Welcome to the Fourth Quarter 2014 Commercial Vehicle Group Incorporated Earnings Conference Call. My name is Katina and I will be your coordinator for today. [Operator Instructions]. I would now like to turn the presentation over to your host for today's call Mr. Terry Hammett, Head of Investor Relations. Please proceed.

Thank you and welcome, everyone, to our conference call. Rich Lavin, CEO, will provide a brief company update and Tim Trenary, our CFO, will provide commentary regarding our fourth quarter and full year 2014 results. We will also provide commentary as regards to our long term strategy, CVG 2020. Pat Miller, President, Global Truck and Bus, is with us as well. Rich, Tim and Pat will take questions at the end of today's comments. I would like to remind you that this conference call is being webcast and may also contain forward-looking statements including but not limited to expectations for future periods regarding market trends, cost savings 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 production volumes of vehicles for which CVG is a supplier, financial, covenant compliance and liquidity, risks associated with conducting business in foreign countries and currencies and other risks detailed in our SEC filings. I would now like to turn the call over to Rich.

Thanks, Terry. Good morning, everyone and welcome to our call. We're pleased to report that our full year 2014 revenues improved by $92 million or by 12.3% over the prior year and operating income improved $27.3 million. We delivered operating income pull through within the range we expect period over period. Our earnings per share this year were $0.26 as compared to a loss of $0.44 in 2013. North American medium and heavy-duty truck build rates finished strong in 2014. 297,000 Class 8 trucks were built were approximately 21% higher year-over-year. As expected, demand for medium and heavy-duty truck products in North America benefited from comparatively strong build rates during the fourth quarter and full fiscal year. Leading into 2015, marketing indicators, including fleet age, fuel prices, improved fuel economy and GDP growth in the United States, suggests that the Class 8 truck build could be up as much as 10% compared to 2014. The market for our products in Asia-Pacific remains relatively flat in the short-term with the exception of India. Heavy-duty truck production in China was flat from 2013 to 2014 and we believe that production will be down approximately 5% in 2015. In India, medium and heavy-duty truck production was up over 10% in 2014, while bus production was slightly down year-over-year. Looking forward we believe that the truck build and bus build in India will increase moderately in 2015 tied to higher expectations for economic growth generally. In Europe, we believe that 2015 heavy-duty truck production will increase moderately year-over-year. Instability in Eastern Europe continues to drive uncertainty there, but we continue to be optimistic with current indications showing that the 2015 European heavy-duty truck production will be up moderately year-over-year. We continue to monitor these medium and heavy-duty truck markets and are encouraged by events…

Thank you, Rich. As Rich mentioned and as compared to the fourth quarter of 2013, our financial results continue to benefit from increased build rates by North American medium and heavy-duty truck OEMs and to a lesser extent penetration of our Global Construction and Agriculture end markets. Consolidated fourth quarter 2014 revenues were $211.9 million compared to $183 million in the prior-year period, an increase of almost 16%, primarily resulting from the increased truck production in North America and increased sales into the North American construction and agriculture markets we serve. Operating income in the fourth quarter was $9.5 million compared to operating income of $8 million the prior-year period. This increase in operating income reflects the increased sales and an improvement in our gross profit margin from 11.3% to 12.6%, offset by an increase in selling, general and administrative expenses from the prior-year period. SG&A for the fourth quarter was $16.9 million compared to $12.3 million in the prior-year period. You may recall that SG&A in the prior-year period benefited from temporary cost savings from a reduction in force and other cost reductions. We've since backfilled that spend with more value accretive activities. Net income was $4.2 million in the fourth quarter or $0.15 per diluted share compared to net income of $1.1 million or $0.04 per diluted share in the prior-year period. Net income in the fourth quarter reflects an income tax benefit of $0.1 million compared to an income tax provision of $1.6 million in the prior-year period. The income tax benefit in the fourth quarter resulted primarily from the reduction in tax valuation allowances in certain foreign subsidiaries. Shifting now to full year 2014 financial results. Revenues for fiscal-year 2014 were $839.7 million compared to $747.7 million for the prior-year. This was an increase of $92…

[Operator Instructions] Your first question comes from the line of Mike Shlisky presenting Global Hunter. Please proceed.

This is actually Leigh Pressman on the line for Mike Shlisky. So I just have a couple of questions. I just want to start out with the Class 8 truck outlook. What are the chances that the industry could exceed the higher end of your range given that so many build classes have already been filled for the next few quarters? You've been seeing some good strength in the industry.

Pat Miller, the President of Global Truck and Bus, has joined us for the call, so I'll turn that question over to Pat.

So today, I think we're on record at 290,000 to 310,000. That is what we've got out there. Some of the public forecasting services are higher than that. One is at 340,000 and one is at 325,000. What we see is there's a strong backlog today. There's a desire to build at higher rates from the OEMs and we're probably a little bit conservative where we're at. But we're also concerned with whether -- but whether the rest of the supply base can support the OEM's desire to build at higher rates. So that's part of the reason we've left our build projections where they are. I think we're waiting to see how things go as the OEMs continue to try to ramp up their build rates and whether they are able to accomplish that. If they are able to accomplish that, then we can support those higher build rates at CVG.

And then my next question is, with respect to the new segments, can you give us a little color about any seasonality you expect with respect to revenue and margins for the coming year?

Let me first of all, address the truck and bus. You know, there is generally some seasonality a little bit around the summer time and then around the holidays at the end of the year as things wind down a little bit. But there isn't a tremendous amount of cyclicality other than that. So maybe just a little bit of a softening in the summer, just a little tiny bit and then trailing off a little bit later in the year and picking back up very quickly at the beginning of the year. With respect to our construction and agriculture segment, really the only meaningful amount of cyclicality here is in the wire harness business. There is a little bit of a ramping up in the spring season around that time. But other than that, there is not a whole lot of cyclicality that we see in that market.

[Operator Instructions]. With no further questions at this time, I would now like to turn the call back to Mr. Richard Lavin for any closing remarks.

Yes, thank you. In closing, I would just say we're looking forward to sharing information about our quarterly results going forward and also the results that we're seeing from CVG 2020, our long term strategy. Thanks to everybody for joining the call this morning.

Thank you. Ladies and gentlemen, thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.