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With me today are Dave Berges, Hexcel's Chairman and CEO; Nick Stanage, our President and Chief Operating Officer; and Michael Bacal, our Communications and Investor Relations Manager.
The purpose of the call is to review our 2012 second quarter results detailed in our press release issued yesterday. First, Dave will cover the markets, then I will cover some of the financial details, and then we'll take your questions.
David E. BergesThanks, Wayne. Good morning, everyone. We had another great quarter, with sales up $399 million, up over last year by about 16% on a constant currency basis, or 13% as reported. Sequentially, second quarter sales looked a lot like the first quarter, but with even better margins. Plus, we had some onetime items that, combined, add $0.05 to our EPS. Adjusting out the onetime items from both periods, diluted EPS of $0.42 was 31% better than 2011. Thanks to our good execution and strong conversion on incremental sales, improved our adjusted operating income to 16.1%. This was a 210-basis-point improvement over the second quarter of 2011, with only 30 basis points coming from favorable currency impacts. We again set company records this quarter for the highest operating income dollars and percent and for adjusted net income. Now let me cover the markets using constant dollars to describe the trends. Commercial aerospace of $233.5 million for the quarter were up over 14% in constant currency from 2011, with growth in each of our submarkets. Total revenues from new programs increased by more than 30% for the quarter versus the prior year and now account for about 30% of our total commercial aerospace sales.