Good day ladies and gentlemen, and welcome to the second quarter 2009 stoneridge earnings conference call. My name is Jasmine and I’ll be your operator for today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of this conference. (Operator Instructions) I would now like to turn the presentation over to your host for today’s call, Mr. Ken Kure, Corporate Treasurer. Please proceed, sir.

Good morning, everyone, and thank you for joining us on today’s call. By now you should have received our second quarter earnings release. The release has been filed with the SEC and has been posted at our website at www.stoneridge.com. Joining me on today’s call are John Corey, our President and Chief Executive Officer, and George Strickler, our Chief Financial Officer. Before we begin, I need to inform you that certain statements today may be forward-looking statements. Forward-looking statements include statements that are not historical in nature and include information concerning our future results or plans. Although we believe that such statements are based upon reasonable assumptions, you should understand that these statements are subject to risks and uncertainties, and actual results may differ materially. Additional information about such factors and uncertainties that could cause actual results to differ maybe found in our 10-K filed with the Securities and Exchange Commission under the heading forward-looking statements. During today’s call, we will also be referring to certain non-GAAP financial measures. Please see the Investor Relations section of our website for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures. John will begin the call with an update on our results and his thoughts on the market conditions. George will discuss the financial details of the quarter and future outlook. After John and George have finished their formal remarks, we will then open up the call to questions. With that, I’d turn the call over to John.

Good morning. Thank you for joining us on today’s call. As you have seen, we have reported sales of $32.2 million in the second quarter, which is a decline of a $110 million or 52% from the prior year. This sales decline was the primary reason for the net loss of $19.8 million, which excludes any benefit for taxes due to the valuation allowance taken in the fourth quarter of last year and is compared to last year’s profit of $4.7 million. To give some perspective on our results, let me briefly review the market’s performance. In March of 2009, based on industry forecast, our expectations were for the North American automotive productions to be approximately 8.2 million units, North American commercial vehicle production to be around 293,000 units and European commercial production to be around 270,000 units. As the second quarter developed, it became apparent that volume declines accelerated over the first quarter. Several factors contributed to this, including continued weak demand based end customer uncertainties, continued credit financing availability issues and the bankruptcies of Chrysler and GM. In Europe our end customer responding to continued economic weaknesses conducted rolling shutdowns of operations and generally operated at 50% of the prior year volume or less throughout the quarter. The combination of these issues resulted in actual production rate for the second quarter, 15% below our North American light vehicle production estimate, 17% below our North American commercial vehicle production estimate and 11% below our European commercial vehicle production estimate. These production variances were compared to our estimates of March of 2009. Compared to 2008, North American automotive production in the second quarter of 2009 of 2.9 million units was a decline of 49.6%. In the North American commercial vehicle sector second quarter production was 55,000 units a drop of…

Thank you, John. We started the journey three years ago to improve the operating and financial performance of the company. We were on track for record performance through the first half of last year. At that time, we were exploring business opportunities to enhance our topline growth. However, in the second half of 2008, the market declines which began in the US markets during the third quarter quickly stole over the emerging markets and had a significant negative impact on the European market. As John explained, we were finalizing the major restructuring projects we had initiated in November 2007 when the significant downturn in the market occurred. We then quickly adjusted our strategic growth planning to a shorter-term focus to manage our cost structures, lower our breakeven level of managing liquidity. Last year, our sales were $752 million. During the first half of this year, sales were $223 million which is an annual run rate of approximately $440 million to $500 million. We have taken down our controllable costs for direct labor, fixed and variable manufacturing overhead, design and development expenses and SG&A expenses by $52 million in the first half of 2009, compared to the first half of 2008. We have completed the restructuring efforts to close your manufacturing facilities in Sarasota, Florida and Mitcheldean, UK. We consolidated the two plants in Canton, Massachusetts into one facility. We have completed Phase I of our restructuring our European operations. We have completed the program to consolidate one of our Mexican facilities under one management team. These actions have cost $19.2 million during 2008 and 2009 but the annual benefit should be approximately $26 million. From these programs, we have reduced our global workforce to fewer than 5000 employees, a reduction of over 21% compared to last year. We have announced…

(Operator Instructions) Your first question comes from Brian Sponheimer - Gabelli & Co. Brian Sponheimer - Gabelli & Co.: You talked about getting share from distressed suppliers. I was hoping maybe you could talk a little more about that and behind that, regarding your own [discussions] with the suppliers, has there been anything discussed with supplier cases in which you have had to ship vendors to ensure a steady supply?

