Cleveland-Cliffs (CLF) 5 Nov 242024 Q3 Earnings call transcript

Good morning, ladies and gentlemen. My name is Darryl, and I am your conference facilitator today. I would like to welcome everyone to Cleveland-Cliffs' Third Quarter 2024 Earnings Conference Call. [Operator Instructions] The company reminds you that certain comments made on today's call will include predictive statements that are intended to be made as forward-looking within the safe harbor protections of the Private Securities Litigation Reform Act of 1995.

Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that can cause actual results to differ materially. SEC, cause on differ and Forms releases with could forth are the that on filed reports available in XX-K the factors results website. materially to set news the Important company's are which and XX-Q

Regulation also it discuss items. Today's call, replay. broadcast earnings at of be The purposes available results, for archived special on G company and clevelandcliffs.com. conference available for published found being also the excluding be At certain in Reconciliation which call release, conclusion and yesterday. will is will the can the website the was

At Officer. this would introduce to Executive Chairman, Lourenco Goncalves, time, I Chief President and like

Darryl. listening you, to morning, the day election the in Thank Americans and call Good happy on today.

President have company political position it's to Throughout operated us this United very worked This domestic producers. either or clear my in XX to executive Donald At no industry or candidate States, support consistently is Trump the years that Harris with party what American is year point, will and matter to power. we Cliffs, owned different. and improve of steel benefit our a to conditions no the with by branch work as Kamala

ahead way steel companies in access world, the entire in all American are steelmaking capital of others markets. both to and technology

from the domestic conditions. We favorable have to other people American of and these we have market and willing benefit a for for steel envy that's nations, the work us

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believe accepted and points with each understood. campaign, that have heard, about been steel industry thorough surrogates a made and dialogue we had American have our critical We have we from definitely

#X officials of trade. topic with conversation is Our these

and company part of frame life We created Canada, the closed does rationale equal. all received behind M&A example, follows we United all steel within A in That's the rules time would, deal steel months. effect States, a Cleveland-Cliffs approvals the Stelco, done. for we way, is this large right While the and expected of and not like Canada. country the in are is X of how acquiring things imports the imports are the

When we collaboratively, have evening, the closed, In our shareholders working yesterday rewarded. get X and paid deal honest we results. lawyers financial counterparties provided are bankers Stelco's release and

market, on resilience good While contractual operating well versus on that as relies amazing a best-in-class market driven structure business and cost all emphasis so strong stand-alone Cliffs the steel scale, smaller in not of substantial the upon. as provides Stelco by a book primarily in a sales upside spot

will The current towards is these conditions, centered acquisition us Cliffs EBITDA to the serving margin average overall stand-alone of allow the market company up of on the Cleveland-Cliffs. industry. a primarily automotive Based Stelco

Our footprint specialized steelmaker. efforts technical with customer along are equipment that. capabilities, our nicely distinct other humps humming, service our material and any automotive is flows and When our from robust

associated to we is well the nonautomotive of costs as more us better With improved, Stelco configuration our expectations, in our to industry automotive like significantly where environment suit serve making slowed an structure the cost overcome. down in Conversely, the company, become below to overall had difficult fixed our QX, part markets.

and These cost and supplier to thrive a health nimble runs end spot and end a to markets levels pricing lower layout, their mid-cycle, documented, currency, peak well selling They centers, automotive are power much plant As of advantages. primarily Stelco geared iron to trough service because and these are costs. users ore advantages care no at operation. cost cost, fixed

low new X. Works the benchmark Erie operating cost footprint became in Lake day of advantages, from our these With

the are that generate numbers experience Stelco at the $XXX above, we the EAF year. America, our and both will for acquired cost AK we underperforming acquisitions on structure Steel anyone opportunity and previous than leadership, we proudly Erie underinvested mini hot-rolled standout the cost its facility. to each convinced to them, else's Stelco North lower the either when keep the in are its from have which mentioned in million operational acquisitions within flag USA, of or synergies is continue will and most ArcelorMittal Unlike Canadian the invested were Lake name, unquestionable. Based fly structure well mills industry. first of of and is performer a Our included, and

