With that, I'll turn the call over to Scott.Scott Donnelly Thanks, Doug, and good morning everyone. We're pleased with the solid resumption of top-line growth in the quarter, reflecting expansion of our defense business and recovery in our early cycle markets. While the pace of the recovery remains uncertain with the European sovereign debt concerns having negatively impacted business and consumer confidence during the quarter, we do believe the ability of our businesses to generate profits and cash in the cycle is apparent in our second quarter results. So let's take a look at how that played out in our businesses, starting with Industrial where revenues were up about 30%. We continue to achieve good conversion on this revenue growth, as we posted a segment margin of 7.7%, which reflects the positive impact our cost reduction programs are having. At the same time, we're also focused on new product development to drive growth. For example, during the quarter, we introduced EZ-GO's new low-speed road vehicle, the 2Five. 2Five is a zero-emission electric vehicle that meets regulatory standards for use on 35 miles an hour and under public roads. We believe the EZ-GO brand will work well in this market and customer demand during the product's introduction launch has been positive. With the public attention on energy conservation, we believe this will be a good growth opportunity for us that leverages our current capabilities. Moving to the Finance segment, we had another good quarter of liquidations. If you look at slide four in the presentation, you can see that we reduced managed receivables by $674 million, bringing our total reductions since the beginning of 2009 to $5.2 billion. Distribution finance was the largest share of reduction again with $203 million. Also, $120 million of liquidations were generated from our timeshare business, which is also a positive continued future success of our liquidation plan.
As we look at the rest of the year, we're increasing our total 2010 liquidation target from $1.8 billion to $2 billion, which will bring us to a two-year reduction of nearly $6 billion.Looking at slide five, the cash conversion on finance asset liquidations came in at 87% for the quarter, bringing our year-to-date rate to 91%. We now expect our full year cash conversion rate will trend into the mid to high 80s. In terms of credit performance, we saw a reduction in 60-day delinquencies from $515 million to $385 million and a reduction in non-accrual finance receivables from $1.03 billion to $876 million primarily due to the resolution of several accounts for restructuring and repositioning activities. Charge-offs were $57 million, up from $31 million in the first quarter as previously reserved losses were realized. Moving to Cessna, results were in line with our expectations as we delivered 43 jets, 23 light to mid-sized and 20 Mustangs. As a result, Cessna returned to profitability and positive cash flow for the quarter. Business jet usage continued to expand. Our average daily utilization reached to 0.68 hours from about 0.66 hours in the first quarter. The FAA rolling three-month averages for takeoff and landings were up in both April and May. Our due date will probably be out shortly. Correspondingly, Cessna aftermarket revenues were up nearly 20% in the quarter on a year-over-year basis. On the used front, the number of previously owned Cessna's available-for-sale remained flat with last quarter at 15.1% and used pricing remained relatively stable with the exception of some further weakness in older models high-usage aircraft. On the order front, as expected, we had a number of cancellations, which included the cancellation of a large Mustang order from a European fleet operator. On the other hand, gross orders increased from the first quarter. And most of these orders were for light to mid-sized aircraft, so we actually had a positive order contribution backlog on a dollar basis. Read the rest of this transcript for free on seekingalpha.com