If you would please go to slide 2. Statements made in today’s call that are not historical facts are considered forward-looking statements and are made pursuant to the Safe Harbor provisions of Securities Laws. Please see our SEC filings for a description of some factors that may cause actual results to vary from anticipated. This release also includes non-GAAP measures, which are explained in the financial tables attached to our news release.Now, I’d like to introduce the participants on this morning’s call. We have Mike Lamach, Chairman, President and CEO; Steve Shawley, Senior Vice President and CFO; and Joe Fimbianti, Director of Investor Relations. With that, please go to slide 3, and I’ll turn it over to Mike. Michael W. Lamach Thanks, Janet. Good morning and thank you for joining us on today’s call. Earnings per share from continuing operations for the first quarter were $0.31, $0.08 above the midpoint of our guidance range of $0.20 to $0.26. As this is usually the case, there were some puts and takes in the quarter. The tax rate and other income expense went favorable by about a $0.01 each. We had a favorable stock-based compensation adjustment of $0.03 that was not in the forecast. Restructuring spend was about in line with our estimate, higher than expected inflation was offset by favorable overhead spending, the margin associated with the higher revenues was essentially the difference between the midpoint of our guidance and the $0.31 we reported. Although, it was somewhat better than our expectations, markets were generally in line with our outlook with slow growth environment. In the first quarter, we saw revenue growth of 3%, excluding the Hussmann refrigeration business from the 2011 comparison. We experienced moderate growth in revenues in Industrial and low growth in Climate and Security. Residential revenues were down year-over-year as residential HVAC revenues declined high single-digits, but residential security revenues were up high teens. As a reminder last year’s first quarter HVAC revenues were strong up 12% from channel restocking.
Excluding Hussmann, the orders were up 6% and 7% excluding currency. Operating margin for the quarter was 6.7%, down 30 basis points versus prior year. If we exclude Hussmann from last year, margins in Q1 were down 90 basis points from the first quarter of 2011.Although, margins improved from pricing and productivity, they were depressed by higher planned restructuring and investment spending year-over-year as we discussed in the February earnings call. All of our businesses continue to realize positive pricing and in the first quarter, our pricing outpaced direct material inflation for the fourth consecutive quarter. Please go to slide 4. Those of you that attended our recent Investor Day are aware of our ongoing focus in investment and innovation to accelerate our revenue growth. We steadily improved the flow of new products and services to the market over the last several years. Our goal for 2012 is 25% of revenue to come from new products and services introduced in the last three years, which we equal approximately $3.6 billion in revenue. We are on track to reach this goal and we expect to introduce new products in all of our businesses during the year. The health and vitality of the portfolio is in excellent shape and we’ll continue to build our organizational capability and increase our investments to faster innovation over the next few years. We also continue to make progress in our operational excellence initiative, which is our long-term approach to a lean transformation of the company. This is the multi-faceted effort that will reduce working capital, expand margins, and ultimately increase market share across our businesses. We have expanded all 19 value streams to include the entire value cycle from [clot] to cash and we will add five more value streams during 2012. As we indicated in February, we have won several restructuring programs and therefore restructuring expenses are frontloaded in the first half of the year in order to accelerate the benefits during 2012. And now Steve will take you through the quarterly results in more detail. Steven R. Shawley Read the rest of this transcript for free on seekingalpha.com