Now the meeting will be turned over to Mr. Edward F. Crawford, Chairman and Chief Executive Officer.Edward Crawford Good morning, ladies and gentlemen. Thanks for joining us today as we review the second quarter 2010 Park-Ohio results. I'd like to turn the presentation over to Matt Crawford, President and COO of the company. Matt? Matt Crawford Thank you and good morning. The second quarter 2010 performance continued to show not only substantial improvement over the same period during 2009, but also improving trends in this quarter. Versus a year ago, revenue was up 21% to $198 million. The improved revenue environment was especially notable in our Supply Technologies and general Aluminum businesses, although business conditions are improving in our Manufactured Products as well. Earnings improved just over 4% to $3.4 million or $0.29 a share, but this improvement is somewhat understated given the effect of the $3.1 million of earnings associated with the company's repurchase of sub-debt during the second quarter of 2009. Cash performance has also been strong, allowing for net debt to be reduced by over $20 million so far this year. Looking at Supply Technologies, our Supply Tech revenue improved 25% year-over-year due to increasing build rates in most end markets. Notable improvements included heavy duty truck, consumer electronics, semiconductor, auto and the industrial equipment end markets. Second quarter revenue trend in the supply chain business also improved with the average daily sales reaching 1317 versus average daily sales in the first quarter in the supply chain business of 1295. Supply Technology earnings increased 84% by $5.3 million, a margin of 5.5%. Recovering volumes were primarily responsible for this increase. Although we are operating the business with some cautious optimism, we also recognize the precarious foundation upon which this nation's economic recovery is being built. General Aluminum, revenue continued to benefit from the resurging auto industry, growing 74% versus last year. Including this improvement was an additional new block of business that was kicked off in the second quarter. EBIT improved to a positive $2.3 million from a loss last year and also improved 20% plus from the first quarter. Although we are still not achieving target margins, the increased utilization and product mix is benefiting our results meaningfully.
In our Manufactured Products Group, revenue trailed last year's performance just slightly with revenue of $63.5 million. More instructive though is the improvement from the first quarter of 4.4%. This increase in revenue was due largely to an improving capital equipment environment. In fact, June was the largest equipment bookings month in almost a year.Offsetting some of this good news was the continuing softness in locomotive builds, a key end market for our forging business. Earnings of the manufactured products group was down to $7.6 million, reflecting the relative softness versus last year's second quarter in the equipment business. But this number reflects a significant uptick from the first quarter earnings of $4.9 million. We are optimistic that this segment will continue to build momentum as global industrial companies increase productions. Turning to our balance sheet, perhaps our most outstanding achievement year-to-date is generating over $21 million in cash to reduce net debt to $289.7 million. I want to compliment all of our operating team on excellent working capital management and CapEx discipline. Our availability on our senior credit facility now stands at over $45 million. In closing, we're happy to report we're slightly ahead of where we expected to be in this tepid economic recovery. We are cautiously optimistic going into the second half. Based on this, we are increasing our sales guidance to $780 million and earnings per share guidance to $0.85 to $0.95 per share. Thank you very much. Edward Crawford Thanks, Matt. Just a couple of comments. We have talked in the most recent gatherings on preparing the company for the future, making all the tough changes when the economy really hit the floor in the first quarter of '09. We thought we had the company prepared; we do. Read the rest of this transcript for free on seekingalpha.com