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 on our 10-K. Our actual results may differ significantly from the matters discussed here today.Now moving on to our results. Ken Manganello, Chairman and CEO, will comment on the first quarter and current industry trends; and then Ron Hundzinski, our CFO, will discuss the details of our operating results and also our outlook for the remainder of 2012. Also in the call, we have James Verrier, President and Chief Operating Officer; and Robin Adams, Vice Chairman and Chief Administrative Officer. With that, I'll turn it over to Tim. Timothy M. Manganello Thank you, Ken, and good day, everyone. Today, I am very pleased to review our strong first quarter results as well as our first quarter accomplishments. But before I begin, I would first like to congratulate members of my senior staff on their recent promotions. Robin Adams has been promoted to Vice Chairman of the Board and remains Chief Administrative Officer. Ron Hundzinski has been promoted to Chief Financial Officer and James Verrier has been promoted to President and Chief Operating Officer. Ron has been with BorgWarner for nearly 10 years. And during that time, he was Vice President on Finance at Turbo Systems, our largest business unit. His leadership was essential to its profitable growth. In his more recent role as Corporate Treasurer and Controller, he worked very closely with Robin. And I am confident that their relationship will ensure a seamless transition for the CFO position. James joined BorgWarner 22 years ago. He has delivered important operational improvements in every BorgWarner business he has led. At Morse TEC and earlier at Passenger Car, Turbo Systems, he successfully directed these businesses through rapid growth, geographic expansion, new technology launches in an economic downturn. I consider James a critical component of our senior management team and I look forward to working more closely with him in the future.
Now in his new role as Vice Chairman, Robin will continue to focus on financial matters. And of course, he will work closely with the Ron, our new CFO. He will also continue to provide input on strategy and growth for our company. And I would like to say that I am very appreciative and I want to thank Robin for his many years that we have worked together and his many years as our most successful and very successful CFO.Robin and I have the utmost confidence in Ron and James and we are excited to be working with them in their new positions. So now, let's go on to the first quarter results. Sales were $1.9 billion, up 11% from the same period last year. U.S. GAAP earnings were at $1.28 per share, up 28% from 2011. Our reported operating income margin was 11.8%, a great start toward the 11.5% or better that we expect for the full year. And 3 key factors drove our results: increased mobile demands for our products, higher volumes on our base business and well-executed operational efficiency. In the Engine Group, first quarter sales were about $1.3 billion, up 5% from a year ago. The Engine Group continues to perform well and results were led by accelerating turbocharger growth around the world, increased sales in engine timing systems, including variable cam timing, and greater sales of emissions products. In the Drivetrain Group, sales were about $600 million, up 26% from the first quarter last year. Drivetrain's results were driven by increased sales of DCT modules in Europe, expanded sales of traditional automatic transmission components in North America and Korea and higher sales of all-wheel-drive systems in North America and Europe. In addition, the Drivetrain Group continues to make progress with their margins. Read the rest of this transcript for free on seekingalpha.com