Richard TobinThank you, Gerry. Good afternoon everybody. We'll move to slide four which is the highlights of the quarter. Net sales of equipment that was $3.9 billion which was rounding up 11% in the second quarter and $7.2 billion up 8.5% for the first six months, so there was an acceleration in the top line in Q2 vis-à-vis Q1 which we had expected based on historical results of CNH. And equipment up 4.5% in the second quarter and 3.4% in the six months construction up 44.5% in the second quarter and 36%, so both product lines as I mentioned earlier accelerating in Q2 vis-à-vis Q1 so some reasonable performance in terms of the top line and tracking towards what our full year estimates were from these strategic business plan for the year 2010 to deliver it in April of this year. Equipment operations, operating profit of a $169 million compared to Q2 2009 and $274 million compared to six months in 2009. The operating margin for the quarter at 8.4% is compared to 4.5% in the comparable quarter of first half operating margin is at 6.6% which is at the upper end of what our drivings once back in April. So, that's a reasonably good side in terms of tracking performance for the full year. We expect just as an overall comment on Q2 in terms of results, we expect Q2 to be good form the seasonality point of view, its strong; it's into the buying season. On the [Ag] side, we can talk about the balance of the year in Q3 especially where Q3 historically being a little bit of a weaker quarter because of seasonal demand and production shutdown so is pleasing to the group to have a relatively strong quarter in Q2, so it allows us some headroom based on our full year results.
Equipment operations net cash position increases by $800 million for the first six months and then you can see at the bottom of the slide EPS before restructuring and exceptional items of $0.59 a share and year-to-date of $0.75 a share. This particular quarter we had an exceptional item that was a credit to EPS, so that's where you see the difference between $0.59 and $0.60 in the reported figures and that was the recognition of a gain on sale of our participation and what the LBX joint venture that we have the Sumitomo that was concluded at the beginning of the quarter.Move to slide 5 please. This is basically what I just went over in terms of the highlight, so this is just so you can a take a loot at it and just refer to you again that the $0.59 is before the exceptional gain, and is comparable to the $0.06 loss in the prior period where we had taken a $147 million restructuring charge in a comparable quarter in the prior year. So, overall for the quarter just on the phase of the income statement a reasonably good performance and again on track in terms of what we had told all of you in April as part of our five year strategic plan for the year 2010. Next slide please. It's a graphical view of net sales by geographic region for the quarter, I don't think there is any real surprises here in terms of the performance from the geographical basis year-over-year, the US had a very good quarter specially on the Ag side and that's where a lot of the quarter-to-quarter performance of the increase was in US. Western Europe continues to be weak from both AG and CE and we can talk about that I think more in the Q&A. Latin America still performing strong and the rest of the world markets which we'll cover in a little bit more detail and the balance of presentation, improved performance Q2 vis-à-vis Q1.
So rounding up at 10.7% to 11% on a reported basis, reasonably good performance, the group's ability to as a global not only supplier but manufacturer of agricultural and agriculture equipment allows us to weather some pretty difficult market conditions in Western Europe. Next please.What you have here is second quarter net sales and operating profit review. We can go some more detail as probably in the Q&A is probably with a handle it but you see basically year-over-year performance that call your attention to the far right bar in the quarter, the construction equipment making a profit in this in the first profit in since 2008, I think the third quarter of 2008, so quite pleasing there and that is really a reflection of some amount of increased demand. And on a percentage basis, a significant amount, but lets be reasonable back to 2006 through 2008, still demand is reasonably weak, but is more a reflection on our ability to liquidate inventory and the benefits of restructuring that we have taken in prior periods. Read the rest of this transcript for free on seekingalpha.com