I would now like to turn the conference over to Mr. Michael Biehl, Chart Industries’ Executive Vice President, CFO, and Treasurer. You may begin your conference.Michael Biehl Thank you, Marine. Good morning, everyone. I would like to thank all of you for joining us today. I will begin by giving you a brief overview of our second quarter results then Sam Thomas, our Chairman, President, and CEO, provide highlights from the second quarter and comments on current market and order trends we see in each of our business segments. I will finish up then by commenting on our outlook for the remainder of 2012. Reported net income for the second quarter of 2012 of 17.9 million or $0.59 per diluted share, second quarter earnings would’ve been $0.57 per diluted share excluding $1.1 million favorable earn-out adjustments related to prior acquisitions, partially offset by a non-cash impairment charges and the write-off of deferred financing fees associated with the credit facility amendment. Due to higher forecasted costs and a delayed biomedical product launch of prior acquisition, earn-out liability was reversed, as it was determined that the reported gross profit targets would no longer be met. This provided a net $4.4 million benefit in the quarter, reflecting the net impact of our quarterly assessment of all of our prior acquisition announced. In addition, we also took in impairment charge for the elimination of in process research and development intangible assets, established at the opening balance sheet, related to this prior acquisition. As a result, an impairment charge of 3.1 million was taken out of these assets in the quarter. The current quarter’s performance compares to the second quarter of 2011 net income of $10.6 million or $0.35 per diluted share. Second quarter 2011 earnings would have been $0.41 per share excluding 2.8 million of restructuring costs associated with acquisitions.
I’d also like to point out that currency losses were 1.8 million during the quarter or $0.04 per diluted share excluding the currency impact adjusted earnings would’ve been $0.61 per diluted share in the quarter.The euro volatility particularly impacted our biomedical business which largely manufactured that U.S. itself approximately 45% of its product in Europe. Sales for the quarter were 240 million, which represents a new quarterly record and an increase of 20% compared to net sales of 201 million a year ago. Our gross profit for the quarter was 74.1 million and 30.9% of sales compared with 62.3 million or 31.1% of sales a year ago. We expect additional ramp-up costs as we continue to expand capacity globally to persist to the remainder of 2012 and into 2013. With respect to the energy and chemicals of our E&C business, sales increased 67% to 77.1 million in the second quarter as large baseload projects are progressing as expected. As a reminder, our E&C business recognized the majority of its revenues on a percentage of completion bases. Gross margins improved to 30.2% in the first quarter compared to 29% in the same quarter last year. The improvement is encouraging and reflects higher production throughput and improved pricing in the quarter. This completely offset higher training cost as the E&C continues to hire welders and engineers. In Distribution & Storage, or our D&S business, sales increased 12% year-over-year to 113.4 million in the second quarter, driven by notable demand for LNG equipment especially mobile equipment and bulk storage tanks. The acquisition of growth for which closed in the third quarter of 2011 accounted for approximately 4 million of the improvement. Gross margin for D&S declined to 27.2% compared with 28.2% a year ago. Product and geographic mix as well as higher production costs in China due to challenges and meeting of the rapid growth and demand, negatively impacted margins compared with last year. Read the rest of this transcript for free on seekingalpha.com