John V. FaraciThanks, Glenn, and good morning, everybody. Yes, let me just start by saying we're pretty pleased, very pleased with our third quarter results. I think the $0.92 a share reflects the global balance of International Paper. Our focus businesses continue to produce strong earnings and free cash flow. Basically, it was steady volumes and a weak economic environment, stable pricing, outstanding operations, very strong contributions from our joint venture in Russia. We also set input cost escalation and achieved costs of capital returns. And if you think about our earnings, they're substantially up from the second quarter. And adjusting the third quarter 2010 for a land sale, they were up 11% relative to the third quarter of last year. This next chart here just shows what I mean about balance in the global portfolio. We had strong contributions from both our Paper and Packaging businesses. And as you can see, 30% of our operating earnings are coming from the platforms we have outside North America that have a lot of volume revenue and earnings growth in them. EBITDA margins improved across all our global manufacturing businesses, up strongly 300 basis points from where they were in 2010. And again, that just sets the stage for -- I think underscores International Paper's ability to perform in a challenging economic environment. So with that, it's just a brief introduction. I'll turn it over to Tim to go through the business Timothy S. Nicholls Okay. Thanks, John, and good morning, everyone. I'm on Slide 7, and I wanted to start out by saying that we had, as John said, really strong results in the quarter and what's been a difficult environment. The third quarter of last year has been adjusted for the land sale. You can see revenue is up nearly 2% versus same time last year. Margins continue to remain very solid and cash has been strong, up from the second quarter and very close to the third quarter last year, even with $130 million more in capital investment in the third quarter of this year than last year. Cash balance grew from the end of last quarter this quarter by another $300 million. If you look at the second quarter versus third quarter earnings performance, a strong quarter in a tough environment, price and volume basically flat despite the weak backdrop. Volume was weaker earlier in the quarter and then showed some improvement as we moved toward the end of the quarter. Operations continued to improve after a very strong performance in the second quarter, so the facilities are running extremely well at the moment. We did have a lighter maintenance outage schedule but we executed it extremely well. And the tax rate was slightly lower because of a couple of discrete items in the quarter that won't repeat in the fourth quarter.
Just turning to our year-over-year performance, and I think this is a real story of improvement. If you take out the land sales from last year, $0.83 versus the $0.92 that John mentioned, price offset softer volume. And really, as I mentioned on the operations, operations and cost management have completely offset the higher input costs that we faced year-over-year. Lower interest and taxes, along with another quarter of really strong results from Ilim added headroom.If you look at the next slide, I think what's even more impressive are the year-to-date results from continuing operations: Top line growth of 7%, EBIT growth up 56%, a doubling of EPS and a 50% improvement in cash provided by operations. And if you look at the cash balancing, again, these numbers from last year have been adjusted for land sales, about $1.2 billion in cash last year and up to $2.7 billion this year, 125% improvement. Of course, the building of cash, in part, because we're looking to bring cash to the Temple close. Read the rest of this transcript for free on seekingalpha.com