kick I it for will now Celso to remarks. his

Thank you, everyone. good and morning,

throughout by and on our EBITDA million partially X.X which impacted great shipments of were These team. by the pricing tons Our by steel results were factors a weaker of $XXX quarter. offset third million quarter, QX during drove adjusted the performance demand cost an

for and XX.X at automotive around with semiconductor lowest The build X.XX which American rates expected is less QX were a the time years the ago, was about only units North since automotive fell position and year units Overall, last a this of the builds average prices million expectation few compared both X what in this the prior shortage per million is $XX selling built also during margins and continued quarter. in depths shipments, nonautomotive supplier, latest quarter-over-quarter. units, the than unit our million XXX,XXX price our plate. pricing, automotive as selling to shipments down With and saw large And quarter. tons compounding business fell average year. our flat-rolled this in ton weakness this, drove demand

their center The furnaces we idled production market weakness, during temporarily customers about X.X improve. activity annual capacity, temporarily takes plan both idle demand net in as until resume our ongoing to with don't to the blast one and we offline Cleveland reduced third million and order book, of align tons better quarter. operations our order of Given the conditions automotive service

our The reflected at by guide operational at capital adjusted in well. quarter, cost running the tightening absolute previous both despite mills level ahead $XX SG&A a operating our unit came of spending was we as expectations costs From rates. basis. both over an and ton and per the standpoint, costs exceeding reduced on reduced during mix This belt

our substantially same a below capital for our $XXX to lean Our and quarterly lines, budget X million similarly spending approach taking these past remained averages SG&A for $XXX are capital we expenditures next Along of the million years. year. of

We to CapEx a and across for $XXX million Stelco an be XXXX is of updated needs footprint on stand-alone a estimates our and on basis, our growth transformation spend capital X have reduced projects Middletown, since lowest ex XXXX. Weirton. the at guided which This would strategic function Butler spend of our in

said, recent accomplishments finance improvement contracts improved to In the completing close front, XXXX, we the on most of impact to necessary tune $XX Stelco year-over-year. of our favorable we're critical the That see supply also a coal the million the steps acquisition. cost

a acquisition the term As we originally you including loan, may unsecured high-yield and ABL. a combination to instruments, financing intended our of recall, notes secured fund with and

the the heat structure term noticed secured economic story we position strong the downturn leaves in and The receptivity to deal we began markets. group when market bonds us needed to delever to flow flexible ideal an to as starts and or quickly we cash to up. financing investors, could conviction either resulting and loan what to weather tapping any the as we But without

Stelco future flow share closed, have repurchases be cash repayment generation. we'll with Now that reprioritizing we debt over

The a tide make Stelco market the been for to this amplified even of current our the regardless that what to the liquidity navigate in continue we EPS the nimble ahead, our we're for credit positive, a reality. long get today, cycle. is ample who it's accretive, the down-markets. American soon. we and Looking consolidation, expectations deal acquisitions turn in easy has thrives to upside maintain and And North The part that to in seeing on assets expect footprint what the exactly XXXX, operation is we and to we of on the Stelco to flat-rolled time, the do need wins need is assets. further at with Based bullish election marketplace, that

With that, to it pass I'll back Lourenco.

