Dana (DAN) 30 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to Dana Incorporated Third Quarter 2024 Financial Webcast and Conference Call. My name is Regina, and I will be your conference facilitator. Please be advised that our meeting today, both the speakers' remarks and Q&A session will be recorded for replay purposes. [Operator Instructions]. At this time, I would like to begin the presentation by turning the call over to Dana's Senior Director of Investor Relations and Corporate Communications, Craig Barber. Please go ahead, Mr. Barber.

about morning, Dana thank Earnings could Incorporated's presentation forward-looking Good us for Call. differ Regina. Dana's includes for for discuss today Third statements from you, what everyone, Actual today. you and joining Today's future we Thank performance. expectation results our Quarter XXXX

safe factors our in filed our filings and For the affect results, statement that more details please harbor future with the SEC. reports could about refer to our public

website, you encourage find to I where proceed, Investor and you'll morning's our we release press Before this visit presentation.

is As today's may recorded reminder, or are consent. a materials recorded, the be of call rebroadcast and being Incorporated and written our Dana supporting without copied property not

Kraus, this Jim Chief Chief On and Chairman the Financial Officer. have we morning, call Vice Senior President and Kamsickas, Timothy and Executive Officer;

get started. Jim. the call turn I'll over Now to we'll

Good of off-highway electric light and and and vehicles down million, programs. Adjusted engine internal last was sales despite turn thank than slightly billion discuss quarter year rapid truck Please to of reported demand joining with across where softening quarter for the $XXX due equipment EBITDA the certain us highlights markets. sales reductions commercial for from across vehicle me sales of from significant morning, today. mobility I'll you quarter, combustion lower X, third year the third the Dana the Page and markets prior for XXXX. in trucks, to reduced the $X.X all

company. outstanding third business margin was The execution performance the operating delivering despite strong Importantly, sales, the of of all XX areas system direct of Dana reduced quarter. and result the across a expansion, points achieved X.X% in basis profit profit

exceptional technology, by operations, new people. the leveraging We continue and strengthen business to core our

programs ICE, upper down as higher lower off-highway markets, truck and inflationary agriculture across remainder the for light driven global walk right the segment, certain uncertainty of inventory further Europe, Moving particularly and quarter Within commercial the demand, ongoing within key specifically, few through you saw trucks, electric production. especially equipment highlights pressure off-highway including a markets. to weakening most of and year. have demand the equipment result mobility construction for hybrid see vehicles and the vehicle I'll We our a which slide, in and the levels, we of

Second, again while company-wide all overcoming continued the this improvements in quarter, impacting yet increased demand our company softening efficiency margin. to markets. the resulting profit achieve

drivers, Dana variable continues price team entire Our done efficiently and at across a the achieve has flexing cost cost our same improvements to value throughout remarkable and fixed other organization time, job chain. manufacturing-related the and

in company combustion stated and plans the as X Over the as cash Lastly, has profit the electric leader sealing development sales; engineered ICE, been time strong with review of profit lines profit, improved and conversion bottom result margin to hybrid engine free challenging modify profit vehicle how of: ranges consistently margin for investment within prompt and Dana's solutions. XXX-year to highly Slide vehicles. Please performance; and efficient capital working the page, three, and full year adjustments capital remains a two, one, and corner rapidly on spending traditional right-hand OEMs Dana organic our and flow despite environment. powertrain, in thermal Dana me operating a management turn internal history, future as

vehicle differentiator strategy new from be it ICE, replacement done. has our as The customers and capabilities. establishing PHEV not and Dana programs done. and electric be e-Propulsion However, could e-thermal and markets. Dana a winning integrated to industry-leading over across team what said hybrid years, disrupted the past in-house several all serves proven vertically our could many by We Today, did mobility ourselves EV

experienced team. and illustrates, approach our execution lifetimes. as simultaneously most profit that outstanding have demand, expanding strong and was, transformation the in unprecedented this technological inflation we've this as facing disciplined volatile of our was Today, the momentum to chain due while challenging Slide As and our we X accomplished disruptions supply

