Let me turn now to the performance of each of our segments.

Aircraft sales for the quarter of $97 million were up 6% from last year, or $5.4 million. This increase, though, is the net of a $13 million increase in military aircraft sales, offset by an $8 million decline in commercial. Military aircraft sales rose 29% to $58 million. The major drivers were the new Joint Strike Fighter contract for $6 million and an aftermarket increase of almost $4 million. On the other hand, commercial aircraft sales declined to about $39 million. OEM deliveries to Boeing decreased by almost $7 million, and our commercial aircraft aftermarket, running at 89% of the sales level in last year’s fourth quarter, declined by $1.6 million.

For the year, aircraft sales of $359 million were up 6% compared to last year. But, as in the quarter, we experienced a big swing in mix. Military aircraft sales were up 28% to $202 million. This is a $44 million sales increase. $18 million of that was in military aftermarket revenues, another $10 million in the F-35 Joint Strike Fighter, and then smaller increases in revenues on the F-18, the F-15, the Blackhawk Helicopter and in our engine business.

Offsetting the $44 million increase in military aircraft was a $25 million decline in our commercial airplane revenues. Sales to Boeing Commercial declined by $12 million from $72 million to a little less than $60 million. Airbus was down $2 million to $11 million. Our aftermarket revenues were down almost $7 million to a little over $50 million and our sales for regional aircraft and business jets were down slightly.

All in all, for the year, our aircraft business came out pretty damn well. The increase in military aftermarket that we projected came through about as planned. OEM sales to Boeing were down about as expected. The decline of 12% in commercial aftermarket was less than we feared.

The other very important aspect of our aircraft business is margin performance. In the fourth quarter, margins were close to the 20% level of the previous quarter. For the year, we came out at 18.2%, which is, under the circumstances, spectacular.

So, the aircraft business is our good news story. It’s almost exactly 50% of our business. Overall, both sales and margins came in higher than we’d forecasted.

Our very good fortunes in the aircraft business were offset somewhat, both in the quarter and the year, by disappointing performance in our Space segment. Sales for the quarter were $22.8 million, down almost $4 million from the similar quarter last year. We had gone into the quarter thinking that we might do almost $29 million and come within striking distance of our $114 million target for the year. As it turned out, we came in at $107 million for the year, well short of our target, but still up 4%, or $4 million, from the year previous.

The shortfall in the sales in the fourth quarter had four components. The first is simply a delay in deliveries of space products to our customers in Japan. The delay was the result of technical issues which have since been resolved.

The second item has to do with our refurbishment program on controls for the Space Shuttle Orbiters. Sales for the quarter were $2.5 million, down $1 million from levels achieved in earlier quarters. We had anticipated that that activity would be increasing instead of declining. However, some of the resources that might have been employed on the Shuttle Program were actually devoted to programs in the Aircraft Segment which, in part, accounts for the increased sales in Aircraft. So, sales come out of Shuttle in the Space segment and shows up in Aircraft. In our overall results, this phenomenon has no adverse effect – but it reduces sales in Space.