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I'll now turn the call over to Mr. Al Rankin.Al Rankin Good morning to all of you. As I think you all are probably aware of NACCO announced its earnings last evening. Net income was $15.9 million or $1.91 per share in the second quarter on revenues of about $599 million that compares with net income of 1.6 million or $0.19 a share on revenues of about 540 million in the year ago second quarter. At NACCO materials Handling Group net income was $7.3 million, revenues 413 million compared with a net loss in the second quarter of $3.1 million and revenues of 362 million. Operating profit improved substantially to 9.8 million from a loss of 1.7 million in the year ago quarter. Revenue increase 14% compared with the 2009 quarter primarily as a result of an increase in units and parts volume in the America and in our EMEA, Europe, Middle-East and Africa markets. Shipments in the second quarter increased to 13,800 units from 11,100 in the first quarter and 9900 units in the year ago second quarter. The backlog was approximately 21,700 units at June compared with 16,900 a quarter ago March 31 and 13,200 at the end of last year and 12.,300 at the end of the year ago second quarter of June 30. The second quarter net income increased significantly compared with 2009 primarily as a result of a substantial increase in operating and a change in effective income tax rates. Operating profit increased 11.5 million, primarily due to improved gross profit attributable to higher sales volumes and margins of both units and parts and lower manufacturing variances which resulted from higher production levels in 2010. The improvement in operating profit was partially offset by an increase in employee related expenses which resulted from the partial restoration of compensation and benefits which were reduced in 2009 and higher product liability expense, primarily due to a smaller favorable adjustment in 2010 compared with the amount in 2009.
Finally, in the second quarter, the company had a reduction in the blended income tax rate compared with the second quarter 2009, primarily as a result of a shift in the mix of jurisdictions where pre-tax results are projected for 2010 compared with 2009.Looking forward, NACCO Materials Handling Group expenses global market levels for units and parch volumes to improve significantly in the second half of 2010 compared with the second half of 2009. The Chinese market in which NACCO Materials Handling Group is not a significant participant has recovered to prerecession levels and is expected to continue to grow and the company's largest market, the America's, the Brazilian market also appears to be more robust than originally anticipated and Latin America and the critical North American markets appear to be improving with moderate growth expensed in these markets over the second half of 2010. Recoveries are also expected to be stronger in Eastern Europe, Middle East and Asia than in Western Europe which is expected to be relatively flat in comparison with 2010. As a result, the company expects substantial increases in bookings, unit shipment levels, backlog and parch sales in 2010 compared with 2009 with significant comparative increases each quarter over the prior year quarter. NMHG anticipates further increases in material cost, particularly steel in the second half of 2010 as a result of price increases. As a result price increases were announced during the second quarter of 2010, which in combination with additional increases if necessary are expected over time to offset the effective increase of commodity costs. NMHG's new electric-rider lift truck program and warehouse, internal combustion engine and big truck product development programs are progressing as planned. The new electric-rider lift truck program is bringing a full line of newly designed products to market and NMHG introduced the 2 and 3-ton four-wheel electric lift trucks in Europe in early 2010 and a 1 to 2-ton three-wheel electric cushion-tire truck and a 1 to 2-ton four-wheel electric pneumatic lift truck in the Americas during the second quarter of 2010. Read the rest of this transcript for free on seekingalpha.com