Before we begin, I need to inform you that during this call, we may make forward-looking statements, which involve risks and uncertainties as detailed in our 10-K. Our actual results may differ significantly from the matters discussed today.Now, moving on to our results, Tim Manganello, Chairman and CEO, will comment on the third quarter and current industry trends and then Robin Adams, our CFO, will discuss the details of our operating results and also our outlook for the rest of the year. With that, I'll turn it over to Tim. Timothy M. Manganello Thank you, Ken, and thank you everyone for joining our call. Today, I’m very pleased to review our third quarter results, our accomplishments and our revised guidance. But first, I’d like to comment on current production volume concerns within the investment community. In recent weeks, uncertainty about the world economy particularly in Europe has created nervousness and has caused speculation about vehicle production in certain parts of the world. In July, before this issue surfaced, we raised our 2011 sales and earnings guidance, and today we refined our guidance to the high end of that range at $4.35 to $4.45 per share. All the markets have been assessing vehicle production risks; the outlook for BorgWarner and our business remain strong. BorgWarner’s performance is linked to the industry’s focus on fuel economy and improved emissions. There may be uncertainty about European vehicle production, but there is no doubt that fuel economy and improved emissions are a focal point for the industry now and for many years to come. Therefore, we remain bullish about BorgWarner’s near term and our long-term future. However, because there is uncertainty about Europe, I would like to address our BorgWarner will get through another downturn should the need arise. In the aftermath of the last downturn, BorgWarner emerged stronger than ever, and today we are a leader company and sales and earnings performance continues to set records. Also, we employ more temporary workers now than we did previously. And that means our total cost structure is easier to flux if necessary. We also have agreements, pre-range agreements with our various works counsels in Europe.
In our view, there are no clear signs of a downturn; however, we are prepared to execute cost control plans quickly if needed, and we feel very good about our ability to perform well under any market conditions.So now, let’s talk about our record third quarter. Sales were $1.8 billion, up 27% from the same period last year. Our operating margin and income margin was 11.1%, another record. U.S. GAAP earnings were $1.15 per share, and three key factors that drove our results were increased global demand for our products, higher volumes in base business, and well executed cost control. In the Engine Group, third quarter sales were above $1.3 billion, up 23% from a year ago. The Engine Group continues to perform very well, and we saw a growth in all of our engine products around the world. In the Drivetrain Group, sales were above $539 million, up 36% from the third quarter, 2010. Drivetrain results were driven by increased VCT module sales in Europe, increased four-wheel drive and traditional automated transmission component sales in Korea, and the Traction acquisition. Also the Drivetrain Group’s operating margins continue to improve just like we said earlier in the year. In the quarter, margins were 8.1%, up from last year and the previous quarter. The Drivetrain Group continues to show improvements in capacity and productivity issues throughout Europe. We also continue to invest for the long-term. Read the rest of this transcript for free on seekingalpha.com