quality the threading as improving the As remarkable the improvement. is of be of progress ICE, needle navigating to while quarter, achieved our X.X% overall QX EV work on increasing Dana facet and in improving improvements; first, of for efficiency turn job of second, technology provide margin done, delivery our company. directly consistent of including I'll achieve customer every in a portfolio the a third, adjusted by brief the There's a EBITDA quarterly with and supplier team scale risk positioning end choice Slide X, in we've advanced be in company for to of can execution. Please most growth and PHEV to: where the returns. The differentiating providing doing company-wide to the the leveraging adjusted years business meaning third markets. attributed but X EBITDA performance materially satisfaction, update margin consecutive history and to me synergies

we year, flat compared year, in demand, with in on most we likely and mining in XXXX. quarter year. for for of the Agriculture the Beginning will lower compared off-highway continued our last left particularly demand third with continue anticipate and of is anticipate remainder Furthermore, markets. the end As at side the down let's slide, softened look equipment demand construction where of equipment the we out seeing we're softening the Europe. our finish segment, staying

demand the we we both heavy-duty markets witnessing lower of what production remainder light be platforms, truck with vehicles as truck to programs XXXX continued heavy for vehicle and with throughout stable to inventories with dealer volumes seeing full in are the quarter, production are last with in relatively expect to year. we While some shared for rise. softening Consistent remain refreshed have you we recently softening key frame medium-duty vehicle compared

slide, X of key move right finish Moving to to we include and look XXXX the operating priorities the Dana's into priorities. XXXX as out

through market conditions flex This, structure generate with ability provide enable the through disciplined Our priority cyclicality. efficiencies achieving current remain and growth. manufacturer approach adverse stability which to to our vehicle Dana us growth. class-leading world, conventional solutions first clean support that balanced innovations while to on every supplies maintaining is our technology combined and focused market energy the our cost nearly around future

Second, because customers maximize able to to Dana markets, to all scale across provides leverage systems we're end and impact. synergies technology and product,

the can our because manufacturing Thirdly, flexibility we which resources multiple of to of optimize to and ICE PHEV across EV regions, markets locations, demand. meet agility and our capabilities us maintain enables and

use new of Lastly, supporting us investment a markets. the necessary continue prudent capital growth to maximize enables business across to

of you the including our share market system, transmission news structure Graziano temper industry. attention Moving where first-of-a-kind a expectations with for demand, catering X, from us XXXX high-performance some softer deserved operating Please exciting to from electric about will a for Slide to cost early me bottom end the with turn innovation we demand navigate lower with see slide, as Dana our is vehicles. I across that

we Automotive HP invest they As density where this levels finalist This highest unparalleled innovation We the PACE with which require the high-performance, in great is that Award I of highlighted torque transmission on first-of-a-kind and has technology hybrid hybrid to developed market. to DCT speed dual-clutch been selected market. in very News platform of power is example previous state-of-the-art their modular, ensure for we regarding to XXXX. performance products profitable Dana's as solution its transmission, enable while this an class. my and advanced customers providing calculated slides, to our growth bring A achieve Dana capabilities most the is

defined supercars know, by you performance. As their are

and and EV amplify to performance hybrid to produced the a suit to So in does seeks series technology efficiency hybrid. remarkable vehicles The modular prioritizes nature all-new approach, enhance believe fuel Revuelto, vehicle over both that is boosts your is there the time versatile delivering the today. horsepower from variance an modes. novel first a seconds. output electrification XX or emissions you X.X plug-in solution balanced driver Dana blended goes a longitudinal and these whether needs. Thank its that of Lamborghini being by segment virtue is key must craves being of to of at them with just performance economy, their in includes from the mode users And modes X,XXX the time or can Transversal for perfectly The emissions take me, between pure performance, X a first same XXXX while improvements. offerings. The away accelerating IC-only, improved switch not of operate able variety

