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We will begin this morning with remarks from Thomas Gallagher our, Chairman, President and CEO, Tom.Thomas Gallagher Thank you Carol, I would like to add my welcome to each of you on the call today and to say that we appreciate you taking the time to be with us this morning. As we customarily do Jerry Nix, our Vice Chairman and Chief Financial Officer and I will split the duties on this call, and once we have concluded our remarks we will look forward to answering any questions that you may have. Now early this morning we released our second quarter 2010 results and hopefully you've had an opportunity to review them. But for those who may not have seen the numbers as yet, a quick recap shows that the sales for the quarter were $2.847 billion, which was up 12%. Net income was a $124.5 million, which was up 20% and earnings per share were $0.78 this year compared to $0.65 in the second quarter of 2009 and the EPS increase was 20%. After being up 6% in sales and 13% in earnings in the first quarter, we were pleased to show continued improvement and further strengthening in our results in the second quarter. That now puts us up 9% in sales for the 6 months and up 17% in both net income and earnings per share on a year-to-day basis and we feel that we are in a good position at the halfway point in the year. And looking at the second quarter results by business segment; our two industrial related businesses continue to generate strong increases. Motion Industries, our Industrial Distribution segment was up 26% in sales in the quarter and EIS, our electrical distribution business was up 32%. Now a portion of the Motion increase is attributable to the BC Bearing acquisition that was completed on March 1st of this year. We mentioned this in our last call and the addition of the BC Bearing operations has strengthened our position in Western Canada and the Northwestern part of the U.S. We're pleased with the early results from this acquisition.
We're also pleased that the on-going or underlying business at Motion was up a very solid 18% in the quarter and then looking at the results in a bit more detail, we see a consistent pattern of sales improvement, both geographically and from a product and customer perspective as well.Our top 12 product categories were up over 20% with every category showing a double digit improvement and our top 10 customer segments were also up over 20%. So we feel that we are seeing a broad and balanced performance within our industrial business which gives us reason for optimism as we look towards the remainder of the year. Our results in the electrical segment were also up, netted by a small acquisition that was done at the beginning of the year as well as the increase in corporate pricing but the underlying business for EIS was up 22% in the quarter which we feel is a very strong performance. And as with our industrial business, the increase is broad based and fairly consistent across their product and customer categories, which is encouraging. Both Motion and EIS sell into the manufacturing segment of the economy which continues to perform well right now. Industrial Production, Capacity Utilization and Purchasing Manager's Index all remained positive and encouraging, despite some recent moderation. As you will recall, these industries have historically been six to nine months leading indicators for industrial and electrical businesses and at the current levels, they present an encouraging picture throughout the remainder of the year. Moving onto Automotive, we're pleased to see continued stability and improvement in this segment of our business. Our Automotive operations were up 7% in the second quarter, and this follows 6% improvements in the first quarter of this year and the fourth quarter of 2009. So we feel that our Automotive segment has firmed up and it is moving in the right direction. Read the rest of this transcript for free on seekingalpha.com