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These risks include, among others, matters that we have described in our Form 8-K filed with the SEC this morning and other filings we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all.Presenting today for Oshkosh Corporation will be Charlie Szews, President and Chief Executive Officer and Dave Sagehorn, Executive Vice President and Chief Financial Officer. Let’s begin by turning to slide 3, I’ll now turn it over to you, Charlie. Charles Szews Well thank you Pat. Good morning, today we’re announcing results for second fiscal quarter that exceeded our expectation. Overall total company sales increased 18.9% at $2.08 billion for the second quarter of fiscal 2012 compared to the second quarter of fiscal 2011. Earnings per share of $0.41 in the quarter was lower than the second quarter of fiscal 2011 due primarily to an adverse sales mix in our defense segment partially offset by strong growth in our access equipment segment. Our outperformance in the quarter versus our expectation was driven by continued strong replacement driven demand for access equipment product which led to 61.4% year-over-year sales growth along with significantly higher operating income in this segment. We expect the access equipment segment along with our other non-defense businesses to lead us forward in the coming years. We previously described fiscal 2012 as it being a year of transition and investment in our MOVE initiative. As expected our defense segment continued to transition to second quarter towards the higher percentage of sales from our lower margin FMTV program. We’re pleased to report that profits on the FMTV program continue their upward trend in the quarter. Also in our second quarter, we made good progress on initiatives in each of our major MOVE categories which I’ll describe in a few minutes.
We added engineering, operations and business development talent and resources in the quarter to better position us to deliver on the high level MOVE target that we previously described to you, namely a 250 basis point improvement in margin through product, process and overhead cost optimization and an increase in international sales to 30% of consolidated sales.Let’s talk about our current market condition and please turn to slide four. Following a trend that has been ongoing for the past several quarters, the access equipment market continues to exhibit a strong recovery. I am looking at the makeup over 61% increase in sales in this segment during the second quarter. We experienced strong, double digit growth in all major regions of the globe but the performance is again driven largely by replacement aged equipment in North America. Business fundamental support, continued recovery in access equipment. In North America, higher equipment utilization, rental rates and used equipment values are making it more cost effective to replace older equipment. Average fleet is come off their peak but still remain significantly higher than historical levels at more than 50 month. Outside of North America, we see continued strength in South America and Australia driven by continued product adoption along with economic and infrastructure driven demand. And even the European access equipment was still cautious due to economic concerns show positive signs in the second quarter compared to what we saw in the fall and early winter. Wilson Jones and his team just returned from a successful Intermat show last week in Paris and even though the European market lag the recovery that we would experience in North America, we are generally encouraged by what we’ve heard and saw. The strong recovery in the market for access equipment products in North America is continuing to occur without a measurable recovery in construction activity. When construction activity does begin to recover meaningfully, and I believe it will, we expect this will help extend the positive trend in this market. Finally, we ended the quarter with a backlog of just over $941 million in the access equipment segment which positions us well for a strong finish to fiscal 2012. Read the rest of this transcript for free on seekingalpha.com