(INTRODUCTION FOR CONFERENCE CALL)

Before we begin, we call your attention to the fact that we may make forward-looking statements during the course of this conference call. These forward-looking statements are not guarantees of our future performance and are subject to risks, uncertainties and other factors that could cause actual performance to differ materially from such statements. A description of these risks, uncertainties and other factors is contained in our news release of today 's date, our most recent Form 10Q filed on August 7, 2007, and in certain of our other public filings with the SEC.

Today we're trying something new. We're providing some financial schedules to help our listeners better follow along with the prepared comments. For those of you who do not already have the document, a copy of today's financial presentation is available on our investor relations home page and webcast page at http://www.moog.com. 

Good morning. Thanks for joining us. This morning we 'll report on the fourth quarter of fiscal '07, our '07 year-end results, and we 'll update our guidance for fiscal '08.

FY '07 Total Year

Fiscal '07 was another terrific year for our Company. Sales of $1.558 billion were up 19% from a year ago. Net earnings of $101 million were up 24% and earnings per share at $2.34 were up 19% over last year 's $1.97. These results were achieved in spite of very heavy R&D expenditures on the 787. R&D of $103 million was up almost $34 million from a year ago. During the year we spent $46 million on R&D for the 787, an outlay which we believe will pay off handsomely in years to come.

In addition to the increase in R&D expenditures, our selling and administrative expense increased by $39 million roughly in line with the sales increase. Our interest expense was up $8 million. But, these cost increases were overwhelmed by an increase in gross profit of $103 million. And, of that, nearly $20 million came to the bottom line.

Q4 Results

The fourth quarter came in a little stronger than we had forecasted. Sales of $413 million were up 21%. Net earnings of $26.8 million generated earnings per share of $.62. On a per share basis, that 's a 22% increase over last year 's fourth quarter.

Now to the segments.

Aircraft Q4 '07