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Gail PeckThank you, Victor. Good morning, everyone. Welcome to Trinity Industries Second Quarter 2012 Results Conference Call. I’m Gail Peck, Vice President and Treasurer of Trinity. Thank you for joining us today. Following the introduction, you will hear from Tim Wallace, our Chairman, Chief Executive Officer and President. After Tim, our business group leaders will provide overviews of the businesses within their respective groups. Our speakers are, Bill McWhirter, Senior Vice President and Group President of the Construction Products, Energy Equipment and Inland Barge Groups; and Steve Menzies, Senior Vice President and Group President of the Rail and Railcar Leasing Groups. Following their comments, James Perry, our Senior Vice President and Chief Financial Officer will provide the financial summary and guidance. We will then move to the Q&A session. Mary Henderson, our Vice President and Chief Accounting Officer, is also in the room with us today. I will now turn the call over to Tim Wallace for his comments. Tim Wallace Thank you, Gail, and good morning, everyone. Our business has performed well during the second quarter. We continue to see a strong demand for products to transport and store crude and other liquids critical to the energy industry. Our railcar and barge manufacturing businesses are aggressively pursuing demand for products that serve these industries. The backlog for these businesses totaled approximately $3.7 billion at the end of the quarter. The size of our rail and barge backlogs provides our business leaders production visibility deep into 2013. Our business leaders have been highly effective at working together to reposition a portion of our production capacity to pursue robust market opportunities. During the next three months we will shift more production capacity to serve the oil, gas and chemicals industries. As a result, the number of our businesses within our portfolio will benefit from this transition.
As we began 2013, we expect our rail group to be in the early stages of a long production run of consistent product that serve these markets. We expect the similar situation of long production runs to continue in the area of our barge business to serve this markets.A number of our other businesses which provide internal support and manufacture products for these industries should also obtain long production runs and generate operating leverage. Trinity’s Railcar Leasing and Management Services group performed well during the second quarter obtaining higher lease rates and securing longer lease terms. The size and product mix of our lease fleet provides the opportunity to pursue secondary market sales when certain industry characteristics are favorable. This group will continue to pursue opportunities to capitalize on strong demand for certain types of secondary market sales of leased railcars. I’m pleased that our Energy Equipment group reported a profit during the second quarter. I’m confident that our team is moving in the right direction. We will adjust our production capacity for wind towers with industry demand and shift access capacity whenever possible to other industry products. The federal highway funding legislation that was recently implemented extends the current levels of highway funding for two more years. This should be a catalyst for our construction products businesses which serve this industry. Our balance sheet is in great shape and our overall financial position is strong. The business environment appears to be shaping up nicely into 2013 for our businesses that serve the oil, gas and chemicals industries. We are well-positioned to capitalize on additional opportunities for growth in a variety of industries. We’ve been very delivered during the past decade to position Trinity in a way that allows us to pursue a variety of opportunities in various industries. Our business is a very experienced and shifting resources as demand changes, aggressively pursuing orders to establish production runs and generating operating leverage, which leads to margin improvement during periods of consistent production levels. Our manufacturing flexibility is one of Trinity’s core competencies and we plan to utilize it as we see opportunity surface within the industries we serve. Overall, our second quarter performance reflects the strength of our multi-industry platform, the benefits provided by our market leadership positions, our commitment to operational excellence and the talents and hard work of our people. Read the rest of this transcript for free on seekingalpha.com