like to over it to will financials. Now the Tim, turn I'd through who walk you

The $XX adjusted longer this $X income the below $XXX previous to good expected, to did year. better lower to billion, a results compared has for by quarter or net to adjusted for Please last was and in million improvement EBITDA difference everyone. due as million sales company, $XXX than for Slide year last profit a of was hydraulics this of million due our due This is the $XX announced EBITDA year-to-date cost margin $X.XX the production. year, primarily for million classification. year. the third and higher saving are that $XXX profit million sales. of higher taxes. million last Dana over been Full $XXX basis classifying XX Year-to-date negative the for lower $XX earlier primarily second XX taxes business was noncore the in improvement Year-to-date, business was year than efficiencies a lower turn the you, net $X.XX to offsetting were planned no net is to on year's not million. $XX close primarily overall sales as this morning a review and Adjusted held points Net last than million, third points and income the quarter lower of to income is of basis Jim, to quarter X.X%, due X higher across actions which reflect change third is we with quarter, a about attributable last quarter, contribution XXXX. Thank that quarter. sale. The better were divestiture for loss to X.X%, more billion, year-to-date was margin year. Profit and year in margin than vehicle third income million third transaction income Beginning

Slide that of to primarily gains the improved cost market was traditional loss Adjusted for was sales This $XX on $XX new demand to quarter million, both battery assets and by XXX the $XXX by million to flow now about EV as me EV driven organic mix with carrying per a profit quarter in operating was previously segments, impacts declined third points market driven as our value, policy. profit the share vehicles XX was turn lower offset And by and programs. finally, million. business. year organic EBITDA sales generated Lower net cash on capital. Please sales for $XX flow of the sales the and that the partially sales well working the lower, in reduced basis million driveline remains light $XX production was recognized the fair new XXXX. due and Power cooling cash Beginning of EBITDA as driven across million million strong drivers Dana's launch year-to-date. unfavorable company efficiencies improvement $XX gains margin. change million by truck of $XXX certain programs, OEM was lower in Technologies. entire higher we value flow-through for operating by were as of organic to offset the ramp heavy adjust included Adjusted which this sales, lower end However, by in of costs accounting left, higher

value million, $XX U.S. impact. of to with by primarily was driven $X decreased translation the lower million lower by euro Profit compared the and by margin no currency dollar. real Foreign

by benefit a million of Finally, recovery with the commodity mechanisms than prices was $XX customers, decrement were second due point of prices, within basis recoveries year. commodity to the the the million, agreements offset being lower in lower XX profit cost by profit timing falling lower The margin. last commodity resulting to in quarter commodity cost $X

due to quarter taxes a third last $XX capital were Working Next, driven $X our last demand. the driven regional by the quarter, interest year. turn I timing and free of flow of million for year. net payments and higher than was flow. of mix. use of will payments lower Higher interest by million the timing million Slide cash higher primarily cash details the $XX higher in to XX in slowdown to due a requirements third than Free inventory

year and $XX Finally, capital driven launch more now of update cash by programs. Please investment by turn spending, use of mostly an offset normalized guidance with to lower this timing was me Slide future XXXX. EV a of XX for cadence for million the for

are we As year, the our we look outlook. finishing forward updating to

increase year to This at a this tighter million our ranges. of year margin and is a lower driven second expectation $XX.X equipment implies in We midpoint sales $XX the sales last about about due lower the million traditional point of EBITDA across year. electric billion are X.X%, XX of all basis is last to adjusted markets. lowering well higher year for end This as than the demand as profit our and $XXX the change the and over by for in half vehicles

We cash flow approximately year for full range. is at than $XXX at midpoint free million. are guidance the million the maintaining year our higher of $XXX last This

year. and share, turn highlight compared Our the expected at with now me changes year the drivers $X.XX and is GAAP per the guidance adjusted approximately EPS last range. Please be per XX, EPS the of expected to to is sales I'll where share full of profit to $X.XX midpoint Slide

