Keybanc notes that DCI reported Q3 results last night, they note the top-line is proving more cyclical, but tax rate, cost savings offset this. They note there were steep declines in engine markets, all businesses fell below expectations; but 25% of core sales decline held in check by impressive decremental margin control (16%). They note the co lowered guidance, but cost savings were upsized to $100 mln (from $85 mln), but it appears to be insufficient to offset demand headwinds in FY10. They are reducing their FY09 est to $1.66 from $1.75 (consensus $1.72), including a fiscal 4Q09 of $0.28 (consensus 0.35); and they are lowering their FY10E to $1.50 from $1.60 (consensus $1.77). They expect shares to be under pressure on top-line cyclicality amid premium valuation.