Thanks, Rich, and good morning, everyone. As you’ve seen in the press release we issued earlier this morning, we had a very good quarter as we set second quarter records for sales, operating margin, earnings per share. In fact, this was our fifth consecutive quarter posting new records for all three of these metrics.
Now I’ll take a few minutes to review our results.
Our second quarter sales were $581 million, up 8% year over year. Excluding the negative impact of foreign currency translation, we were very pleased with our organic sales growth of 9%. The combination of organic sales growth of 9% and a 12.9% operating margin helped to deliver a net income increase of 21%, an EPS increase of 25%, an EPS record of $0.70 per share. As you know, we have two reporting segments and I will cover the highlights for each.First, in our Engine Product segment, excluding the impact of foreign exchange, our local currency sales increased 13% over last year. The primary drivers of this 13% year-over-year increase were our OEM businesses, On-Road and Off-Road, which were up 36% and 18%, respectively. This 36% increase in our On-Road product sales was primarily due to the significant rebound in North American heavy-truck build rates at our customers.For example, for the past calendar year, Class 8 heavy-truck builds in North America were 256,000, a 66% increase over 2010. Our Off-Road product sales were up 18% as the agricultural, construction, and mining end markets we serve have continued to strengthen, thereby increasing the demand for our customers’ new equipment, upon which our new (inaudible) filtration systems are installed.We also had help from our Engine aftermarket business as our replacement filter sales were up 9% as the utilization rates of existing truck and off-road equipment fleets have continued to improve. We also continue to expand our distribution networks and product line. In fact, since our last call, we have added another 75 distributors and nearly 800 part numbers to our product offering with the majority of these adds in our emerging market businesses.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV