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After completing those reviews, we’ll open up the call for your questions and comments.We will be using a slide presentation as part of today’s call. That presentation can be viewed by accessing our investor relations website on sigma-aldrich.com. Before we begin these reviews, I do need to remind you that today’s comments will include forward-looking statements about future activities and our expectations for sales, earnings, cash flow and other possible future results. While we believe that these expectations are based on reasonable assumptions, actual results may differ materially due to any number of factors including the risk factors listed in our annual report on form 10K for the year ended December 31 st, 2009 and in the cautionary statement that is included in today’s release and in our slides. We’ve no plans to update these forward-looking statements after this conference. Also we do provide information on non-GAAP financial measures covered in today’s conference. That information which consists of currency-adjusted sales growth, profit and EPS results on both a profoma and reported basis and pre-cash flow reconciled and net cash provided by operating activity is also contained in today’s release which is posted on our website. Now I’ll ask Rakesh to begin our review; Rakesh? Rakesh Sachdev Thanks Kirk and good morning everyone. Our second quarter sales were $554 million, a reported increase of 6% over last year’s second quarter. Excluding a small currency head wind our organic growth was 7%, improving on the 4% organic growth we reported for 2010’s first quarter. This increased growth rate came from improved performance of both our research and fine chemicals businesses. Our net income, which hit the $100 million mark for the first time in the company’s history just one quarter ago, remains strong at $97 million for the second quarter. This is a 16% increase on a reported basis and an 11% gain on a currency adjustment basis from last year’s second quarter.
Diluted earnings per share for the second quarter was $0.79. This EPS includes a $0.04 benefit from currency that was partially offset by a $0.02 restructuring charge. Excluding those items, our net income and diluted EPS for the second quarter both grew by 13%.There was a positive impact of currency on our earnings in the second quarter despite a modest negative income on our sales growth. As we have told you previously, this difference is largely a result of where our products are produced and ultimately when and where they are sold. While the differences in foreign exchange rates have an immediate impact on local currency sales, there is a lag effect on earnings of approximately four months. Since the dollar strengthened in the second quarter, we are likely to see some head wind on our earnings in the third and fourth quarter. At current exchange rates the head wind on diluted EPS in the second half of the year is likely to largely eliminate the $0.10 benefit we realized in the first half of 2010. The $0.02 restructuring charge relates to the consolidation of some of our facilities and the cost to eliminate about 130 positions to date through a small workforce reduction. This is part of our previously announced restructuring action meant to increase the efficiencies of our operations and lower our overall fixed cost structure. We expect to record additional cost approximating $17 million related to these actions in 2010 and 2011. While these restructuring charges reduced our otherwise reportable EPS in the second quarter by $0.02, the benefit of these restructuring actions when fully implemented should add about $0.10 to our annual EPS. And finally, our free cash flow in the second quarter of $77 million was a 5% improvement over that achieved in the last year’s second quarter. Looking at our first half results for 2010, our sales have grown organically by 6% and we’ve achieved double digit growth in earnings and free cash flow compared with last year. Read the rest of this transcript for free on seekingalpha.com