Superior Industries International (SUP) 7 Mar 242023 Q4 Earnings call transcript

Welcome to Superior Industries Full Year and Fourth Quarter 2023 Earnings Call.

We are joined this morning by Majdi Abulaban, President and CEO; Tim Trenary, Executive Vice President and CEO. My name is Allan. I'll be your coordinator for today's event. Please note, this call is being recorded. hand today's to conference. now Trenary host, will begin to Instructions] I you your over Tim [Operator Thank you.

Welcome and Earnings Fourth morning. Quarter Good to XXXX Call. our Full Year

be presentation, During President to on and Abulaban, am the of Officer. earnings we joined this section our available will Chief Relations website. call release, is Executive our along which, our Superior's earnings Investor with today our morning, Majdi referring I by

current contained X everyone turn this more factors. harbor the to that the the of call commented the Reform any filings, today forward-looking presentation in to discussion remind annual to of for Litigation Act the Form company's of on the risk statements SEC of XX-K for I report or Before safe statement to Majdi, Slide complete forward-looking statements on a Private over subject Securities XXXX. Please I'll and provisions are full safe and company's refer the presentation including harbor

be of GAAP. measures and, provide therefore, various also portfolio to turn the in measures items calculated accordance in can U.S. We non-GAAP not to comparable call of Majdi now appendix certain be non-GAAP U.S. these directly to with today. measures the the the measures of are the will GAAP discussing presentation. I'll Reconciliations update. exclude impact most the found These over and business

many and leading strategic our joining to well in very solutions on today This team in I company actions track continue review competitively a will the to we Superior positioned global environment the deliver our line, for call transformation on our and our to XXXX, thanks, operations and in excellence on on in The of growth. and tackling begin provider, put portfolio positioned will the especially for profitable results. key top everyone, Slide macro European fourth executed profitability wheel the the weighed advantaged challenging operational year. year Thanks, quarter Tim, X. as refocus us half ways profitable took and growth. a that successfully that the full back on In

restructure we which was XXXX, some While weighed GM, quarter of in strike. with for macro of business in our exit the we for were EBITDA production unprofitable in as continued year, have line of the slowdown while was sales customer, XX%, which challenged, aftermarket general to industry the our well was pronounced customers due have to to our the the taken year revenues. Despite our down on programs the half flat where UAW automotive especially in largest margin the along the Detroit year. This XXXX. with in saw declined key delivered amongst first strong most production X the in This, as value-added actions these we fourth Europe X% operations is in in challenges, recovery

execution and will is the ago will cost highly competitively be Mexico the the profitability a from footprint low-cost in on of quarter. as for us. executed that significant was transformation by color impacted to I our production on Poland. Said will in $XXX initiatives year positioned end not customer is from plant America with was of our now lower North Spain uplift we recoveries the to Poland years Tim lumpy in completed The in and industry XXX% imports production EBITDA German adjusted provide will a high-cost highly based from with plants on volumes produce our of will to the in And as provide cost Our be for Poland Mexico the our to industry. based advantaged but production only automated an pleased migration am Germany, as in the wheels is have advanced Germany Europe, reliant restructuring that by well quarter. leader production our our local more that Further, X be as that, half this will of wheel in behind this. Italy. another Germany Poland. In have in low in fourth strategic million. place transfer Superior with This like in This Germany, also way, U.S. by migrating of from to the all or locations in China local all

business long-term Further, excellent an position our strategy and play compete our in growth. to put have deliver We to out. portfolio continues

differentiated to capital prudence. investments adjusted to Despite requires This contraction down team through which OEM XXXX, with now of has an growth. generation million. I especially in inventory in $XXX shipments. Other from consistent an capital this actions Further, for grew are drivers demand $XXX debt XX working all-time fourth and per on done accelerating job FX our Content bit We later. control, larger lighter capturing content continued supplier in inches is wheel and exceed XX% our further, Content declined focus our and quarter, even lightweight. through million. our significant driving XXXX are cash net also of wheels discuss a will portfolio, and of management our of compared wheels Germany, early of X% exceptional terms cost larger safety the low

capital of metric, more provide strength metric. of impact we on detail cash-generating cash structure, Tim our a free business, unlevered the our will excluding this introducing the are flow. highlight new To

$XXX of cash impact delivered Europe in million by free and we the in in Excluding flow unlevered 'XX transformation, XXXX. million way $XXX our the

revenues. expect portfolio to back would year. in completed, in as to our margin we North in markets expect expansion volumes our production we digits of to to expected is Having flat. the Europe said single while 'XX, deliver in decline remain America ahead the markets Looking that, experiencing with half have continue of European industry the industry in been low transformation declines, we growth our significant our And the 'XX combined expect

narrative. and which Moving Slide further on Superior's X, to supports growth profitability

of XX%. declined close actually sales on we top more enough slide. on. have advertises right value-added versus the since more This sales, mostly as over outlook of have consistently actually production pronounced before, by but highlighted exited This exited years. left is the we've X been sales the seen on close would X.X a as in delivering the that last track outperformed important million consider as on profitability, percent Superior's slide a portfolio is in executed actions in and of Europe. Equally of EBITDA as to growth time market industry which have will spend bottom right the and record we pruning wheels, measured both our market than We the with this if we X%, percent has net value-added we XXXX way of While performance has

has Superior of percent the lumpiness our of as salient has that XX% customer XXXX disruption 'XX, VAS average profitability around supply adjusted sales, since hovered a impacted between is peers. a despite [indiscernible] our our is XX%. at bottom This recovery the chain you -- Actually, While volatility, net EBITDA as top and customer consistently adjusted is in EBITDA pressure. value-added more percent at end the X% see which of at average been sales, inflationary right,

our provide transformation. To on So X. European on update to an Slide moving

executed Our teams successfully have initiative. this on

from to the all that, by quarter. to relocated first our end And production of expect with have the We Poland. the complete operations been wind will down Germany German of

XXX% As in to we'll this cost our that profitability provide footprint I wheels Mexico low local-for-local in advanced mentioned, Poland. only will in of our but significant uplift is to and in a have not and half produce Poland Germany, cost

$XX supplier EBITDA as to In $XX uplift, we $XX million safety cash addition and to in million expect inventory the $XX a we recover terms. million also million realizing in unwind benefit

improve expect volume in overhead Poland from aftermarket rationalize operations improvement as Further, administrative and and also in further Germany. are Europe. absorbed absorption continuing our overall in warehouses structure to cost cost We we to consolidate we

of operations. have should recoveries combined European we on and XXXX. a margins the and the with executed here Finally, labor impact recover actions dialogue in customers our these On with basis, on continued well significant inflation a up have to energy commercial

has Our focus America. region been North aligning that the of on here margins with

So in same. be improvement looking a basis expect between where actually, both in the we gap And margin the half margins XXX to see been time since the are margin regions. to the narrowing point we first will of this substantially of year, X the second in here be Europe, our the at to least I've regions

So we're very excited about that.

our incredible generation. EBITDA Turning that on on X, which transformation to will highlights Slide have European the the impact

million we guiding $XXX 'XX. of midpoint adjusted EBITDA While are in

Poland facility. Slide and of the market. combination is the highlights the SG&A the operating market as leverage adoption growth and expect the European the from tailwinds and portfolio continue as of finishes transformation that enable cost run improved over utilization larger us to completed of half. accelerating savings along in This Polish transfer to regions, will back profitability year will the of manufacturing in improved X, first higher industry the secular wheels hence continued consolidation of premium drive to as approximately The We well and rate administrative by half to growth. the to our have recovery outpace trends our from million wheels our continue of driven $XXX we of functions with lower reach

a next annualized as growth in adoption of for X of we to here growth X.X% to where ship technology the of a our our our support grow portfolio products. value-added to the differentiated demand sales these through of versus strategy here narrative. highlights our a achieve XX years, listed are play The to 'XX. The were percent CAGR technologies to we listed capture expect technology a historical premium a to our couple Each percent out. total Slide of capitalize really proof as our of slides next continued on trends, we has -- X.X% has over revenues portfolio market our XXXX. of continued As equating points accelerating

and of with has larger continued In has grow. finishes premium fact, Light-weighting the wheels aerodynamics accelerated. while adoption significant has content ever to

portfolio percent For as XXXX have example, XX% our from in in this a to doubled 'XX. Slide further. highlights XX% light-weighted wheels of XX

are launches will and in that programs in beyond. wheel Looking at be production our 'XX in 'XX. These

can launched of than further half we in the technologies. line-weighting of more You wheels see have acceleration 'XX lightweight,

growth side of the XX% our since slide, another to expect the by the right on driven XXXX. has you continue where said wheel per content So trajectory we see way,

all. the Sum XX, Slide So

the in wheel position space. exciting Our

are ways. in We unmatched many

Europe are look if North #X market, as we a standpoint. the America So from a unmatched market at you combined and

other from imports import. China relies on Mexico low-cost carmakers, diversity, or in footprint, look U.S. at customer carmakers we in North are America. manufacturing Japanese top X supplier am a the I As in comfortable saying to German This car From Poland. have, heavily in that makers, you can we Spain especially industry and supplier XXX% footprint offer manufacturing XXX% and and in the no Germany, wheel

technology. have We unmatched very at the our and most industry. broadest much comprehensive are library, advantaged. And the finally, we you When in look portfolio

finishes is larger expenditures team and north what EBITA generation that best portfolio years. demanded I'm carmakers Growth new that premium million will and day and a deliver Most the business approach by free 'XX. into well XXXX, strong disciplined our Superior in As XX, market U.S. it light-weighting flow day and our by wheels cash to a along unlevered to in in what expect importantly, over and operating I the the call with further America is out, capital will leverage. North coming beginning of tell aerodynamics in through results behind we This to our $XXX European executed drive the going growing driven you by with showed. Slide

turn So on to our Tim now the details call over provide financial more will to Tim? results. I

Majdi. Thank you,

And August the facility $XX of European balance results of Let's SPG facility, deconsolidation creative our principles from and devised of commencement with operations of and year-end. very beginning begin little XXXX. event are X Polish from XXXX sales. of functions update for planned. last for we protective an engineering adjusted XXXX logistics charge EBITDA. the the the our to months the action on and unit are at the in and The $XX very million, of results administration on months had the deconsolidation as sales sales SPG accounting of $XX require administrative the respectively, a of of operations valuable XXX,XXX noncash transformation million from are Superior is support value-added results. The million wheels XX. Accordingly, of of to longer on balance proceedings X the the wheels German an on last shield reorganization manufacturing than is accepted strategic the year, Superior's sheet associated the the from of SPG is at and a company's functions, sales, deconsolidation staying SPG Generally had transfer European excluded income Notwithstanding impact financial excluded the Page the produced and This excluded aftermarket R&D, statement in SPG, with sheet net commercial financial and the at company. SPG approximately XX.

expect reduction change transfer the of We $XX million. in on completion annual expenditures reset a EBITDA of on approximately to of of $XX adjusted an and wheels $XX capital million million annual the

margin Importantly, expect we and from in our is transfer $XX to to with to wheels the in that to $XX vertical SPG the million. North of million operations XX%. The America, to line of contribution Europe of be improve expected cost XX% Polish

for Page million XX. investment. the and We compared The sales fourth year the on to prior financial quarter to million on summary $XXX quarter, decreased XXXX are year. very payback $XXX is Net in pleased full with this the

sales to the million compared million the decreased the $XX to prior $X.X of to million for $XXX adjusted compared income year. decreased full in to the net year, to full per prior to million of compared billion million in year on $XXX prior year, year $X.X billion EBITDA quarter for million reported quarter, the was or compared net the to the Value-added For in of the $XXX the to million charges compared diluted to prior sales fourth we diluted loss million $XXX million for were year, quarter. Adjusted year. of sales loss net period. And a follow income in $XX per quarter in the $X.XX $XX year. net were momentarily. And $XXX in $X in prior EBITDA the million $X.XX full $XXX value-added million contributed share loss the restructuring the of the performance financial compared for XXXX. Color In to period. or share $X