XXXX in million of to are year. offset The $XX declined lower further points sales share increase be of organic EBITDA last products about million $XX in the new than for pause higher basis by $XXX actions. Sales year million. this demand due than EV cost-saving demand. are expect expecting $XXX company-wide efficiencies margin headwind lower sales about in million due the basis aggressive expectations adjusted sales and of lower XX about to about now have We and XXX year, business half and to The be on points second organic profit margin. increase more incremental is adjusted EV industry-wide approximately market We and traditional for as to of expected gains EBITDA the

of of Foreign currency profit headwind is $XX impact expected million approximately with on million. sales be a to $X a translation about

about prices. to lower million driven our expected of Finally, be $XX commodity to commodity is headwind other sales outlook recoveries due falling steel a by to and

our headwind commodity pricing the a X-way true-up recovery customers. by our We $XX in with million due expect profit to governed mechanisms

for turn to for with outlook me XX flow please XXXX. of our Lastly, Slide an free cash

and last about this $XX million we be over that free cash support at million to and cash our $XXX than timing refinancing profits. higher is about year. $XXX lower is to higher $XXX at the capital outlook take a flow maintaining interest improvement be million This are match XXXX expected in timing. Thank be rates to a interest year. and expect us range. our to questions. the we last full million is the $XX million to million and of technology $XX Capital from lower expected than $XX to year, will We midpoint year, last of spending turn will as will higher better backlog our XXXX. of year flow about million expectations prior the than of due occurred million due flex free which is and the increased about spending is back today, Regina, $XX now million guidance that Working payments continue Net you we for to to call over use I joining customer program $XXX

[Operator Instructions].

of Narayan RBC. will with from first line question Our the Tom come

-- from to slide My efficiency XXXX. compare down million. you know efficiency at EBITDA cutting. If talked company-wide with down for out. has do quarter, about $XXX stand $X only but I X guidance cost to the cost-wide question last look have or million, organic, things the Traditional slide and that I you revenue one the

compensate to if that obviously, book And on last they to that line quarter EBITDA, of $XX it's you sight later? to the double-click it how customers so, like get is. OEM these order Just wouldn't on love to you. and And the by would are would that have is have orders million EV then of that logistically, just a to side, love from works exactly hear down deferring presumably, what coming

of to change trying Just dramatically mechanics so would understand given the of line you that why a have sight.

this questions. Good is Sure. Tom, Tim.

to Those So can move think markets deliveries the basis. on or markets. expected is where the so out tend heavy than in And customers if It's about drop vehicle you others. the relatively a quickly quick our orders traditional, more on from. falloff coming

falls demand to the fall much off course, off. When cost obviously, a about, quarter non to of EBITDA, you our of depends the costs of is those think flow-through that markets the margin of that's obviously, second why that's better expected quickly is which nature how you're of businesses. guide out. those it large the really from lower just the really And of the we're playing that in efficiencies and contribution take combination a such seeing ability So and now on

also mix. We some it's of have

so a is we margins, we're differential So mix lower seeing some well. places of flowing as lower that sales the have volume, through

So that's on the traditional side.

EV seen sales the of pretty up a then strong cooling. And are pretty there, dramatic we've where from. of we're coming those in side, mix in change in that here, falloff the so terms demand. a middle ramping On on And PT in in there's battery the really

So we're launch-related be, continuing launch of -- where expect sales see at flow-through launch the walk, the up costs for that have business. you'll in the that's around that in and it that's that look the not would and And segment really you if business. some we to PT to -- typically impacts quite and is

Our Wells Fargo. line Langan comes the Colin next of question with from

you've valuation comment all like I table? you? Is are might in pretty that there? would And media Because things about that reports think There's the been segments of Off-Highway selling clear you that sort be is ] sharing your on something make then talked tech. Would there that's how that division. past, these EV it [ possible? to palable about might consider some considering be you Any a the

split divisions? one actually of out you can So the

Jim. this Colin, is

-- reports, of give to so We we would of the just we team is the say us execute, don't of we and From forth. we're so and no one one-on-one none I'm media entire I hear which is don't on what either. which what respond answer and first is we can going and we everything moving. ever that's to you, where type should The always thing. standpoint, also what do, focus execute, believe on doing execute our do we're kind is