key In you, of news, X to well. X projects progress Thank continues other strategic Celso. our each

allowing efficiency to Department Middletown received for Phase us approvals X our proceed. have Energy We for at funding and projects the Butler of

for late we early to all plant that have necessary to equipment at report ordered are Weirton, XXXX, As of the XXXX. begin in transformers transformer our pleased we making

a joint technical expertise our customer this a and relationships space. with in complement feel can partner who secured capabilities, partner have We we venture

term. We news with more will near to report respect the the venture partner in joint

we with most electrical internal Cliffs site supply side, Pennsylvania already and and large to grain-oriented From bringing all of plant. a plant the are place, the in a of the essentials our and table, importantly, workforce, Butler, from steels a lot built the skilled

sales target were been change and the quarter reflection Our have not a industry prices us weakest COVID, forced results should think certainly lower. environment has our actual X mid-cycle we achieving our million-ton what of even since a be. was Demand in it to would third

our historically done furnaces. with similar in discipline we by and As markets, reduced idling acted blast have we production

of based certainty, on forward, our interest strong getting and automotive nonautomotive onshoring, election more Going a trend and comfortable for and import businesses. economics the forecasting XXXX more we both manufacturing are rates, rather falling

to workforce. my I'll note of our end remarks a with recognition

best ever career in industry. in metrics safety Our steel in I XXXX are have the seen entire my

We you now thank the X,XXX team, union Welcome year. added Canada. one of support USW for members partners, in our you. this have for Specifically each officially your we to another

turn Darryl will to for Q&A. I that, With

Lucas Securities. Pipes [Operator questions Riley Instructions] line first the Our of come from with B.

mid-quarter, closed the wonder Lourenco, given of you I speak Congratulations QX could on Stelco the to if and close volume, the deal timely maybe that cost expectations? price acquisition.

expectation. talk and market on I'll volume Yes,

cost Let portion. Celso about talk the

next very back I by believe on will we a clarity, will far are next the normal orders our and soon As fast. the placing that half as we start that to am I election, in up going more little days of to first have as volume, year. hit QX. clients, few as strong customers volumes believe a have And which start happen should the we anticipating to things

starting also automotive coming is of to that decide their I this Cliffs. lower to to the business And least believe X the for go are X the big decisions. that clients, of prices, already pain back at feel that

we absurdly as should the us. side the prices low business let So answer coming I'll away of the will that automotive back Celso portion business question. well much have for the be of taken to cost was better to because

stand-alone your QX impact We'll big selling little average bit automotive Lucas, standpoint, an a the a From a and QX auto HRC basis. of similar have and October to similar be level be to to expect on from not thanks Sure. for contracts. it less comments. price and Yes. a we

standpoint, shipment From a up. will little a us obviously bring stand-alone our QX, of in kind be lower Stelco will but shipments bit

what So basis what from gets on of Stelco. from bring kind we we stand-alone backfilled lose a

levels shipment similar expect QX can you in to QX. So relative

of months likely $XX as given contribution from standpoint, will that, having in footprint HRC, from of, a And pretty outage, be and working well. million will be should from for CX million things deal. mix impacted build get weighted it to Stelco a then capital, from the we toward the closed be more then minimal then And like X it, from related obviously, the in inventory QX. as we Stelco, costs could other like And from where a see partially things $XX We'll call obviously, release offset but to acquisition will be receivables. it things

Bigger picture versus the CapEx a reduction for question very commentary. XXXX, prior on meaningful guidance

attribute could wondered that EBITDA. the EBITDA still could going with million Could And strategic $XXX flow add $XXX us you the through you're of through you if So could walk projects? projects your remind various then I quickly and million maybe outlined to changes. how that that you ahead

Lourenco Look, Yes. here. Lucas,

of ArcelorMittal maintenance the We what we the the expect will catch-up of the lot last in back we we one automotive are money the equipment, CapEx particularly bringing of terms spent in the to demand. and a needs USA. the with ArcelorMittal year acquired our in is be structure. had are. really from equipment to bring Remember, that to terms to bearing assets snuff, couple lot what next of do we And running the years a they now basically of

as are Things don't would as much we spend good we shape we So far it goes. need going as to as the equipment in forward. need thought

are it's thing not some their as our really that is fast XXX as back that clear completely are The hybrids. said starting to to a some and they that doing going on electric other strategies [indiscernible] transitioning Actually, they vehicles clients would.

-- are of upgrade forward. be. So change that to spending less taking grain And what makes spent to a to with clients things to eager we were automotive salt be us say for going the they they here would money

that's So a when you price-driven what get are as client. you

to be. our bringing be what they expect aggressive in So we're going to lot equipment less a us to

As previous $XXX the to maintenance plant, prepared to good in said there in that CapEx to anything as than is and CapEx. The from Like different don't shape. far I we spend normal new $XX million acquisitions, Stelco, are we equipment as do going between my meaningful believe course. we remarks, have in other believe million

a And overall the anything so And realistic. don't the positive. And I higher very to what to net celso impact number just to price add be has environment, with expect is that pretty if we said. know I else

Yes, sure.

the of And to portion, So year, I they about we've same spend but reduced as put CapEx and have level, is call the And million And then an out. level terms million. $XX net portion about the is spend, when then the is stand-alone. in of the Cliffs then you Cliffs investments, you XXXX in portion $XX in Middletown savings will in end about XXXX mean about next XX the we million. Middletown offset the just so Cliffs we numbers $XX the are sustaining million. to for forward spend, add the other it, look Butler That's some down for Weirton to year, capital it, strategic the $XXX the cadence X to Lucas,

$XXX million next for you year all add total another, million call So $XXX $XXX in and million for million, you to around and Stelco before $XXX it, about brings Stelco, XXXX. for is then

on the timing the of projects? the from positive contributions And growth

of Lucas. Time say contribution what? sorry, one I'm more time, of

growth could you to... these speak and In contribution the from Middletown, EBITDA Weirton and projects, terms Butler of

Middletown is operational project. a by we Middletown, be will XXXX. long-term

time we the we official of early -- right are but long project, still a 'XX fourth the now our time I'm start to be it there. hard long have frame it -- a XXXX, XXXX. fourth up but quarter 'XX. that but working on earlier, XXXX get a first the So still plant in takes of sorry, It's long, will to little quarter late And of is time frame quarter probably

late that end So we time, we're actually Weirton equipment has XXXX But long all next and should by be projects, but with these big operational of are receive time year, everything to early the goes lead like that. well, need frame. assuming working the XXXX, things the

question has next of with come Lawson the our from America. line Winder Bank of

cost $XX in potentially savings costs on something per into into QX. for of maybe Is heading Celso, heading Pretty just you, magnitude remarkable achievable ton of QX. that QX?

the Lawson. the I a comments, we've Yes, like thank for we've said, Yes, you -- been belt tightening lot costs. on

of is cost performance here very the we I'm quarter-over-quarter a a of the that's remarkable. were So proud guide really of to versus and our We XX, from team $XX difficult do. ton standpoint. accomplished what down

commended. be should that So

to And level continuing improved XXXX. that think, lowest and from QX the are be comes costs disciplined. just operational I since, These efficiencies

also So X is idle, but which bring we up. to going we're -- bring Stelco side, lot the have down. obviously on going to the costs benefit continue big is be going costs benefit us a a to cost to Cleveland

QX, the as to have of you we'll going cost same So I guys costs into bring reduction continue to down but magnitude expect seen. wouldn't see

fairly up stable Can Are Okay. year's just question a Well, pricing terms as maybe contracting to follow-up X compared to we at cycle, I that would how so on the in looking the pricing? prior and the that great. contracts, October of current contract be there? follow ask

that Look, terms did of clients not of move the October were the tonnage. in Yes. part ones much

them move at of all. One didn't

foreign-owned operating a competition in the with of dump normal companies. not in formented was So to marketplace, lot I the the lower we throwing taking prices more But that no course. only had models, borders here so the by United the in inside Greece new States. flexible make mistake, that's be prices,

a going we the had new the and be did, but let's very one, learned dump a are we had have inside we we to and we block. from I from at XXXX, We acted second almost what's foreigners is upon. dumping happen, allow dumping inside. from But seen, outside. can't that They to to but the to development in that believe I see good