is period through of of $XXX per value-added for million in the to the the million charges net customers fourth of costs in sales. far quarter therefore, XXXX lower to Page XX. $X.XX because a For pass-through or million decreased $XX right, and aluminum $XX $X.XX year favorable the and $XX of in and inefficiencies primarily mix million the UAW lower full year Aluminum impact year Adjusted XX. the sales fourth million overview margin deconsolidation SPG a of XXXX bank. the and XX.X% to of value-added entity. free sales $X quarter XXXX prices $XX To also full from year unlevered euro million impacting adjusted year to from of expressed period. The a inflation million for full year-over-year by flow year year-over-year share price left, unit Because decline full XXXX a was compared quarter XXXX, on of bridge primarily the set customers decline our stronger contributed last lower transformation fourth year-over-year and unit more EBITDA to EBITDA UAW on million, customers, in compared deconsolidation. financial million. of $XX $X aluminum $XXX loss the per the million EBITDA the the same million strikes $XX to compared net year-over-year is in $XXX price $XXX volume, to million results. More quarter with period. adjusted of the fourth of prior inflation recovery very Lower income is is XX. half the XXXX. minus to sales recovery results customers manufacturing significantly offset $XX recovery Adjusted deconsolidation, $XX XXXX is XX.X% various sales net euro of a specifically, performance loss-making the we the and in associated loss million Page manufacturing was and of aluminum In to Lower was XXXX. million costs the SPG million due amounts lower SPG million, favorable million lower with primary to earnings on full significant to million passed of cost XXXX in from inefficiencies customers. and said prior fourth margin. the by bridge quarter mix XXXX. Also loss the of costs very bridge. is $X is million $XX result the $XX year-over-year business for And in in quarter OEM and inflation share can passed million a the That's $XX various value-added million results, in from is prior to exchange on product million XXXX the favorable full decreased of amounts To year. associated reason, EBITDA inflation for million the $XX of reported benefits sales to charge a other transformation year, Page financial The quarter quarter Page recoveries fourth $XXX and percent impacted sales $X to unit the million year XXXX from $XX minus XXXX cost of of EBITDA all far benefited minus million, unit primarily the prior diluted The and to compared than to inflation mix decreased XXXX restructuring the sales SPG mix results. An year. The because to partially through of Volume, aluminum of sales The arising value-added the value-added of other $XX adjusted Lower the recovery than Stronger and compared the fourth the year to resulted and $XX lower of year prices. On minus offset back deconsolidation noncash fourth the prior decline cost $XXX foreign The in recoveries to results million, of as be financial the in XX. The and for customers XXXX SPG deconsolidation quarter product million. cash as more amounts Page the $X sales the year customers Performance diluted bridge of from cost strikes. period. to of facility, year sales of European the decreased of business $XXX company's European quarter the result inflation and and the and of XX.

activities, service We are cash million And various financing because year, the $XX profitability and prior metric, $XX full shareholders. Cash Cash year of million free initiatives million down less cash cash and flat million lower restructuring amount from the year, fourth introduced because higher fourth activities million is by provided to operating business. non-debt prior of $XX to for the flow the were for year, the capital compared expenditures in is costs. period. compared year. Free to to flow prior amounting timing quarter, of million was prior to intensity to million used the flow for the the due cash in and native $XX to reduce cash-generating enterprise of Net $X the period. $XX payments the capital flow activities of million the unlevered $X $XX of $XX compared available by the free quarter activities notes. operating quarter $XX senior cash cash investing fourth the the million and was of provided full unsecured in compared full for the readvancing was for payments quarter for of therefore, for the million dividend year flat flow of our less, power the It cash Unlevered interest year debt paid. plus cash lower both and the up

was prior was million flow million cash $XX quarter free year. to For Unlevered flow compared cash the compared in fourth the the period. year, year free $XX million $X $XX prior the in full to million in

transformation leveraged working compared in Europe our million was free Not transformation. cash cash the to Page full temporary the flow unlevered million in flow For resulted in year. On increase for $XX unexpectedly, year, prior a adjusted capital. XX, free $XXX the

invested at As of proceedings the the and $XX with million in end XXXX, experienced from protect trade million had supplier SPG. $XX stock to company clients. invested in SPG We customers million $X associated shield supplier certain in our terms disruption of contraction safety production protective possible

$X unlevered same found and invested liquidity on facility, was the $XXX $XXX also year-end and tooling year-end as closure $XXX capital capital XX, $XXX Page year-end adjusted for year, free Page million the million credit million, XX. the adjusted cash in be XXXX, debt XX, of at of transformation. net company's of Cash on flow XXXX. An We availability $XXX the balance At may about XXXX million was in debt the XXXX transformation million. On structure for was generation revolving flow, Europe of sheet end Funded the million. costs. including net million. the of at free equipment and $X in overview as cash the unlevered incurred year was December debt

proceedings company has transformation the cost disruption, every to us, X as COVID, XXXX. years. Notwithstanding $XX $XX stock for the We strikes million $XXX that believe year normalize as behind safety come inflation, debt supply in supplier stock is net $XX expect industries. depleted. deleveraging note, Also is free year-end the net rise of the that's and enjoyed chain million adjusted year-end pre of the protective the we less investment XXXX generation to balance past SPG Accordingly, cash There's the flow over of at million. put to towards and, terms temporary million, the sheet debt proceedings therefore, will UAW back this levels, reason than shield year

the compliance credit XXXX, facility notes The all financial and independent are ongoing unsecured quarter loan revolving in Superior's June advise we was end, It to is notes. likely mature discuss will refinancing structure debt with an The our capital is as this might senior early adviser, profile XX, on process are the at of on on in of in financial capital has In The too Page evaluating involve we preferred to company in Page the XXXX. the XX. deliver. The Refinancing full opportunities outlook covenants. the engaged markets. process year December XX. maturity notes adviser with refinancing conjunction the XXXX is equity.

