Good morning. My name is Tracy and I will be your operator for today’s call. At this time, I would like to welcome everyone to the Rexnord First Quarter Fiscal Year 2014 Earnings Results Conference Call, with Todd Adams, President and Chief Executive Officer, and Mark Peterson, Senior Vice President and Chief Financial Officer of Rexnord. This call is being recorded and will be available on replay for a period of two weeks. The phone numbers for the replay can be found in the earnings release, in the company filed on an 8-K with the SEC today, July 31, and they are also posted on the company’s website at www.rexnord.com. At this time, for opening remarks and introduction, I’ll turn the call over to Mark Peterson, Senior Vice President and Chief Financial Officer of Rexnord.

Good morning. Before we get started, just a brief reminder that this call contains certain forward-looking statements that are subject to the Safe Harbor language contained in the press release we issued today as well as in our filings with the SEC. In addition, some comparisons refer to non-GAAP measures. Our earnings release and SEC filings contain additional information about these non-GAAP measures and why we use them. Today’s call will provide an update on our overall performance for the first quarter of our fiscal 2014 including details on our two platforms, followed by an overview of our financial statements and liquidity highlights. Afterwards, we’ll open the call up for your questions. With that, I’ll turn the call over to Todd Adams, President and Chief Executive Officer of Rexnord.

Thanks, Mark, and good morning, everyone, and thank you for joining us today for an overview of our fiscal 2014 first quarter results. Starting on page four, our first quarter sales, profits and cash flow all slightly better than what we had anticipated heading into the quarter. With a 3% overall core growth in the quarter and a 7% increase in adjusted net income resulting in an adjusted EPS of $0.24. When you compare our adjusted EPS to the high end of the range we provided for the first quarter of $0.19, $0.02 of the earnings beat came from better core growth and operating performance and $0.03 of the additional upside was due to a lower discrete tax rate in the quarter, a topic Mark will touch on later in the call. Turning to the highlights for the quarter within the platforms. The momentum in water management continues to build as core sales grew 8% after having grown 11% last quarter, really all in advance of what we see is a market recovery that we should benefit from beginning in calendar year ‘14. To add a little further color on the end markets in the group performance within the platform, the growth in operating platform in Zurn continues to accelerate again delivering mid-single-digit core growth in the quarter clearly outpacing the overall market growth while cleanly navigating through all the low led conversion issues required in the marketplace. As far as the outlook for the non-residential construction market, we continue to see construction backlogs build in the U.S. and Canada and positive signals from the momentum related indices. This trend coupled with all the progress we have made over the past few years on innovation, specification and operational execution gives us confidence that we will disproportionately benefit from an expected…

Thanks Todd. Consistent with prior quarters we will speak primarily to adjusted operating profit and EBITDA, adjusted net income and adjusted earnings per share as we feel these non-gap metrics provide a better scenario of our operating results. Slide fie of the presentation takes report of results and reconcile the adjusted results. Turning to page 6, I will discuss our operating performance highlights for the first quarter. First quarter sales increased 2% from the prior year period to $509 million driven by our core sales growth of 3%. Adjusted operating income was $55 million in the first quarter or 12.8% of sales and our adjusted EBITDA was $92 million or 18.2% of sales in the first quarter. First quarter adjusted net income increased 7% year-over-year to $24 million resulting in adjusted earnings per share of $0.24. This compares to adjusted earnings per share of $0.23 in the prior year. Free cash flow was a use of $35 million in the quarter and improved $17 million or 33% over the prior year quarter. Next I’ll take some time on slide 7 to walk through the operating performance in our Process and Motion Control platform. Sales in the first quarter was $315 million, core sales growth improved sequentially from down 4% in our 2013 fourth quarter to flat year-over-year and our first quarter has growth and sales to our food and beverage and non-U.S. mining end markets offset by slower global industrial demand in the majority of a remaining end market. Turning to profitability in PMC, adjusted EBITDA was $71 million in the quarter or 22.5% of sales and in line with our expectations. Our first quarter margin reflects certain investments we have made it successfully drive our share gain strategy in certain key geographies. Looking forward, we anticipate the PMC margin…

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from Mig Dobre from Robert Baird. Please go ahead. Mig Dobre – Robert Baird: Good morning, gentlemen. Thank you for taking my question. First question from me would be on core growth little bit better than what I originally anticipated here. I’m wondering can you give us an update is to how you’re thinking about core growth segment level both PMC and Water and what’s baked into a current outlook for the remainder of…

Sure. Maybe when we walked into the year we felt pretty optimistic that’s the water business was going to continue to accelerate and that is clearly playing out. So, when you look at the full year I would say that the guidance would have sort of mid to low high single digit core growth embedded in there and when you look at process in most control with still be in that very low single digit number 1% to 2% sort of that range. Mig Dobre – Robert Baird: Even though arguably speaking you have done quite a bit better than originally anticipated in the first quarter?

