Salesgrowth would have been approximately 14 percent compared to last year'ssecond quarter without the negative impact of

Salesgrowth would have been approximately 14 percent compared to last year'ssecond quarter without the negative impact of exchange rates. Foreignexchange did not have a significant impact on net earnings. Earningsbenefitted from cost control actions, offset by the effects of thedecline in sales volumes.Special Charges SummaryWorkforce management $ 14,254Vacated facility impairment 905 --------Restructuring and special charges15,159Inventory write-downs 1,255Other charges 191 --------Total special charges (pre-tax)$ 16,605 ========After-tax earnings per share impact$ 0.16 ========Inventory write-downs relate specifically to order cancellations and areincluded in cost of goods sold.All of the items shown above relate toactions taken as a direct result of the current economic downturn.Net sales for the six-month period were $679.4 million, up 18percent from $577.8 million for the six-month period last year. Netearnings for the six-month period were $45.5 million, or $0.66 per share,compared with $55.0 million, or $0.79 per share, in last year's six-monthperiod. Net earnings for the current quarter included special charges of$0.16 per share, as detailed above.

Exchange rates had a negative impactof approximately 3 percent on net sales and approximately $0.04 per shareon net earnings for the first six months of fiscal 2009."Sales this quarter were consistent with our expectations during thisstage of a challenging business cycle, and our results reflect timelyactions to control costs and improve cash flows. We have takensignificant steps to size our businesses for this environment to meet ourprofitability and cash flow objectives while continuing to pursueselected long-term organic growth opportunities. Further, our AirframeSystems integration and profit improvement initiatives are alsoproceeding consistent with our expectations," said Chairman and ChiefExecutive Officer Thomas A. Gendron.Quarterly Segment ResultsTurbine SystemsTurbine Systems' segment net sales for the second quarter were $157.8million, an increase of 7 percent from $147.5 million for the secondquarter a year ago. Segment earnings for the second quarter increased 12percent to $34.8 million from $31.0 million for the same quarter a yearago.

Segment earnings as a percent of sales were 22.0 percent thisquarter compared to 21.0 percent in the same quarter for the prior year.Our sales performance reflected strong demand for our industrialofferings, partially offset by a decline in demand in the business jetsegment of the market. Commercial and military aerospace sales, excludingthe business jet segment, were generally consistent with the prior year.Engine SystemsEngine Systems' segment net sales for the second quarter were $92.5million compared to $125.8 million for last year's second quarter, adecrease of 27 percent. Segment earnings for the quarter decreased 41percent to $7.7 million from $13.0 million for the same period a yearago. Segment earnings as a percent of sales were 8.3 percent this quartercompared to 10.3 percent in the same quarter last year. The sales declinewas experienced broadly across the power generation and transportationmarkets.

Exchange rates negatively affected net sales by approximately $4million but the impact on segment earnings was not significant whencompared to the prior year. While profitability was affected by thesignificant decline in volumes, our cost reduction actions substantiallylimited the decline in earnings.Electrical Power SystemsElectrical Power Systems' segment net sales for the second quarter were$58.5 million, a decrease of 10 percent from $64.9 million for the secondquarter a year ago. Without the negative effects of exchange rates, saleswere flat compared to the second quarter a year ago. Segment earnings forthe quarter were $9.1 million compared to $9.5 million for the samequarter a year ago. Segment earnings as a percent of sales increased to15.6 percent this quarter compared to 14.7 percent for the same quarterlast year.