the of clients are but year the for next that prices the contracts go is lower X to prices. lower, except the So really tonnage of for elected preserved, to our

the So competition. that X are really the car coincidentally, these are underperforming manufacturers

to next a lot work going there's year. done of be So into

are We prices. with Stelco. good We acquired

barrier to a have now big, had suffer the big, let's big to and We QX, see in that situation XXXX. we through

next of with questions line De Alba Our Morgan come Stanley. from the Carlos

Stelco. closing on Congratulations

higher slightly? expect least given mix down then Stelco, spot do quarter-on-quarter prices Celso, sure make to to with higher Just in quarter-on-quarter, HRC the at you be on the prices quarter then fourth -- with

dynamics at the on probably just Carlos. moment, all given Yes, we going that slightly, have the

And -- on Can XXXX. little probably decline this, I evolving if Also understood auto prices. Right. average a top you on you XXXX? other fixed will in versus prices bit about what have Lourenco, prices sense. XXXX how are guys then those correctly, Makes of for the industries you annual talk would

Look, Yes. the about automotive contracts. correct you're

Nothing prices agreed our a tons. about per -- we all all it's really change to now with It's meaningfully dollars far, slightly lower standpoint. renewals. the So in from ton

domestic see automotive-driven how dumping in insist XXXX. underperformed business with a fact. the not a been factors and market. in more project. most by -- QX. than cars the the of else from And domestic lot That's in many being Let's will that market common We I inside themselves supplier, we've the suffered into They the anyone

We believe What contracts, number, will low Carlos? where think, the the number. more up. same. will price it's minus see CRU go For let's CRU you don't I go. that do of single-digit other And It's import.

Yes. be without prices less sure, for supply, But to stronger. Yes. tend

overall just big reduction on Or you lower expecting any XXXX? highlight on of maybe in what that to wanted of that year else initiatives explore cost next And the and else expectation the for because for cost year? lower coal is be $XX anything coal on Are side, the will side? the I you Now what cost, next contracts. can cost terms it million

component new big we outside capacity we have spare on that Canada footprint Stelco. a less significant in with in coal for will company. the our buying found year. We very That's will definitely be And that, a next making at

terms costs of So significantly in very costs. our affecting cutting

need the a are exactly we a in negotiation, next Celso? that going be to the But will with else, be less but quantified existing will significant the be contracts. go that be impact because through going forward. will haven't to it more how We the will be, we tons much number in The tail lot outside. Anything of XXXX negotiating

also Yes. right? No. costs, the that The ASPs exposure. from mix will Maybe a just selling out, given round to allow both sides, Stelco an be spot if impact benefit. QX average Carlos, me, impacted this here will bring you less will will QX to their cost come just both and on with be prices But and right? on rich

then XXXX, the you other which costs there as and And think levers in are other increases into And very like such the alloys things or coal I scrap, going as mentioned other will then about that and say, should offset see we reduction that are drivers, cost in meaningful. labor we'll costs.

got think it of you to So altogether.

of from with come the Peterson questions next Our JPMorgan. Bill line

environment. back come to to Wanting the market

demand. You touched weak on

that things inventory this trying is where expect? seen about sense on have customer of I that talked occur. to you auto through just get any weakness, I'm especially You also just heading other or delays you when get snapback to sense into unlock pockets going election, the could weak of a a could guess demand.

well. driven the high giving continue day are to a very in after talking is and how fixated keep of is the are about go the It's after go they the basis by day Bill, things interest economy fishes Yes. fed and rates. to interesting actually how interest see are They great And that rates speeches weakness and more lot demand day great. And things they with XX then all doing points. up.

is goes life. years what X the new -- prices In because a that's car wants Suburban. higher, and change, life, dealer, to real years, the X the [indiscernible] in consumer in years. and tell steel a X in to real not replace because doubled let's He steel he that happens not me has, of old, did but with Let call the