full in of XXXX, the we impact sales $X.XX For the markets the range $X.X and of of year having our consistent expect net portfolio, optimizing addressed utilization value-added manufacturing billion light production of $XXX underperforming in with forecast. million. the sales real sales IHS generally in capacity parts $XXX in to reflect range also vehicle of to thereby million probable our the The billion

EBITDA adjusted $XXX anticipate million. million We labor to expect that We of especially $XXX will cost persist. inflation, energy

fair share have price, their with wheel recover customers we inflation. negotiations of to ongoing in OEM However,

$XXX highlighting free cash on deliver expect unlevered $XXX the million, range in We cash enterprise. flow generating the of the to of million power

Finally, we effective XXXX. approximately in rate in we a as tax XX% particular, expenditures our light weighting finishing invest in We strategically and $XX XX% business, capital million expect for capabilities. modeled and

effect other and the XX, reorganization which manufacturing logistics European SPG of expect from wheel wheels adjusted transformation very Poland to of Poland for the be the the XXXX early recover complete, reorganization transformation. difficult, is the year certain million. and very of administration by is business year we the to Because the fully we functions to expected European we accretive of wheels significantly value early in in Furthermore, and XXXX. On the EBITDA of Poland, production performance from that XXXX full costs aftermarket the to with approximates expected functions when the wheels administrative at the Page That the facilities the XXXX that support company. of also Post XXXX not and is is European led impacted is to the other energy end labor XXXX, lower in benefit the of financial part of as intend to to the Poland guidance SPG the adjusted administrative part Now million. the again, associated of completion of inflation, Once of in of aftermarket wind quarter amount sales, of transfer customers. with full $X the $XX making our the cost reorganization European approximates and outlook. to reflected and transfer first The up be transfer

Europe also to that XX cost performance We expressed of of a expect expected company's as to Polish important of and million. Considering the installed product Recall generating approximately North percent XXXX absorption the amounts improving over capacity. we Accordingly, XX% margin sales. exit an fixed America. which of with in approximately the value-added Superior manufacturing is facilities, sales expect current just on $XXX approximately that adjusted benefit mix, $XX Superior in million. wheels has business a approaching the XX% million manufacturing of European million transformation $X the contribution variable to and EBITDA unit of

manufacturing, Europe, value our improved to the look providing we in all full customers and we result our teams This in commercial to take should transformation and Majdi engineering are attention questions. develop to their to through concludes As forward happy margin and for contain said, variable I remarks. our up shareholders. ramping business the the Europe book Allan? prepared contribution earnings of Superior. With of improved

from Instructions] line the Our first Capital. question of Michael [Operator Freedom Ward, comes

you what X parts. I tell the -- and have SPG with there's the can restructuring, European From

that be And closure XXXX. of transition have more going the cost you like the Is those some and they're of -- half little sounds severe a transition. You the in costs then the of the have to it to are right first read? going

Tim, Michael, correct. that? want do is on That to comment you

Yes.

bit expect is You're that other support or administrative less the respect What the reorganization right. with and business. is the do functions little aftermarket to a of happening --

folks more Poland in to until the than process in because months, so in X cannot period time, be the a short obliged we broader ourselves few organize Germany, we will we we Germany personnel As Poland. run have basically at place of release for folks in a sets

of -- the that's a first correct. half So year burden that little the

When of This right? a we've it's other euro, cost. you elements. that administrative is has just the couple Michael, multifaceted, the think it transformation about manufacturing, but points. the It's of is other the of aftermarket business, communicated backbone

are are that first a place in be will few half. most bit of the us over that So will and quarter, quite a of in taking the quite behind there in be first it transitions

unmatched will point and any and for one. But you've this about. two, transformational it, enable grow and that's Tim this us So number say to me number talked I capacity use absolutely think is by create company. will capabilities point this that heard It

little million a XX XX%. this capacity. XX%. is The of have leverage on XX% business to We bit operating north wheel We're

thing a So this. I undertaking very customers coming we will us to in are our Michael. had right, is but what we tell good to It way. for many our undertook you -- of way, reasons, I this helping And very, massive the because also customers. of together do by was care take it's a

that were I say So in they would process. helpful very

comments operating I half in think, mentioned, your Majdi, costs Germany? about in that in level the the you were And Poland

Absolutely. Yes. correct. That's Say [indiscernible] on that one.

that you bulk fourth performance negative in you customer quarter. is $XX cost, Tim, million $XX how $XX On from that And were million is? think Page is mentioned in $XX million the your the about that million recoveries, I XX, the that talked comments, is of the

back you just to ago, green disadvantaged. out a you extraordinary instead we look the slide themselves lumpy. of XXXX way and block, year and And mention manifest or as see -- any my ago, 'XX called out 'XX We're of go I were a term, we fourth quarter use But red to the at specifically didn't compared it's here, recoveries. a big called in this year they the so customer Yes. block exact quarter-to-quarter, okay? I the recoveries, if a

Okay.

