Ladies and gentlemen, good morning, and thanks for joining the Third Quarter 2014 Commercial Vehicle Group Earnings Call. My name is Ryan. I'll be the operator on the event. And at this time, all participants are in listen-only mode. Later, however, we'll be opening our lines to facilitate questions and answers. (Operator Instructions) As a reminder, we're recording for replay. Now, I'll turn the call over to Mr. Terry Hammett, VP Investor Relations.

Thank you, Ryan. Thank you, and welcome everyone to our conference call. Rich Lavin, our CEO will give a brief company update; and Pat Miller, President of Global Truck and Bus will provide a line of business overview. Tim Trenary, our CFO will provide commentary regarding our third quarter 2014 results, who will also provide commentary on our long-term strategy, CVG 2020 and answer questions. I'd like to remind you that this conference call is being webcast. It may contain forward-looking statements including, but not limited to expectations for future periods regarding market trends, cost saving initiatives and new product initiatives among others. Actual results may differ from anticipated results because of certain risks and uncertainties. These risks and uncertainties may include, but are not limited to the economic conditions in the markets in which CVG operates, fluctuations in the production volumes of vehicles for which CVG is a supplier, financial covenant compliance and liquidity, and risks associated with concluding business in foreign countries and currencies, and other risks detailed in our SEC filings. I'd now like to turn the call over to Rich.

Thank you, Terry. Good morning, and welcome to our call. We're pleased to report that our revenues improved by $25.9 million or by 13.8% over the prior year period, and that gross profit and operating income improved by $10.3 million and $13.1 million respectively. Before giving effect in the prior year period to the costs associated with employee separations, asset impairments and third-party consulting services, pull-through was well within the range we expect period-over-period. Demand for medium and heavy-duty truck products in North America benefited from comparatively strong build rates during the third quarter of this year. Class 8 heavy-duty truck orders remain strong in the third quarter of 2014, and were approximately 43% higher than the prior year period. Pat Miller will expand on this in his update on our global truck and bus division in a few minutes. Our global construction and agriculture end markets also performed well in the third quarter of 2014, delivering better than 10% more sales than in the prior year period. We continue to focus on the agricultural equipment market, especially in North America. Agriculture is a market we believe offer significant growth potential for us. It is probably the single biggest area of potential growth for CVG globally, and we're addressing the opportunity to both enhancing our product offerings and expanding our sales and marketing efforts. We're committed to allocating the resources needed to increase the sale of our products in this critical market. And of course, construction is a key industry for us, and an important area of growth going forward. The company is currently in the process of [grooming] (ph) its financial plan for 2015. As we build our plan and our product line managers identify growth opportunities, we're encouraged by the 2015 forecast for continued growth in the regions…

Thank you, Rich. As Terry mentioned, I am Pat Miller, the President of CVG's Global Truck and Bus division. First, I'd like to comment on the North American truck build rates. Build rates have remained strong. They've been on an upward swing all year, supported by strong freight market and positive economic indicators. We're continuing to successfully adapt to the ramp up of daily build increases from the OEMs. The volume increases have been managed in our usual fashion of flexing up our capacity through increased hiring and adding shifts and overtime. We've had some minor supplier constraints, but we've been able to mitigate these and avoid any impacts to our major customers. We're taking full advantage of the increased build rate in North American heavy-duty truck industry, and we're meeting or exceeding expected profit pull-through target on these increased sales. From an OEM perspective, we're seeing our customers add additional build time to offset any issues they maybe experiencing, and for the most part, they seem to be managing the higher demand. There is a strong order backlog in most of our customers, FTR, a forecasting service we use in addition to ACT recently published, their projection was some of the bills were being pushed into 2015, and it would help bolster a strong first half 2015 from a build perspective. We've been talking in previous sessions about a 280,000 to 300,000 truck build for 2014. We're more confident the build rate will be more in the 290,000 to 300,000 range, subject to any unforeseen constraints in Q4, 2014, at the OEMs. We believe that the North American heavy-duty trucks build in the first quarter 2015 will continue to be robust, based on the build trends we've seen through the third quarter. We're focused on a great deal of activity currently in quoting and staffing to support several next generation development efforts, for many of the large North American platforms which are targeted for start the production in 2016 and 2017. For the rest of the world, as we discussed during our Investor Conference, we're developing and launching region-specific seating products in multiple Asian countries, targeted at driver seat applications for truck and bus OEMs. Designing products that address the price and performance expectations of different customers in Asia Pacific is an essential element of our organic growth strategy in that part of the world. We're developing inroads with the domestic OEMs, which is giving us better insight to the dynamics and market requirements for those areas. Additionally, we've recently launched common platforms with a large multinational, in China, India, and Thailand. We're seeing our current large truck customers working very diligently to increase their share on these markets, and this has convinced us to expand our infrastructure and region as we go forward. With that, I'll turn the call over to Tim for comment on our financial performance.

