcing, what kind of start out there held it back?

I think, primarily the... there's two-fold. One is the impact of the raw materials and is not much any of us can do to control the inflation that's happening out there in certain core products, especially things like motors and that would be an area that we have lost ground on and then the second one is any time you are losing volume, you have less scale to go out and to negotiate from, and with the downturn in the volume in some of the water core markets, we are struggling a little bit with the commodity negotiations. Christopher Glynn - Oppenheimer & Co: Okay. So nothing in terms of feed on the Streeter exploring the opportunities in low cost regions or anything like that?

No. I assure you we're all over that and we will definitely, Randy, Mike, and I have all turned up to eat on that and... Christopher Glynn - Oppenheimer & Co: I agree.

The source index and we got to make faster progress here.

All right. I mean the resin, steel, motors, they are all higher so a lot of the productivity has to come with innovation to change one of the things, Mike [ph] was talking about changing the bronze in color to stainless steel, and that's a re-design we make, we have that product line, but it's a different sale for the customer. So it's just... it's a steeper help, but we got good ideas. Christopher Glynn - Oppenheimer & Co: Okay. And just one book keeping, the six facilities cited in the restructuring in the press release and the five through the GE JV, those are... there is overlap there, right?

I am sorry, say it again, Chris. Christopher Glynn - Oppenheimer & Co: Yeah. The restructuring announced in the press release showing six facilities and then in the slides five facilities related to the GE JV?

Five related to the residential filtration business plus the Cyprus, California plant is the sixth. And that's an industrial filtration. Christopher Glynn - Oppenheimer & Co: Okay. Great, Thanks a lot.

Thank you.

Chris [ph].This is Todd. We were comfortable in overtime. Just to want to check to see how many people are in the queue?

You have one more person.

All right. You go. Do that and close that.

And your next question comes from Francesca McCann with Stanford Financial.

Hi, [inaudible].

Hi, Francesca.

I'll be pretty quick here. Do you think you can walk us through any additional detail in terms of what actions you are going to take for pool?

Yeah, I will be specific and brief. I think the one area that we continue to explore is what we can do about Spa and Bath and our Spa and Bath business just like our pool equipment business is exposed to a difficult market, and we are exploring all options there from monetizing the athletes to taking a look at what we can do to more effectively run the business in its current operation. And we want to make the right economic position and our team is all over. We have a great leader who is driving the process and we continue to make progress.

What about actions related to pool non-Spa, I mean ...we've known for a long time that Spa business is not a very good business, so what about for the rest of the business?

Well. We have been aggressively taking cost out of the factories. We've maintained our investments in new product developments and actually we've increased our investment in the commercial pool area, which is actually not declined as we've seen growth in that, and it's not reading out because of the big downturn in residential. Structurally, the pool business, we owned that for ten years, this was the worst quarter in ten years, and for 8.5 of those years, the pool business was our fastest growing, most innovative, and frankly most attractive part of water. And the last 18 months has proven, it is not recession-proof, particularly after an 18-year party, but this business had in terms of growth. And, my view is as I said in the script, I think, I am expecting this business to be stronger coming out. I expect them to have a... maintain their leadership and the sales force that we have, maintain the leadership in the product innovation that we have, and to improve our share in some of the markets where we are weaker mostly in the North, which hasn't had this steeper decline as the South... in North America. So, I think we... it's the one thing I didn't mention is that the Pool has never read out as one of our great manufacturing operations. I really like to see them come out of it as being at least average.

Okay. And once we finally do so see some turnaround in the housing market, what kind of time delay do you anticipate with some uptick in... for you in pool?

My bet, and I've been through a downturn in the pool, so my bet would be as soon as the market comes back [inaudible] inventory and it could come back pretty fast. I don't anticipate that in the second half.

Right. But say another three or four quarters, you think that Pool sales would kind of be automatically correlated with an improvement in the housing market?

I think we are in from six to nine months or twelve month delay and I think housing market come back, that's been benefit our flow and filtration businesses quicker, the housing starts [inaudible] behind the new house or house within a year time frame, and we will see that lag slightly for Q4 of 2009, I think we will be the telling quarter for us and what would be the early buyers for the 2010 anticipation. And we will probably have indications of any inventory built prior to that. Will you add, Randy?

I would, but I will bet it's faster than that.

Okay. Yeah I just wanted your take on that, and then one other question, you're looking out longer term, kind of overall margin about a year, year and half ago, you had been talking about margin goal of 15%. I know that we will see more volatility coming up, but looking at adjusted margins for all of the restructuring efforts that you are putting in, where do you see kind of broken down between water and technical products margins being in near longer term?

I think as I said to you, Francesca, and said to many and all, I think our water business is a 20% plus margin business, I mean that's what our expectation is, and 15% as a point along the way, and I think the actions that we've laid out today clearly identify a pretty clear path to 15% plus, and as Randy mentioned earlier, technical products, which today is 16% has a significant amount of opportunity in global tech products, especially with electronics. So, I think both of these businesses will be high teens and heading to $0.20, that's kind of where we are hoping to drive them and that's our expectation.

And that's over the next two, three years or beyond?

Three to four.

Three to four. Okay. Alright I think that's it for me. Thank you.

Alright, thank you. Todd?

Yeah, okay Crystal [ph], thank you for helping us host the call and everyone thanks for participating on today's call. We will be around, if you have any questions, feel free to give us a call and also we hope to see everyone here in Minneapolis on September 9th and 10th for our annual investor and analyst day. Thank you.

This concludes today's conference call. You may now disconnect.