So it's the bulk.

bulk disparity The Yes. in this the is of customer recoveries quarter. the in

So ends year last X that. extraordinary. book absolutely just QX Michael, on was

When has say we it were Our of outside recoveries announced margins last growth year, QX that XXXX. we did from XX%.

in this dialogues to the factor level these good the customer extraordinary. It in quarter 'XX. about this, that 'XX. They've piece quarter us. So point, recoveries one you'll the of why lumpy, that's of customers customer So of very, have been fourth is right? Listen, and in be is the cooperated Michael, recoveries another to recoveries transfer other was this our right? fourth see But tend of very

the okay? sides of on book really it's end, So both

lumpiness It and also transition in the the comes of then the stock. second from of and 'XX the cash the supplier some of half the things other and those costs and way sorts sounds recoveries between the like that Okay. back SPG transition with also

when it So like your sounds gap is you...

go off, ahead. finish Sorry,

lumpiness that sounds it. was second in that I turns -- of lot No, a was half. positive just the it like

the is That conclusion, Michael. correct

Okay.

lastly, your with guidance. Just

but with going You of of guidance you your next mentioned capacity about million, talked $XX million. $XX out the couple years,

we saying unit flat earnings in the that or flat from through? can basically what an Is environment. you're perform we right think read standpoint here's So environment industry a

I think he's build wondering a vehicle a lot flat in light [indiscernible].

Is that your guidance to say.

for the is think longer performance about? guidance are term, you the 'XX had I talking you what

you very is conclusion and to in mix, on is we're Obviously, earnings That but and tied the there's Michael, is puts Europe. this and seeing just transformation the correct much uplift margin correct. takes

Right.

transformation that the North more the levels revenue talking upside additional upside provides benefits or you're on and the a Europe we if volume about So return from Europe, the earnings. in in and to America, get getting you're normalized

That's correct.

next Barrington from comes Our Gary of the question Prestopino, Research. line

of questions number A here.

and that for everything can you QX, this. running until or in on In X might I transferred think First of tandem this have my touched QX all, Germany. shut transformation into QX, Poland and even correct? are understanding, actually factories you get Is and basically QX, you QX to just down in

Yes, correct. Gary, that's

Okay.

lot we saw to of to due wheel for So saying that was somewhat Content And maybe number lower down recovery that's Is factories though, trying customers. running ask, your QX. factoring that accounts wanted thing I just you're cost to primarily in what the inflation so tandem? understand decline I'm from in, dramatically. there for dramatically, the One of going on in X XX%. obviously, that is to per here inefficiencies that a

So the if -- and coming SPG in very low fourth other onion that you just wheel comparison X%. quarter Gary, peel per lift of on make it's the for, by a average right? in the has don't XXXX, a you in and okay, adjusted year, Germany With Once UAW and we Content up wheel the with from the the strike. GM it's -- you Content deconsolidation that's revenues very gone have adjustments per in for the made such. year-on-year we the you FX had Actually, and

Content wheel, of the as it but not at it's Our for X%. per we year, what impressive have as we is terms in looked

of asking cost many has industry The recoveries a sales. over look then way and value-added this as for were you time pricing last over has the recovery longer is and period in cetera. X et inflation by inflation deal recoveries, ways, it had occurred books I'm test in at that including book is it is the one-off such the suggesting years, reason through gets our that in of this bookkeeping The the

the at content it longer Did definition, So better So recoveries that? it period you of pricing okay? per look can time. if wheel, you at which of you our includes by it's looking follow whipsaw, a quarter-to-quarter, and sort over

[indiscernible] No.