Thank you, Pat. As Rich mentioned, and as compared to the third quarter of 2013, our financial results continue to benefit from increased build rates by North American heavy-duty truck OEMs and to also extent our global construction and agriculture end markets. Third quarter 2014 revenues were 213.8 million, an increase of 25.9 million or 13.8% compared to the third quarter of 2013. Operating income in the third quarter at 9.7 million compares favorably to an operating loss of 3.4 million in the third quarter of 2013. You may recall that our third quarter 2013 results were impacted by a number of special items, more specifically in the third quarter of 2013, the company incurred 1.8 million in cost associated with employee separation, 2.7 million Of asset impairments, and 2.8 million of cost for third-party consulting services. When adjusted for these special items, a total of 7.3 million, our third quarter 2014 performance represents a 5.8 million improvement in operating income from the prior year period, and pull-through or conversion of sales into operating income in the quarter consistent with our historical experience. Our gross profit and operating income margins before giving effect to the special items previously noted benefited in third quarter of 2014 compared to the prior year period, from cost structure discipline in a rising market and therefore operating leverage on increased sales. With regard to the SG&A spending of 18.3 million in the third quarter of 2014, it compares favorably to the prior year period by 2.8 million. As more fully described in our earnings release, SG&A spending in the third quarter of 2013 included 4.4 million of the afore mentioned 7.3 million in special charges. Our SG&A spending in the third quarter of 2014 reflects spending consistent with the first two quarters of this year.…

(Operator Instructions) Our first question here comes to from Robert Kosowsky with Sidoti.

Good morning, guys. How are you doing?

Hi, Rob. How are you?

Doing great. I remember in the second quarter there were a little bit of inefficiencies associated with the North America truck ramp and that seems like they've all been pretty much hashed out, is that pretty fair to say they've all been hashed out and are you executing to where you think you would be given the current production environment?

Yes. We are. We had some -- when we were ramping up, we had also new business launches going on simultaneously. And so, there were some things we did in the first half of the year that we've cleaned up in the second half of the year.

Okay, it sounds good. And then, otherwise any more kind of granularity as to how the construction market should be unfolding fourth quarter and then into next year either by region or -- I guess, by region specifically.

. : Europe is going to flattish year-over-year, and so, we're planning on some improved sales associated with deeper customer penetration. But it's a flat outlook generally in construction for Europe, consistent with the GDP outlook.

Okay, that's helpful. And then finally, Tim, I don't know if you haven't give any more thoughts to, I guess, potentially restructuring some of the debt you have or refinancing the debt you have into next years -- just any update or thoughts on that.

Yes. Rob. We are in fact continuing to evaluate our capital structure, especially in the context of CVG 2020. That work is underway and ongoing. And at this point, I don't really have anything material to report; some more to come on that, just know that we're doing as you enquired.

Okay. Thank you, very much and good luck, guys.

Thanks, Rob.

Our next question here comes to you from David Leiker with Baird.

Hi, good morning. This is Joe Vruwink on the line for David.

Hi, Joe.

I just wanted to follow up on the last comments regarding your construction and Ag business, when I think of your customers; most have lowered their forecast for construction in Asia this year, and there has been a lot of suppliers noting weakness and combine activity here in North America. So just with that context, you sound a lot more upbeat. And I'm wondering if you can attribute that to new business at CVG, which is enabling you guys to have a better outlook for your business relative to the markets.

Yes, Joe. I'd say that our outlook for construction and Ag is really tied to our plans to more deeply penetrate existing customers and existing opportunity levels. I mean, our improvement is not only going to be dependent upon the industry growth year-on-year, it's going to be better upon our ability to more effectively and more deeply penetrate the existing opportunity.

Okay. So the types of numbers that have been thrown out recently, minus 30% declines in China Construction and down 10% to 15% here in Ag in North America, those numbers don't concern you just given you see your book of business and you're well positioned there?

Yes. I'd say in construction with our book of business, we're pretty well positioned, and we're making efforts as I mentioned to more deeply penetrate the Ag opportunity North America and globally, but principally North America.

Okay, great. And then on switching gears a bit, when you step back and look at how your business performed during Q3 and what were pretty good levels of industry demand. What are some of the puts and takes into 2015 for driving profitability, higher growth of -- to the levels you seem to be exiting, I'd call it a plus or minus 5% EBIT margin level, you'll be exiting this year out?

Yes, Joe, first of all on truck, I'd say that Pat and his team have really addressed that opportunity quite effectively this year. We've gotten the pull-through that we'd expect given the level of the industry improvement in North America, and we see that carrying over into 2015 as the level of the build is sustained in the first quarter of 2015. As far as improvements otherwise are concerned, I'd say that those are really going to come from areas that we're focused on that we're going to be investing as a part or CVG 2020. As a part of our CVG 2020 rollout, we indicated that we continue to look at our manufacturing footprint and look for opportunities to rationalize and improve our overall footprint. At the same time, we brought in Ulf Lindqwister to manage several key areas of cost input, including materials, logistics, manufacturing and operational excellence as we pull together our 2015 plan, our expectations for contributions in those areas have really improved as a result of his and his team's engagements. So I'd say those are probably the areas where we expect to see the most significant contribution and year-over-year profit improvement.

And when you look at those things, does that allow you to generate EBIT contribution above the normal 20% to 25% range you target, or are those actions still getting you within that range?

We'll ensure they were within that range, but we're also targeting the EBITDA growth range in the first year of CVG 2020 that Tim mentioned in his remarks.

Okay, great. I'll leave it there. Thanks, guys.

And we have no other questions in queue. (Operator instructions) All right, it looks like we have no other questions coming through.