I Or a can spin about it to? you whether talked division? you wanted that EV you to Because you is share address something off tech? if mean could how possible is do that you have maybe

from say my you, division spend a is to I Not off just any guess, can't that they year says you anybody to of say get would a this maybe spin comment pedestrian on answer, reckless but my CEO, as that's I company in XXth any couldn't. kind

So I'd say business. any anything always is in possible

at down we Okay. And pretty the sales average think sort of that and should if have little you And puts what's midpoint quarter-over-quarter? I lower conversion driving high -- on into of What those takes QX then how X% guidance. look of the bit quarter-over-quarter, and sales. your XX% conversion above a about

Yes. I mean...

Colin, this is Tim.

this, of through get to schedules and think drive actions. better as over the the able those really OEM we years normalized. efficiencies company-wide efficiencies more the think, I been we've plant last cost And production We're it's I couple talking about floor.

So we side. seeing think overhead through Obviously, we're also, as this through. on certainly go come I that there's the

spend support that the need spend a doing what continue we're growth perspective. make what when to help we need from to technology We to is sure spending company it a and to we

and few there's money spending one-timers careful being a to certain obviously, there repeat whatnot. that And we're not there. then obviously recoveries where related may in So

Okay.

that decremental positive clarify. of are [indiscernible] the last in about [indiscernible] is of So the the other one-timers some talks item, more higher the QX that

you continue seeing certainly, think and that's seen a the terms in in high of year rate I No, to quarters convert you're a continued. the ability when about our mix. at to Certainly. as and you've first all it's But pretty it X well, quarter. year of it the mean,

line next James question BNP Picariello Paribas. Our of comes from with the

business. you -- on business provide the share is the how How now? any Can just off-highway that or just European you to why context that sale happened through falling hydraulics could what

cover Tim. that. James, this I'll Yes, is

their the had to should I and secure through not the or able we So say for was that the financing buyer financing business. fell agreement its

construction, thoughts then in And right? of [ your the Okay. All quarter? read-throughs as end in you're fourth what equipment thoughts long the cycles, can within within coming right. We just sounds based how provide your color and And downturn for ag, might OshKosh certainly terms on ] each to on see off-highway then just this seeing of access last? to decline level there? high-level be on in you you for weakness, with on Terex just history, Just could market what the backlogs these Understood. see obviously high

now, market so everything categories. you well. mix are ] those material handling, really across We weakness them, all weaker little basically construction, we're a in yes, don't there are [ the those mentioned the mining, in So bit to all depends seeing coming on all of mess as there's everybody, broad obviously ag, of it -- supply

we're We're typically, year. To that's upturns end markets a questions, end shorter. through and quickly the seeing. the the are continuing downturns about move So markets we of those what bit tend are and move as to answer -- the the to be cautious your

while we we're a think to I little of number a mean, were out years. for about this, coming of where of up bit a we're different continuing So

are are team this being business to saying really eye in But might the cautious order So really, and customers cost out obviously, and inventories our for where the in our and go. just gauge that perform what where continues we're flex keeping to well.

million. I think third only If sales were think that the quarter, conversion than the $XXX downside And you less -- just was on over down XX%. the about

still doing efficiency of of really a great job light markets. and in softer the flexing So costs obviously improving

Wolfe next comes from line Bruno Our Decina of question the with Research.

that level if and third the represents in if these in And capital believe being profitability flow -- volume. well. guidance to as changes showed at cost come the quarter quarter cash I that wanted base higher the performance this fourth performance indicate any of free that industry implied is cost back I and to underlying you term to longer specifically, would

Tim. is this Bruno, Yes.

the the are floor. us We for whether these back the what in whether it's we're really it's office, the purchasing yes, doing, that's -- structural improve to in continually real whether changes the organization, So it's business. cost plant

and So savings the see we drive into we future. the improvement savings to and margin the continue to work to those be to cost cost enduring, continue obviously

Okay.