So that's one. number

of two, the almost nobody number And really price finance. They pays cash. tag

plan dealer plan? a to X.X%, payment -- So he's you rate. -- him, has then are can interest rates payment don't going sure You a like "Okay, the that from you you want payment you that increase interest can't X% here." a Equinox this And X.XX% to I tells can give plan have your

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a saying I'm minute give in about the think to for and I'll call own about think So people what situation. your

better like you good, know but house, to go mortgage a and my I'm a sell sure to company the to I'm X% the be I going You just I'm for to high achieved. my want to if sure -- this because not go I'm rates what, afford into interest what people do house, target higher to is -- able not interest new would country -- be the mortgage. the going for That's if

quickly. the down, Once the shape. good market in rates very are to this time going interest again. away is We it's get time bring of consumers weakness It's goes and done, to

interest is drive be infrastructure. brought But you're this We it I not to to the on -- past, those reasons. seeing be seem in speak the you rate But any car more broadly, and Maybe may feels plate question are market? seeing as my in the sensitive, you this delayed. a continue up to be signs next what projects I XX-year-old like there? infrastructure-related won't make can Yes. still actually for

The infrastructure X have are what's projects, high. so on they between is is tape, second the interest this to One because problems. particularly and And inability local. rates federal what's red finance -- one the bickering the

So that's also affecting the big ticket items.

I was money using but corrected the lot more delayed because a because should through consumer ticket year because we're projects deal as is life-rolled that's be We in the with our expensive. what day-to-day well. in business next They see we than here, flat being lot more a plate, items. big

we that's So what expect.

next Citi. questions Alex of with the Hacking Our line from come

have Stelco of just quarter but misunderstood, including on the I that [indiscernible] XQ Stelco, shipments be commentary flattish, correct, question be your for I tons. follow-up should a heard one volume, XXX,XXX of you On should if Celso. maybe I around said

just low. awfully wanted that. seems to that double-check So I

Yes. from No, down. that's standpoint the for volume of loss right, benefit we're from Stelco the -- Stelco Alex. kind for It be the a -- volume having makes CX getting up that will

QX the same around quarter-over-quarter, level. volume QX be into So should

Alex, XX. going in and and we're XX to November season this the year, between Thanksgiving December December have holiday

QX. was It's X.X tons time. tons, year, is and So QX million million it low QX QX was X.X was X. Last

always So QX less. is

be same, it means be it will around that say it So higher. the when we could

call this comments. I'd over to for now the like further at hand back time. to no Lourenco closing There are questions Goncalves

good. here for asking... Very very that's here analysts on there in the I'm -- in you queue much Darryl, everybody is my Thank seeing the one screen more

Chris from get Yes, we LaFemina can Jefferies. the

we do strong it ask take environment online? to does have of to recovery, let's need you [indiscernible]. that say, wanted are What see would cost before how just on demand online? And you the back in that bring long the what pretty to make decision? I If it bring Lourenco, sort a number XXXX, to back pricing

as possible, the back will comes soon when back demand will Chris, demand soon as back and we as prices bring recover. come as

of So in it's happen in price believe early early the that, interconnected. will all that terms And I in XXXX. year, recovery

we're -- early So expect back year. going that sits next fully I bring I sometime expect to

Yes.

think, going If see that brewing lot benefit U.S. to the are catalysts We're Chris, -- right? term, not, if week. get market could here clarity a interest we started in the be elections you a of Obviously, on rates in just from hopefully that come to here the there's today, short potential down. this a