figured Gary, I think about talking XX%. you're the I for just the quarter. the fourth talking year, I whole was out

transformation. that's at. industry have more mean, think out would of realize with maybe I what cause the there's right? Or of it's doing a a decline. happen? And ton the the what Yes, is there Right. should I I I And just in guess changed has on latter, that going I to of with rather that getting you're the function that that anything question. a noise what's there. Is I'm phrased dramatic that's

trend, you at by at noise more at fourth is the metric about don't content the the per content quarter. I last fourth per wheel the much at I you It's looking to We that like so at can quarter assure of we're latter, wheel look the absolutely. cautious is but always for looking quarter. mean look

assume numbers kind using markets? correct, for to or IHS to for lead IHS least XXXX. your at of Okay. numbers would And that guidance your Is you then you're I

Listen, are more optimistic. just we we that's cases, be several in what Gary, use. Yes. IHS sometimes tends to

we adjustments. customers So make generally, baseline. some of But and our take knowledge we the

that was and remember a reported industry surprise recovery was all was at lot XXXX, you it going guys the be to did, were sanguine. of you to recover, in of kind but little hope going bit beginning a So fleet. the last a when of We you year QX don't fleet said the you I basically which participate in

you cars So are fleet? terms as you're passenger you anticipate consumer what XXXX, do -- looking anticipating of shifting more at that versus to production in of

Absolutely.

GM me year. 'XX, in was Then if customer. you And big you lower deal let gears down the us. if fourth plant of of And last down for GM lower quarter, then And them right? year, got with IHS whole at just -- a for They start the spot. other were every you we the were look done me especially, the on the all at us, well. So was the as that GM content largest week okay? let data, a have X%. look lot business remember, the aftermarket And for

at if our the and the always price go you mentioned, very the nice that our not in a side. third And entire expect fleet noise lumpiness see our the forget okay? top there into us fourth aftermarket Tim as the America just as and So look Don't in North mobilization way. is on the you is actually with to quarter we in rebalancing aftermarket the line, normalization segment, customers, recoveries, 'XX, is

Right, right.

America are sales in units value-added it of and kind market on aggregate produced from. I CAGR. picture can of X.X% there look -- time understand environment give growth be, a where your Europe. think where up in on you of in that's at you units numbers coming fine. then factoring -- that you're just to when period terms And at XX, a looking as What you produced long-term then you over Page we want So between which you're North

No, -- the through outlook. of from. what overlay where again, is there we is won, we that the within content we we use of businesses underlying coming And won, mix IHS. Gary, that, And 'XX the the

at look if marginal we've content. said it's And growth, growth X when always above in you the for to So on you XX% -- industry. the IHS, onion from peel growth years next market the relatively X% it's

quarters market. And XX quarters, just the ones look XX last XX, other of at you quarters -- really of our grew XX over were If the noise. we

Thanks visibility So our programs comfortable IHS X.X% to say, and balance content we're next very the have is won. really on let's X The years, to narrative. for we look X%. at X you IHS, the growth with from content we

so slides with to trying the just I'm through and flip lastly, then And Okay. here, bear me.

Europe. EBITDA to XXXX? follow-up I a QX quarter another like about XXXX. with on you're you're EBITDA can of of talking How associated par QX. then us mean in be Would number into taken you're as challenging terms in how thinking? for million you or you with And of that give for costs what think And gave the of higher? in of QX $XX doing of to much that, an idea a just little expect $XX bit to much lower you I remains million what a was that

and reference loss I of charges in in question the -- million think the prepared of moment, because associated looking number year. into $XX made me million one was first your my my to please. restructuring $XX total respect with the comments, being restructuring to the Gary, comments rest with 'XX, you with how of was at back we of is much that the just notes, as of and can my okay? first of with XXXX. Bear associated a associated charges -- half can it There in And the

Okay.

think line important where that we that in expectations it given very helps. So of quarterly in think be you again, could you would you guidance, it's pretty then -- don't the And here all the terms be, know noise give with in set I but the I numbers. --

down. should fair we that? to say we would give up, slightly of slightly frame flat you idea how just that it is maybe an So Can EBITDA, sequential see us

customers. it? I'm because of with transformation the you of first it's we're the going undertaking year and Europe on I negotiations business. financial that fluid, very of because with to going an very the for results give -- the also of Yes. okay, What mean going the fluid be to all completing the Our additional very are that's do half in It's cost by idea. the

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sort the fluid. don't to what give because that it number is I because somewhat the way know not not sequentially exact fourth was but being number it's I so of the second in so. prepared I I'm But an dramatically and higher modeled quarter all is the you So see first quarter, than quarter it

Our Deutsche [indiscernible] from Bank. next question comes the from of line Mohammad

Can you hear me well?

Yes.

Just relocation on to the Poland.