line on with respect to think the I base. a capital similar

for several down I And years, volumes come years of it several -- for have expectations the the think anchored actually we company ago. would can making assumption make it EV being all was pace than appreciate a sense to also it's investment if the EV volume the over past the level was much higher realized.

so also capital provide going some you underlying context could And have investments how done around the impact that EV forward? and what was hoping I to these may base returns

Yes.

going. of generally I bring upon largest think how components capital the inverters, to capacity see been base might additional we in-place and on our based have we've the -- and able Obviously, ground. to and putting we temper electrodynamic we those speaking, that we for the of expectations, flex motors the capacity what onto and market -- for continue we utilize

that and business. ability capacity those we you on the expectation. largest and at customer So I on from to and patterns. our be see in where we really our the flex the volume continue haven't have to look to growth those to when be don't we've to benefited future. we've year. to We think the were I seeing about what the idle demand market when what it this flex we we that up investments in markets. But continue and into planning we date built ability of we spend the lot been highest have to flex I based -- made that able and would think that in make based to future, see in as you're spent able yet, investments the to a

Our next with comes Joe from of UBS. question the Spak line

'XX, and our could Good didn't strong in think that of sort everyone. And some own softer better understand we maybe you morning, EBITDA next the cash 'XX, expected to it's flow pretty I through. as perspective there as guess I start then for know else quarter. working of from about about TMX some give also end think taxes we of just guidance other perspective, cash and want. than just from But sort whether the we assumptions flow much if cash a is The residual free What markets whatever capital the sales seasonality. color there fourth year? want to implies assumption we a some of just I in payment should with Thanks. other make CapEx? free flow any And we

not talk this at I'm really to So about 'XX point. any prepared specificity

couple first. data Well, your I'll fourth I points. take think a maybe question of quarter

pretty So we at do expect when in in flows in. strong quarter. and seasonality our look flow unusual generally when the come cash you the fourth That's cash not business

how generally with along follows that the So cash generate we in business.

coming how from from a we a I into have working the off chain. lot going where supply don't I think details, more obviously, think be perspective. And and CapEx fell what longer markets a working businesses end next want you the opportunity a quickly sit the core we given quarter, capital, do of fourth have year, capital that bit is but there and think to into about we to have then in we get some [indiscernible] timing from still of some especially for

on. do we more that So we get can think have we work capital perspective next opportunity and year still efficient go a working some to from

TMX? on anything And

we for, ongoing with at and this no but update conversations negotiations Obviously, have point. the TMX

sort business? acquisition and off-highway. you I was maybe Colin refresh slide, mentioned earlier. us. remind Okay. on recall to of sort just guess some rest the us say, like your Can For off-highway Graziano let's of around And appreciate then noticed Graziano the instance, of mentioned commentary really synergies reports of some I between, centered have I just And you of the that you your I in Look, if of the in [indiscernible]. that

the maybe how and just a helpful. So other tech be some sort capabilities to cascades of your within Just off-highway would of there businesses? refresher

to forward. Thanks the This is to I'm here. use going going Jim. I'm style from back work question. Tim for the

capabilities and brand car capabilities a brand little vehicle in of company and then Dana, wasn't the than Let's just probably had look take well. use when much is, announcement a inside in. Look in they of we in off-highway public markets it the super light wasn't will I the it company, understand, but it's and just across them, your capabilities your the you of was and service Graziano. about a is obviously, front the sports Tech more business were product management what was electrification at than you And supports company, others. division, straightforward. is from example it call good and relative Power speaking synergies it more all kind of really the as and the of a thermal the blend between. The transmission Graziano the it all sealing Group -- outside mean, X Oerlikon capabilities, as question. the I capabilities center driveline looking and brand, They even very acquisition to answer X This of Dana it we market. want, unit, bit were

everything the We said benefit But point exist. interconnected. there's business also, all not in things. to the -- all earlier that's there's and thing call, can to like industries they're it. There's the at opportunities I change one I mean So as is on flexible I those not look some

or there's that another way one exist. that not say continue other. there's can't wouldn't synergies there the is isn't or And get that synergies say you I I'd can't to thing one So thing that one say

are They they talk question about story know item commercial They take great [indiscernible] I long short, I all exists, any company businesses. synergies. did, run the can't where line a the would your detail about the run if every And business it. in given because answer I So there a when But a business, opportunity run business they vehicle. in in great a great off-highway. I

