Before we begin the formal remarks, please note that during today’s conference call management's comments regarding Interface’s business which are not historical information are forward-looking statements. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from any such statements including risks and uncertainties associated with the economic conditions in the commercial interiors industry as well as risks and uncertainties discussed under the heading Risk Factors in Item 1A of the company’s annual report on Form 10-K for the fiscal year ended January 3, 2010, which has been filed with the Securities and Exchange Commission.We direct all listeners to that document. Any such forward looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995. The company assumes no responsibility to update or revise forward-looking statements during this call and cautions listeners not to place undue reliance on any such forward looking statements. Management's remarks during this call refer to certain non-GAAP measures, a reconciliation of these non-GAAP measures to the most comparable GAAP measures are contained in the company’s results released and Form 8-K filed with the SEC today, each of which can be found on the Investor Relations portion of the company’s website www.interfaceglobal.com Lastly, please note that this call is being recorded and broadcasted for Interface. It contains copyrighted material that may not be rerecorded or rebroadcast without Interface’s expressed permission. Your participation on the call confirms your consent to the company’s taping and broadcasting of it. With these formalities out of the way, I’d like to turn the call over to Dan Hendrix. Dan, please go ahead. Dan Hendrix Thank you and good afternoon to everyone. We are very pleased with our second quarter results. We were able to build upon the improvements we began to see in the first quarter, generating solid year-over-year growth in sales, orders, margins and earnings.
Our sales increase in the second quarter was due to largely to the ongoing recovery of the corporate office market globally. This improve within our corporate office segment is being driven by release of pent-up demand with a focus on office refurbishment, which we believe is resulting from tenant turnover as new tenants look to update their interiors. We also continue to experience a positive sales impact in the investments we made in our in-market diversification strategy as non-office segments such as retail, institutional and hospitality improved compared with last year and emerging markets made a nice sales contribution in the quarter.The revenue growth drove our second quarter gross margin expansion both year-over-year and sequentially and the combination of entry sales enhanced manufacturing efficiencies and cost reduction initiatives led to a significant improvement in operating income. Looking regionally, our Asia Pacific division once again delivered excellent results with sales and profitability up impressively year-over-year. Australia which is now our third largest market was the key driver of strength in the region with continued significant improvements across all segments. China also grew rapidly. As previously discussed, we are building a new carpet tile manufacturing plant in China to capitalize on the opportunities we see in that market. And after a few construction delays, we are on track to begin production at this facility in the fourth quarter. Our Americas moderate business had another solid performance with a third straight quarter of year-over-year sales improvement. The corporate office segment led the game with strengthening demand from financial services sector followed by the technology sector and then energy and utility sector. Non-office segments also performed well in the Americas, particularly government hospitality and retail. Moving on to Europe. We are now beginning to see some very welcome improvement. Despite relatively even sales compared with the prior year period, second quarter profitability increased as a result of greater manufacturing efficiencies in our cost control initiatives. Most encouraging about Europe is that orders climbed 20% in local currency during the quarter, setting up for a second good half. Read the rest of this transcript for free on seekingalpha.com