At this time, if you would reference Slide #2 in the slide deck, which is the Safe Harbor disclosure statements, which addresses forward-looking statements. If you haven't done so already, would you please take note of this statement in its entirety.Moving to Slide #3, this slide, as required, indicates that in cases where non-GAAP numbers have been used, they've been reconciled to the appropriate GAAP numbers and are posted on Parker's website as well. To cover the agenda for today, on Slide #4, the call will be in 4 parts. First, Don, Chairman, Chief Executive Officer and President, will provide highlights for the quarter. Second, I'll provide a review, including key performance measures of the first quarter, concluding with the revised fiscal year '12 guidance. The third part of the call will consist of the standard, the question-and-answer session. And for the fourth part of the call today, Don will close with some final comments. So at this time, I'll turn it over to Don and ask that you refer to Slide #5, titled First Quarter Fiscal Year '12 Highlights. Donald E. Washkewicz Well, thanks, Pam, and welcome to everyone on the call. To start the call, I want to take a moment to just point out some of the highlights for the quarter. As you could see from the press release, we're off to a great start for fiscal 2012 and I wanted to, first of all, just recognize our global team for delivering just another outstanding quarter performance for the company. So here's a few of the records that we had for the quarter. Sales were a first quarter record, all-time record of $3.2 billion and that was a 14% increase over last year's quarter. And of that, of almost 11% was organic growth of that increase. Orders increased 9% compared with the first quarter last year. We're able to drive very strong profitability levels through our total operating margin from our total segment operating margin that reached an all-time quarterly record of 16.1%. And that was driven by North American industrial margins at 18.5%. So very strong activities on the margin level on those 2 areas.
Our incremental marginal return on sales was 20% for the quarter, and that's better than the first half forecast that we had given you on the guidance, which was about 16%. Again, we still have a quarter to go. So that could trend down a little better, maybe remain around 20%, but we're pretty pleased with where we started the year as far as our incremental margins so far. Net income was also a record quarterly -- or quarterly record at $298 million. And that increased almost 20% and our net income margin was a record 9.2%. I think our last record was in the 8% somewhere, 8%, somewhere between 8% at 9%.Diluted earnings per share were above guidance and represent an all-time record of $1.91 and that was 26% increase from last year's quarter. We continue to build a very strong financial position, operating cash flow for the quarter was about $309 million or just close to 10% of sales. So very strong cash flow generation for the company. Due to the depressed market conditions and price of our shares, we were active in repurchasing our own stock. We repurchased 4.4 million shares in the quarter and that was close to $300 million worth of Parker's stock. And that's on top of the 700 million approximately that we did last year for a total of around $1 billion in the last year or so. So overall, we're very pleased with our strong start to the fiscal year 2012. We remain in extremely strong position to drive record performance throughout the balance of this fiscal year. We've increased the guidance. As you could see, we had a midpoint before when we started the fiscal year $7.10, we increased that to $7.55 now. And that represents a 19% increase in earnings at the midpoint and would represent another record year for the company. So we're on a pretty good half here to set another record. Our increased guidance reflects our strong first quarter. Of course, there's a lower share comp because of the repurchases in there but also continued growth based on our order entry trends and so forth that we see, continued growth for the full fiscal 2012. So now I'm going to turn it back over to Pam and she's going to go on a little bit more detail for you. Read the rest of this transcript for free on seekingalpha.com