Before we begin this morning, please be advised that this call may involve forward-looking statements regarding the company and its businesses. The company's actual results could differ materially from any forward-looking statements due to several important factors described in the company's latest SEC filings. The company assumes no obligation to update any forward-looking statements made during this call.We will begin this morning with comments from Tom Gallagher, our Chairman and CEO. Tom? Thomas C. Gallagher Thank you, Carol, and I would like to add my welcome to each of you on the call today and to say that we appreciate you taking the time to be with us this morning. Jerry Nix, our Vice Chairman and Chief Financial Officer, Paul Donahue, our President, and I will each handle a portion of today's call. And once we have concluded our remarks, we will look forward to addressing any specific questions that you may have. Earlier this morning, we released our second quarter 2012 results, and hopefully you've had an opportunity to review them. But for those who may not have seen the numbers as yet, a quick recap shows that sales for the quarter were $3,338,000,000, which was up 5%. Net income was $168.6 million, which was up 11%. And earnings per share were $1.08 this year compared to $0.96 last year, and the EPS increase was 12.5%. So although we did see some moderation in the rate of revenue growth from the first to second quarters, which we will discuss more in a few minutes, we think that our team did a good job on the operating side of the business in leveraging the 5% sales increase to an 11% increase in net income, and we're pleased to report another solid quarter. A review of the results by business segment shows that our strongest sales results continue to come from our Industrial and Electrical/Electronic segments. Motion Industries is our industrial distribution company, and they were up 8% in the quarter. This follows a 12% increase in Q1, so we did see some deceleration in the growth rate. But as a point of information, the 8% increase this quarter is on top of a 19% increase in the second quarter of last year, making for a challenging comparison. But in our opinion, they handled it well, and they came to the quarter in good shape.
A review of the Industrial results in a bit more detail shows that the top 12 product categories were up 11% in the quarter and then the top 10 industry segments were up 8%, and the top 20 customers had a combined 15% increase. So from a product category, industry segment and customer perspective, the results continue to show good balance in the quarter with solid contributions from each of these 3 areas.Through the first 6 months of the year, our Industrial sales are running 10% ahead, and we feel good about their prospects for the second half. While we did see some moderation in the May industrial production and capacity utilization indices, the June figures released earlier this week showed some improvement and the individual indices remain at historically healthy levels. This, combined with some strong internal growth initiatives, caused us to remain optimistic about our Industrial business for the remainder of the year. Moving on to the Electrical/Electronic segment, EIS was up 9% in the quarter. This follows a 5% increase in the first quarter, so we did see some nice sequentially improvement in this business, which is encouraging. Our wire and cable segment is enjoying the strongest growth, while the Electrical and Electronics segments are more challenged. Our biggest revenue issues in the Electrical and Electronic businesses are with sales into the solar and electronic contract manufacturing customer segments. Both of these industries have experienced significant slowdowns over the past several quarters. But even with that said, our top 25 electrical and electronic customers were up 9% in the quarter. This would indicate healthy conditions in other customer segments, which was a big help to our overall results. Through midyear, our Electrical/Electronic business is running 7% ahead, and we feel good about the progress they are making. With that said, however, the June Institute for Supply Management Purchasing Managers' Index fell below 50 for the first time in 3 years, signaling a slowdown in the overall activity in the industry, and we will be watching this closely in the coming months while at the same time working hard toward gaining additional market share going into the second half the year. Read the rest of this transcript for free on seekingalpha.com