Yes. I think that we can’t disclose who we are going to take business from, because I don’t think we have got verbal awards. They need to notify the other side, so that is all we can say right now. Regarding our supply base the team has done a very good job in managing it better. We have meetings that looking at our suppliers capabilities. They are not only looking through the financial capabilities but also seeing if we are having any problems with the product coming in the door because that is always an indication. In a few select instances we have had to move tooling to another supplier, and have a couple of programs that are actively underway now to resource business to suppliers that are more financially capable and operationally capable and on the supply side what we have really seen is the smaller suppliers that have had some problems with liquidity and availability. We have developed a list of those. We work with them and in three cases we have had to switch our tooling and capabilities so that we can respond to their financial difficulties. One other things we have done also is selectively where we felt were not sure of a supplier’s future, we have increased inventories from that supplier until we could get a better fix on it so we wouldn’t have a supplier disruption. Brian Sponheimer - Gabelli & Co.: Okay. Can you give me any idea of the timing that took place on these three instances where you had to move? Whether it was earlier in the quarter or later?

We actually have done all the moves we are working with one remaining one that we’ll have in place by September, so there will be no disruption in any of our production capabilities. Brian Sponheimer - Gabelli & Co.: Secondly, Banko Santander just announced that they are active on their Brazilian unit. So it appears that the Brazilian market is opening up somewhat. Can you give an update on the PST business and where that stands with regards to potentially setting that off?

We’ll do that if we had recourse to. Any spin-off or public offering of that business will have to be done in conjunction with our partners and done at the right evaluations. I think the market is probably a little bit early there. The market as we said earlier is starting to come back. We have got new program launches into that market. I would think that we will get down there in a couple of weeks and, we will look and talk with them about the conditions for perhaps potential IPOs sometime next year.

Most of the IPOs that have been going along in Brazil have really been with large cap. I think there is still a difficult market for medium and small cap kind of companies. So as John said it is going to probably be out there a little later than, lets call it sometime in 2010 late if the markets respond and then your first question the Brazil market certainly has started to rebound quicker than the North American, European market. We have seen it in the second quarter and I think what we are currently looking at in the third quarter is they are returning to levels before the stress period of fourth quarter last year.

(Operator instructions) Your next question comes from Brett Hoselton - KeyBanc.

I have got a couple of questions and then Matt has a couple of questions here. My question is with regards, first and foremost to your backlog. You have been talking about your three to four year backlog of around $250 million. Is there any reason to believe that that has materially increased or decreased over the past several months?

I wouldn’t say it is a material increase. I don’t think that we have lost any programs. What we are seeing is maybe some stretch-out of programs that we thought are being pushed out a little bit far. The customer is managing their investment also but I think the program awards are still good. Now depending on the volume, we quoted those numbers volume expectations are much higher. So from a volume related perspective that might be down but not from a program related perspective.

Brett in our August planning session we are going to come out and really try to quantify what the market projections look like versus to product launches and frame that in a way with current production schedules and estimates. The other thing is somewhat choppy in this is government orders. They don’t seem to be as easily predictable as our other lines of business and so that adds a little bit more uncertainty in terms of how that has been coming into the forecast and what we experience.

Then, as far as the potential take over business, I know that you can’t necessarily identify, well, anyway a number of different factors. I guess my question that would be, can you give us a sense as to the order of magnitude and potentially the timing? Is this potentially a $5 million worth of business? Is this $50 million worth of business? Is this something that could impact the back half of the year or is it something that is 2010 and beyond?

I think in most cases the award would total probably between $5 million to $15 million in total if we looked at it and some of the awards we were looking at. I think assuming that depends on the customer, but we would probably see most of the benefit of that happening next year, although we might launch programs, some of those programs this year.

The 5 to $15 million John is that kind of an all-in number given all the programs that you are looking at or is that a per program number?

No, that’s kind of right now, an all-in number as we look at it. We haven’t factored in some other awards that might be coming and there are still decisions out there to be made on.

I’ll turn it over to Matt here.

George, can you go over some of the nonrecurring items in the gross margin line and maybe in the SG&A line that won’t occur again in the third quarter?

