Andrew will now take you through the businesses and provide some additional financial information.
Thank you, Eric. I’ll turn now to segment comments, which compare the first quarter of 2012 to 2011.
Aerospace and electronics sales increased 8% to $175 million, while operating profit increased 12% to $38 million. Operating margins improved to 21.7% from 21% in the prior year. Sales in the aerospace group increased $10 million or 10% to $109 million. OEM revenue grew 14% with increases to both commercial and military customers. We saw strong sales growth to business jet OEMs and large aircraft manufacturers while sales to regional aircraft manufacturers grew only slightly.
After-market sales increased 6%, primarily driven by higher commercial repair and overhaul business. The OEM after-market mix was 61% to 39% in the first quarter of 2012 compared to a 59% to 41% mix in the first quarter of 2011.
Operating profit in the aerospace group increased by approximately $5 million reflecting good leverage of the higher sales. Market conditions in the aerospace industry remain positive despite high fuel prices. The international air transport association recently projected that global passenger demand will grow 4% in 2012, while cargo demand is expected to turn up slightly in the second half. We expect to benefit from higher OEM build rates, increased sales from new products as outlined on investor day, and an expanded global sales force.
The electronics group sales increased $3 million or 5% to $66 million. Electronics operating profit decreased approximately $1 million as operating margin returned to a more normal mid-teens level from a higher margin in the prior year due to product mix. In 2012, we continued to forecast reasonably stable results from the electronics group with growth in our commercial business expected to offset a slight decline in defense-related sales.
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