Manufacturing onshoring currently potential lead trade increased will to unattractive. are demand. protection. Imports for There's

see Act auto You're from going will industry demand eventually to The rebound. a the lot IRA. CHIPS and of

kind those keeping bringing soon But we the of an we things do green about on. that standpoint So from we'll we're think it as are eye what as more see shoots, footprint back. a and

concerted terms I be are of demand come talking it, destroy the market against some And domestic that ones to these the how that about inside to in here are depending able to not that about the in. lot to I'm of act who's United point actions the States one some recovery, operating -- and on and already the efforts going the more States, protecting United anticipate be a the going to President of

excited, So Chris. bullish I'm about very very XXXX,

point that. more Maybe one on

see as to As that now we're pick up, soon now, a things immediate more start Stelco. obviously, going we to impact have

good Yes, that's a That's good point. point. a

see Now of the smaller that a going to lot going that's numbers impacts carrier, the Cleveland-Cliffs, to through quicker. boat maneuver we're we a have instead

very actually a point. So that's important

next KeyBanc Markets. Our with of come Gibbs line the Capital questions Phil from

name why on up saw was increase? your answer screen. I but I the actually, one, wanted to -- pop add

please. ahead, go So

acquisition, Regarding the think synergies about the those should with few Stelco quarters? we how the building next up over

from close, anything. to don't after everything Different to they because on still gave don't M&A., are we know. because address to line, full as the we other ethical, close to blow just very we house now you are $XXX the on million they -- have Yes, we year that conviction things. and know Because let inside are not they that rules companies, anything are of they did some be we blur until the commercial -- X there we starting just related you up that we

book. real We opportunities will we're over there. so do by Anyway, to see everything starting the

$XXX say million would conservative. the is I of pretty So synergies that

X, see year So to right and we'll start away.

next likely to the didn't just synergy on feel $XXX good a standpoint. million, you we'll next call about and from the updated since number going do say, on we give We will on Friday, very we'll it an guys was higher closed call. deal probably number, I we the yes, really really, but update the look the -- cost here want just to to which synergy be

account doesn't sort starting you even team. to then that going we're starting identify. mentioned, commercial take tomorrow, And now -- Lourenco of the and be we'll opportunities any over We're that with as Canada to only

So excited getting about going. we're really

And particularly over the that? And Have years, those Middletown the know projects. for then of what some flow scale I of that projects grant few to with have the and any extent, associated Butler, money are to larger there's the in a on in expectations terms lesser you you next funds? those you received

on projects, are related that. front I it's but it's Butler the ongoing Middletown me right only we absolutely on catering Yes. already We first scattered don't installments have of and to Phil, and the scheduled. received and this now,

strong know auto was seemingly year your year? the or of quarter any stoppage. some I the lastly side, But third quarter at specific of last then much for frame how ahead quarter from a macro business versus mentioned customers third in quarter second the either And just pretty to level. the X me, certainly high was the auto work on headwinds last the impacted way up

slightly because give are thing Yes. customers specific the ones of because volumes full far customers you maintained Look, that the be that performing have the we not is our are or the us. not to right. good the are less that But would new than per better models increased that we tons from taking are going client that

So -- and they and even back coming those coming are very quickly. back, folks, they're

So that, terms future the saw QX. even believe better with for in you be -- of what that we in us we will

to the sure We're your I'm giving not to without automotive going Our picture. be QX that's able was tell I what you've -- in can that. going got better. you specific to We good. on performance any model work. But numbers. And get in totally they're directionally, understand

Cavs. Go USA. Go

the are proud It's tomorrow 'XX, be Yes, be best Jersey, way we in best And X-X and now. there. in at there, win history. look And the the the to Orleans the we New season. we to are 'XX since start for will

adjourned, of we this next that X. better the forward. and Trump to need if country matter before much and Biden, do be great ours, last No important go going go years we thing or will and out time it It's the than do. thing in keep American is most to make forward X sure vote to can last One It's time it. was the

go envy the world. And Bye fulfill the of lot. and the duty are world, now. We of Thanks a leader we U.S.A. free the to our need as

Thank you. This participation. We your does conclude today's teleconference. appreciate

the time. of at your You rest lines may disconnect Enjoy your this day.