Well, I think they were really wrapped around. You can imagine, as we have created a global manufacturing footprint across our organization and our supply lines, our strategic supply that sort of gets out of sync a little bit when you are looking at demands and as they come down, we have had pipelines of materials. So, we generally have a policy within our company, we look at what we call excess and obsolete inventories and we have had to make some adjustments through some of our reserves that we normally do in normal practice of our accounting and those were reflected in the second quarter, really wrapped around those situations with inventory. That represented $3.6 million in the second quarter. I only highlighted because it’s a nonrecurring kind of thing and it will not have an impact on operations as we move forward. I think we are finally starting to see the bottoming of the market. Our inventory positions are starting to stabilize, even though we can improve our position of inventory, but the pipelines are getting more consistent with what we see as production schedules as opposed to the violent drop that we experienced in the first and second quarter.

As far as the Ag segment goes, was that down 50%? Did I get that right?

I think it was down. I think we quoted a little over 40%. Originally, they were holding fairly firm, but on specific platforms it’s been down fairly dramatically in the second quarter.

Is that expected to continue? What percentage declines are you expecting in Ag and other for the third and fourth quarter?

We are looking at some current forecasts right now and we are starting to see some disparity between those forecasts. We never envisioned the Ag market would be down. I think we had some sort of unusual adjustments in the second quarter, so I don’t think Ag will continue to [run].

As far as some of your programs coming online from your backlog, can you give some of the timing of some of those launches? Was it just like a negligible in the second quarter and are you going to see a real uptick in the third and fourth?

No, the programs that we are launching now, most of them are into the last half of this year will be primarily programs that come on the fourth quarter, which will have a benefit in 2010 as we go forward. Some of our longer lead time programs, we have to invest in those this year in order to be ready to launch those programs next year. And instrumentation even goes out to 2011. So, we have to make the D&D investments continue into those things in order to support the launches, but the business is firm there. We are continuing to manage that appropriately to go after it, to look at that to stay in touch with our customers, to make sure that they are on still on schedule with their launches. So, we are not out of sync. So, what you’ll see is that most of what happens this year, we are spending the money and the benefit will come next year when the revenues really kick in.

So, it’s more of a 2010 story as far as some of the launches and some of the backlogs?

I think some of it as John said will start in the fourth quarter, but predominantly in 2010.

As far as some of the new restructuring charges and some of the new restructuring savings associated with moving control devices from two segments to one segment, could you just ballpark, maybe the charges and the savings you expect from that? I know you are working on that now, but are you looking at zero to $5 million in new restructuring charges or $5 million to $10 million or greater than 10? The savings coming off that as well, if you could just ballpark it in a range?

We haven’t disclosed that publicly, but I think from our experience, it will look very similar to what Sarasota was. They are the same kind of operations, so we have got a long way to do in our plan yet, but I think it’s going to be somewhat in that range. As we mentioned, we’ll disclose that in the third quarter as we firm up the plans.

Sarasota, have you been able to sell that facility yet?

No, the commercial real estate market has been pretty tough. We are not a distressed seller and we’ll sell it for the right economic value, but we are working on it very actively.

There are no further questions at this time. I would like to turn the call back to Mr. John Corey for closing remarks. Please proceed.

Again, thank you. I just have these closing comments. It is a very difficult market environment. There still continues to be some uncertainty out there and I reemphasize, I think what we are seeing now is that we have reached the bottom. We will start to see a gradual upturn from this and we are structuring our business appropriately. One of the things that we have always tried to do in this business was to try to anticipate the forward momentum of the markets and how we need to position ourselves for those things. To that extent, the next big challenge for us is now that we have taken this cost out, George and I and the management team will be now assessing what’s permanent, what comes back as volume grows with the intention of making sure that we leverage the savings and just don’t start plowing back costs into the business. So, that’s going to be the next level of this. As we looked forward though, the company still remains well positioned. As we have said all along we are following our plan. There is no need for us to deviate from that plan although we have as we said adjusted for some of the realities that we see in the market. Those are primarily of how we are adjusting our business from a cost structure to adapt to those things. But we are still going to be aggressive in trying to win new business and go after new business and I think that as the market returns, we will see the benefits of all these actions. With that, I would like to thank you for joining us today.

Thank you for attending today’s conference. This concludes the presentation. You may now disconnect. Have a great day.