Well, it didn’t – at some point we probably revisited but I think given we get nine months left of our fiscal year there is still fair amount of uncertainty. I think we’re going to view that the end markets and industrial side taken as a whole our still mixed I think we’re doing really good job of taking share where we can at in the end. I think it’s couldn’t at this point keep that level of guidance and obviously run through a higher level internally. Mig Dobre – Robert Baird: Sure. And I guess my follow up would be really on the margin side and obviously you have spoken of incremental EBITDA margins in the 30s previously and performance in a current quarter it’s been a little bit difference from that. I’m also getting the sense that looking at your PMC incremental margin guidance for the year. You’re looking something lower than you having past. Can you give us sense for how you’re thinking going forward and what are some other puts and takes here?

Sure. I’ll start by saying if you look at our guidance we clearly had anticipated the margins to be whether where in the quarter. It was embedded in the guidance we provide I think the strategy that we deployed it’s really to grow the install base. Because if you look at the model and process in motion control we go in and we solve complex problems in market systems where the cost of down time and its very high. And everything we make generally where is out so by growing install base you in essence set up the back so we are aggressively growing sort of end users and OEMs maybe there was a little bit of timing in terms of projects to OEMs and end users that sort of fell into the first quarter versus the second may have impacted to the way of the margin. By taking as a whole I don’t think for walking away from the 30% incremental but I do think at this quarter was consistent what we thought. So, I don’t think there is any change and where we thinking about it. In fact I think overtime we’re going continue to accelerate the investments are ongoing install base because in the business model in the backend is so robust. And I think this is testament to the effectiveness of the strategy of investing to grow the core in the install base knowing that down the road its sets up larger annuity for us as a company. Same thing on water side effectively what we’re doing there is you’ve see a market turning and we’re investing in alternative channels, we’re investing in additional products to put into our basket to cell to customer globally as well as setting up capabilities in countries and geographies we don’t have that today. So, I think it’s entirely consistent with driving growth recognizing the fact we know that the margins we’re going be there as we execute. Mig Dobre – Robert Baird: Great, thanks. I’ll jump back in the queue.

Our next question comes from Charlie Brady from BMO Capital Markets. Please go ahead. Charlie Brady – BMO Capital Markets: Thanks. Good morning guys.

Good morning.

Good morning, Charlie. Charlie Brady – BMO Capital Markets: It just quick back on the margins again in this quarter I understand that there inline what you expectation was but it sounds like there is some incremental spend that’s going on for growth purposes A is a correct. B, what is the impact on margins going forward on those kind growth initiatives?

I’ll take it by platform, absent a little bit of shipment mix in the quarter relative to some end user and OEM projects. There is not kind of incremental spend in processing in motion control meeting. There is not spend as much as it is a targeted placement of growing the installed base in the couple places. So, that process in motion control, on the water side there is clearly additional investment that we put in around developing some further developing some alterative channels through buying groups and other things as well as expanding in certain geography. So, that is through spend that we feel really good about given where the market is pointing to. So, on process in motion control I wouldn’t read into the fact that we’re spending a bunch of money beyond really targeted placement of growing our installed base in water we clearly are spending a little money to make sure that we are setup as broadly as we can be for the market recovery. Charlie Brady – BMO Capital Markets: Okay, that’s helpful, thanks. And can you just – in the stock-based comp and LIFO added back into adjusted earnings, how much of stock comp and LIFO is embedded in the full year guidance?

Well, if you look really on the based on the page 10 of the presentation we lay our stock comp assumption of approximately $10 million and LIFO will be approximately $4 million to $5 million of LIFO. Charlie Brady – BMO Capital Markets: Okay $4 million to $5 million in the LIFO, thanks.

Yep, $4 million to $5 million to LIFO for the full year. Charlie Brady – BMO Capital Markets: Can you talk about market share gains in water, can you quantify how much of that kind of adding to I guess a baseline level of growth.