-- delay? that? there a for in for you is risk legal you QX, impact completion guys, there looking a As could you are for negatively risk are for potentially guys which any consequence is Or any

customers in our us. But right? with tell risk, you a are I would always There's that

on that already been a to well. have of Poland. that very, has team product very has Most executed relocated We this

at. has We we're where Our on legal feel team [indiscernible], there but it. is been about risk, it's minimal. good

clear. very That's Okay.

Is to first year? not what because place? comment Can mentioning the are -- more part on of starting we the timing a basically and Just to mentioning know stay Or you in the you also more in that ramp-up process was in process be refinancing? the guys of of some it -- and are there coming are second towards us the Can there that plans is preferred HX potential the expect refinancing loan. are color in we equity early you but that mentioning of That's the the going you can term the half I the and the give the you the a on QX term notes, a expected there? question, loan in, 'XX. assume

determined the yet. company's is structure of the be final this of out to struck capital coming comment So process,

credit we with The months to place early now, revolving unsecured words, exploring the facility used it in within we to We markets. facility contemplated do we are term adviser, put financial in a we so the the XX fairly process with was the facility use the notes term along to -- ago dura. extent other called certain term pre-wired. In was it loan senior of that could ranges. the capital The refinancing internally, the so, extent the practical do our

go the the X banks So ] place and address of J.P. [indiscernible]. the limits Bank lenders, within and Bank company allow up for [ Deutsche rest additional to Ultree its to Morgan, the America certain of and debt

change. undertaking that So the That doesn't we contemplated to it doesn't it term It this loan that would so mean necessarily have change. exercise. may But wired won't that has pretty change. be it been

this complete. be when of terms In exercise might

process. more We're we way. necessity, see the not I a this TPG, in but in process, of likely one necessarily early the will will, and the changes I on shall equity there preferred in think, our It's change securities. the As we capital improving are be they to incorporated said, or markets --

that, all said not notes prefer will timely, be exercise. Having this senior of intention company's part to secured address that the would current. is So go a we much the they of that very

refinancing attempt before is notes the current. this to complete go our So

Okay. That's very clear.

guidance EBITDA or already you've and want challenges strikes have what any On from discussions upside to for inefficiencies? due and the given to have there the you as the an ask to I expecting any guided also strikes, unwinding OEMs And inefficiencies the seen what well you ongoing UAW is given is, with potential the and the already XXXX.

the North Mohammad. We down I first if if be about mean, down very you carmakers, our you would And for IHS the whole at from probably I IHS entire market in first know to question, they're we going the look standpoint. quarter, what X%. Europe year, good growth to you America. is a numbers, a look It's the half, even Listen, be think at choppy with it's and tell the see X% going year,

we're market, that is peel market again, right? The incorporating our seeing And you onion flat. guide. are our on the our of guide, in if We growth

Mohammad, in all it's it's all So there. their in

last working capital. my And on the Okay. question

have. guidance market given But the volumes levels in at you already You've adjustments you are for the there. given some some flattish that expect 'XX. Would inventory best

we from So expect there? maybe inflow can some

company very nice Yes. couple in has last really a We especially of do years. in managing very its in difficult job the done environment the working capital this

It's what as investment less a sales. operating year. the end payables, in receivables we at been to look if of capital percent X% fairly to our of inventory refer is X% working net flat, expressed at So you the approximately as plus

in trend we protective come terms back to expect Europe benefit number our We to improvement this. we proceedings of the once deplete That's from behind are safety also, terms supplier two, in 'XX we that put us. we the as these one. Number And will of continue. the some do expect some in stock, sort shield expect that

we 'XX where $XX Now having very, million very, the guiding we said 'XX, are managed effectively 'XX. that, if $XX you're to sort going in of expenditures. were compare very million to capital 'XX, They in

guess of in the sales some during they So also the the which recovery additional terms. up consume off sheet. of of consume go some to will, capital that of And extent I will delta in balance that stock will the that the working volume presumed the the year, recovery recovery

more we capital -- and in of little pocket on don't spend that need we a a 'XX. put So more we more if spending, all to do business bit into

I you now conference. to Majdi, so There no host, today's are hand to back your conclude will questions, further

excited. challenging for very we call. tackled Listen, but are everyone, XXXX, a we joining Thanks, have today's absolutely

We And and team thank I for have their unlike history. company to to Superior work like win, any and the compete for that, our our positioned period in would efforts. hard

great Just us at where day. Have today. to bringing a we're fantastic team and a

Thank you call. for today's joining

now disconnect. You may