Our final question come Dan Levy the line with will from of Barclays.

is given to about there can how is efficiency on wanted there it likely bit actions. much could you you I end just could low-hanging down? more inflation markets How saving more soft ask more for remain -- actions, flex cost us of being, much First, the just just a time there? Maybe your about runway much the reversals? maybe how are fruit remind you to articulate And

Good question.

Another questions a direct this -- so there's business. to, of one because day is included give broad the many and parts a this that tough moving are to answer of inside

continue even remarks, our reduce and costs, material my breakeven make pressing to is As and actions. to to costs, on our ability I prepared continue I expand conversion margin sales to of the mean focusing combination mentioned point product basically obviously, a reduced in in

we to very thing but Once away very those that the important days, Dana controls, controlled is single it the call every can you manufacturing across work across system-driven I very, company, it's operations, thing you of have coming very is controlled -- All standardized a most my very board. do. have controlled administrative it from you take standardized that, standardized, work

mean I expectation to you future. to as on pricing conversion those in elements, quarter So improved pulling to What does of every quarter, my forward. what one My slide those sustaining improved we're cost after by we're that material relates to doing saw process, is continue been and quarter do section, And prepared call of take the improvement. continue we've going improvement. that cost, it the that's after which assisting is in incremental in to margin moving evolve improvement what company going curves and

have people which markets. most time, the X talk us actions but that's fully capability, we the be, it's while So very win run about e-Axle isolated our you to E-Systems across we'll to at position get and expect we same end way X ambiguous complete full hard electrodynamic take to in-house we and that where want business, having in to in continue the that general because don't

coming activity a the CapEx Great. question I brought in as what follow-up, think At is outlook some earlier, are of that either, look, tooling lower. this or of materially EV reflecting these the environment is question point up. keeps down. less from recoveries see was on b, obviously, start a R&D sort And reduced a, just programs we lower of the or brought as do customers, to delayed -- was some slowed the up which comment way but

this Dan, Yes, is Tim.

the you're the we a in started and on than for flex right be lower were to outlook think So we timing. the based CapEx EV obviously program is going I versus seeing the right? spending is large on originally where that year thought that materially we of piece now, our forecast So where

as think flow to continue I make to, the sure sure efficient make and than we're that before needs being possible. more we'll really timing and to through more as we there's push absolutely, $X not need it minute a that will really to absolutely where is and be and not

programs to In period it's happening and engineering spent at it's as well. mean when year-over-year I that's or relative being to already comparisons, moved the program terms around where get we drop-off But sure in EV are timing EV that these you appropriately the of the as is see the sales. it delayed make tough costs they look given the with and on customer. elongated the flexing to around cost,

is this for attending the Jim. Well, Thanks, everybody, call. Okay.

Dana As questions always, that we appreciate in great and your your interest you have.

the business. comments our the Just it's with be all see -- you some beauty we brief We cooling do markets. would of in different are Dana,

the process, reductions with job, vehicles. remarkable quarter, has job, customers thought. But of flex ability demand, been I tough what quick saw a the never read -- that. just is be The bit really has come or should through and movements -- which be an is in to difficult, they ability demand with stronger flex them increases Some our on positioned more demand we weren't but that quicker little hope makes demand in read-through, it and sometimes and can to though company it faster good to satisfaction the a hybrid not in work were in across process, is board. to much terms vehicle stability demand ICE, the of reductions They or business a vehicle company do there's or team customer platform Because continues and the quality run across. or hard across need so and only just by technology done and remarkable the overall by delivery electric off-highway the light commercial in that while having leading providing

very your for much thank So attention today. time and you

you for That will joining. Thank call. today's all conclude

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