Well, I think if you would look at any I’ll say readily available metrics around place or non-res starts etcetera. You will see that market is still contracting and is expect to contract in the inflection point is really towards the end of the calendar year and growth behind next year. When you look at that contrasted with Zurn business growing in the mid-single-digit consistently over a period of time then if you look at some of the more readily public companies we can peak with growing substantially below that. I think it’s pretty fair to conclude that there is a market share gain that’s occurring in the non-res construction market in the U.S. The same is true and we would look at the water infrastructure market globally. We are talking about a business it’s growing north of 10% and it’s not consistent by geography and it is project based, but we feel like based on our coverage we’ve got 250 direct sellers all over the world, we’ve got low cost manufacturing and the ability to fill really any project anywhere in the world, we clearly feel like we’ve got an advantage there that we are capitalizing on by one doing some tuck-in acquisitions in geographies and adding to the product basket as well as setting up capabilities in countries that have a reasonable line of growth and large markets that we don’t currently serve so, I would say that we are pretty confident to share gains just based on those two things. Charlie Brady – BMO Capital Markets: Thank you.

Our next question comes from Andy Noorigian from Vertical Research Partners. Please go ahead. Andy Noorigian – Vertical Research Partners: Hi, good morning guys.

Good morning, Andy. Andy Noorigian – Vertical Research Partners: One quick follow-up on the water investment, when do those rapid or is that something kind of going off to the rest of the year and we don’t see that kind of anniversary into next year.

I think it’s going to be an ongoing thing for us, we’ve got two fantastic groups here in Zurn and VAG that have been – I’ll say substantially reconfigured and organized over the last couple of years and we really now ready for what we feel is strong growth market going forward that doesn’t mean that we are not going to see the margin expansion that we would expect to see in that business overtime so, EBITDA margins is 15, we clearly see on a combined basis up into the high teens over the next several years and you will see it improved sequentially and you will see it improved for the year. So, I wouldn’t say that these are one-time investments. I would say that the recurring investments are going to make to support what is a great growth business. Andy Noorigian – Vertical Research Partners: Okay. And then in VAG kind of outgrowing double digit is that a mix negative on the margin there in the business?

It would be mixed negative relative to where Zurn margins are yet at present, when we look at the fundamental margin profile of VAG versus Zurn, it’s just a different market and a different business so there is going to be an adverse mix relative to Zurn, however, we feel like we can get the VAG margins up to what the fleet average is today and beyond over the next several years. Andy Noorigian – Vertical Research Partners: Okay. And a rough question for you is there any color you can provide on the PMC short cycle distributer markets especially towards the end of the quarter and may be how that continued at least anecdotally into July?

Anecdotally, if we go back a couple of quarters the sell through in distribution in December was really poor minus 5% or 6%, it went to minus 1% or 2% in March and it was actually plus 2% on a sell through basis for our categories and our products in the June quarter. So we are seeing it progressed sort of in line with what we had expected I think the first week of July sort of tough read just based on the holiday but for the quarter. We don’t see this contracting we see a sort of and that sort of similar to 2% sort of sell through when you look at the second quarter or second quarter. Andy Noorigian – Vertical Research Partners: Thank you very much.

(Operator Instructions) Our next question comes from Julian Mitchell from Credit Suisse. Please go ahead.

Hi guys. It’s Charlie for Julian. Just a quick question on the mining you guys mentioned in perception as a mining company and I’m kind of moving away from that. Just in known for the year I think you would mentioned you want to confirm just for the year can have what the base wasn’t 13 in terms of kind percentage of sales mining contributes to PMC and just kind what you’re expectation for growth. How much growth will be down this year?

We’ll if you want to – at the Rexnord level it’s about 4% if we look at it what was a percentage of PMC it was about 19% last year, which compares to 27% for aerospace in food and beverage. We put the – when we walked into the year we felt when we have planned that market to be down between 10% and 15%. So, we start doing the math I think you can see that $250 million market for us what we substantially migrated away from coal, coal is a big piece two or three years ago its only about third today another market outside in the US representing the line share of the market. So that’s those are the statistics around the market and everything else.

Sure. So, obviously underlying growth in the rest of the business and then just real quickly you would mentioned just pot ash and obviously (indiscernible) past couple of days that’s still fairly you mean agriculture is still fairly small for you guys, right?

It is but it’s a growing will most of the comments I made around diversifying end markets. So, there is a tremendous opportunity for growth if you look at the pot ash market in Canada. So, we’ve been working with really the end users the drive specification of our products and we see that is a growth market for us over the next couple of years, that’s really when you look at what we’re trying to do its really grow content in adjacent markets with new customers. And I think it’s right down on the fair way of what is we’re doing to diversify that end market to something that’s fundamentally less volatile then some of the historical applications.

Okay, thanks.

We have no further questions in the queue at this time.

Great, and thank you everyone for joining us on the call today. We appreciate your interest and support and look forward to providing you further updates when we announce our fiscal 2014 results in November. Thanks a lot.