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This morning, we will be discussing forward-looking information that involves risks, uncertainties and assumptions that could cause our actual results to differ materially from the forward-looking information. A discussion of some of those factors that either individually or in the aggregate, we believe could make actual results differ materially from our projections, can be found in our cautionary statements under Item 1A, Risk Factors, of our Form 10-K filed with the SEC on February 22 of this year. And also on our forward-looking statements language contained in today's release.Okay this morning I will start by summarizing our third quarter financial results, the increase in our outlook for 2011 and our preliminary outlook for 2012 sales and revenues. Earlier today, we were happy to report a record breaking third quarter. Sales and revenues were $15.7 billion and that was an all time record the best quarter ever in our history. Now the quarter did include $1.1 billion in sales and revenues from our recent acquisition of Bucyrus. Excluding Bucyrus sales and revenues were $14.6 billion and that was also an all time record. Profit was a $1.71 per share in the quarter and that did include a negative impact of $0.22 a share related to Bucyrus. Excluding Bucyrus profit was an all time record at a $1.93 per share. The $0.22 impact from Bucyrus included acquisition related expenses of a $160 million for the inventory step up and a $122 million of deal-related and integration costs. Now the inventory step up will continue in the fourth quarter and there will be more deal-related costs, but much less in total than the third quarter. There is a good summary of Bucyrus related impacts in our financial release and its on page 15; it’s in the table in the Q&A. Now one other point on Bucyrus when you review our financial results by segment remember that Bucyrus is in resource industries. And when you review our sales by geographic region remember that Bucyrus impacts every region.
Now to help you understand that impact, we broken up Bucyrus sales by region in our discussion of resource industries on page 10 of the release. Because of the size of Bucyrus to keep the discussion apples-to-apples will compare our third quarter 2011 results excluding Bucyrus with our total third quarter 2010 results. And again at 14.6 with out Bucyrus it was a record quarter up 31% from a $11.1 billion a year ago.Sales and revenues were up in every geographic region with North America up 25%, Latin America 20%, Europe Africa Middle East up 41% and Asia Pacific up 38% and again those exclude Bucyrus. Now in terms of the timing of the sales increase and the backlog growth it was reasonably consistent as we went through out the quarter. Now speaking of the order backlog for all products other than Bucyrus it rose a 11% from the end of the second quarter in June from about $21.9 billion to $24.4 billion at the end of the third quarter. And it’s about 40% higher than it was at the end of the third quarter a year ago. Now Bucyrus backlog grew from about $3.5 billion at the time of our acquisition in July to $4.2 billion at the end of September. Now moving on to the results price realization was $129 million and that is up close to 1% and above as we expected. Manufacturing costs were up $330 million and of that period or fixed manufacturing costs were the most significant driver and the primary reasons for that increase were our volume increase, the investments that we’re making in capacity and the increases in our short-term incentive compensation. In addition to the period costs material and freight were also somewhat higher. Now SG&A and R&D costs were up $82 million in the quarter, that’s about a 6% increase in costs on our 31% increase in sales. We think that’s pretty good cost control and as a percent of sales SG&A and R&D declined. Read the rest of this transcript for free on seekingalpha.com