So looking first at the topline, our revenues were down 4.5% in local currencies versus a year ago. It’s actually down 1% again in local currencies sequentially versus the first quarter of 2012.
We generated again record high gross profit margin of 30.8%. Our performance operating income reached $92.8 million which hits to the margin -- record margin again the 14.6%.
Our performance EPS ended up by $1.19 per share versus $1.23 a year ago, generating a free cash flow of $56.6 million, leading to a conversion rate of 72% for Q2 and when you look at the first half we also saw a 87% conversion rates. We return the majority of that cash $52 million to shareholders, we do repurchase of 963,000 shares. And although at this stage we are maintaining our full year 2012 guidance.
Turning to page four, as we do usually we are full of deep dive a little bit more into sales and markets dynamics. Starting with the channels. Revenues from the OE channel went down 9% year-over-year, 5% sequentially versus Q1 2012, mostly driven again by the strong decline of production in emerging markets.Aftermarket was up only 1%, having to actually compensate a 7% decline in Europe and that’s again mostly when taking Southern Europe. And that was again offset by growth in other parts of the world like Americas, India, China. Sales to joint venture was up 39%, [exceeding] and supporting the growth of our commercial vehicle production in the U.S. Now looking at the evolution of revenues fro WABCO versus the dynamics of the markets in the main regions of our world, starting with Europe, production in Europe was down 7% year-over-year, but up 7% sequentially versus Q1. In the meantime our revenues were down 9% and this 2% underperformance was actually with the two main shorter causes, one is, the fact that last year we were still manufacturing in Europe and economy fell in Europe from pressures that were shift to North America to support one of our old customer, this year we have actually transferred production to North America and those revenues are accounted for now in North America not in Europe anymore. Read the rest of this transcript for free on seekingalpha.com
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