Barnes (B) 27 Oct 232023 Q3 Earnings call transcript

Hello, and welcome to the Barnes Third Quarter 2023 Earnings Conference Call and webcast. [Operator Instructions]

I will now turn the conference over to Bill Pitts, Vice President of Investor Relations. Please go ahead.

Thank you, [ JL ]. you call. us thank quarter our and earnings XXXX morning, for for joining third Good are President Chief me Senior Streich. With Barnes Vice Hook; Officer, President, and Thomas Finance and Financial Julie and Officer, Chief Executive

you O-N-E-B-A-R-N-E-S.com. release, can section press of If our corporate website Investor on you not copy find received of have at earnings the our it Relations a onebarnes.com, that's

which website. be call, to the slides, we supplement our on will referring are our posted During release also earnings

measures financial have which additional discussion the today non-GAAP Our to with measures certain believe we These related accordance helpful been provide is regulations. in includes information to SEC GAAP investors. measures reconciled

You press Securities Exchange on table release Commission. and of and will in X-K a our the part the reconciliation to our website find Form as submitted

make Private call forward-looking from statements Act Litigation during cause materially question-and-answer Be those both opening during uncertainties that differ the certain be of projected. actual session, These to remarks statements may may results advised in Securities that on to defined today's are and subject the forward-looking risks Reform and XXXX. as we statements the

periodic Please filings with corporate and consider are our that on the call onebarnes.com. section at the website and the in described SEC. uncertainties today's These Investor through are are our available mentioned Relations risks filings of

XXXX of updated will then me Tom? review now our Let the turn After of and the call Tom open for provide up a Julie details questions. financial call opening remarks, that, to his for over our we'll performance outlook.

we several a in morning, and intensive Bill, was made strategic third progress which good you, significant Thank towards particularly objectives. It quarter everyone.

scale value-driven business Barnes execution to through priorities our and industrial. We have execution, optimize to of business drive moved more strategic a balanced, core aerospace aggressively

high, to demonstrated Aerospace been addressed, we the been is it's is while right unfortunately Across path pleased slower-than-desired overhead progress success our pace. date convincingly. has with a methodically it in asymmetric. are has the remained and areas, organization, it stubbornly several While being on

manufacturing While not generally is aerospace facilities. strong, struggling two performance is it perfect given

to changes needed to well more place. the portfolio proven foundational than additional in of to has rationalize complete, originally remains our be work challenging are quarter. considerable Industrial third elements much in have commenced There integrate, initiatives and portion that underway, painstakingly leveraging consolidate anticipated. we the including Structural put

However, progress not will be linear.

strategy to forward. major took business grow and aerospace our leap Our enhance a

a Aerospace Aerospace a major we largest referenced company's more have for During Barnes. step start the successfully to establishing quarter, when the We're the team balanced and earlier expected. history. our integrating effective the company's we welcome and MB acquisition. MB deliver to to the We acquisition to traction portfolio announced established is and MB in acquisition It overall a the debt celebrate and synergies recapitalized completed Aerospace the we of fast off than Barnes

to ensure deals is With X performance, quarter, identified future approach The synergies a of and last success. our and emphasis acquisition our standard on apparent on inefficiently we significant all in already the progressing operating This to engaging from set day fronts. the X is respect integration practices. the The weighing driving integration are and will from are on results. for pace how benefits aerospace teams previous shift facilities

head the location the into as turn of to One corner starting quarter. we facilities an OEM the fourth is

requires to challenges. additional activities bookings. in face The other, a this commercial build fix that an aftermarket The facility facility a generates robust pipeline ramp ultimate for continues to

capacity aerospace to with grow ability These bring progress aerospace to previously investments increase these of our are to our transformation Continued as announced move and corrective markets implemented are steady actions to facilities being we performance end The levels touching into investments next across higher and capabilities. year. all making secure customers. products

we and that solid, quarter positioned believe are fourth into forecast well we looks XXXX. heading Our

we addition, X extended recently Safran. In with agreements long-term announced

engine for components the for is and agreement CFM and LEAP and Barnes of the complex-engine first Aerospace overhaul reflecting assembly expertise programs, of The components. repair in machining

extended will over the agreement, CFMXX represent secure component we in In we beneficial future $XX these the program mutually which agreement, repair this Combined, expect over million a long second to revenues. term.

participated commercial and with to engineering opportunities that these identify remarks more sharing one details appropriate our expanded my business forward close in capabilities previously. opportunities. To teams look engaged not packages with we time. have developments of in new the We recognized combined now promising more new you to our our work have and on commercial is the already larger Aerospace, with Customers at

At execution our includes leadership, for go-to-market driving core motion and within May capacity began continued for restructuring involvement cost These rationalization overhead, mandate in the My and operations changes. strategies strong to solutions within very manufacturing a improved business and leadership actively efforts Solutions. This is Industrial, which is industrial changes control which made Molding in direct unacceptable, strategic, is operational appreciation commercial capability. first-hand streamline excessive of and providing and need ongoing being strengthen are change.

expected rationalized generally results. consolidated delivering integrated are Our products

these However, China inflation and materials. labor continued pressures due we in of ongoing and leakage benefits to markets are seeing weak of the

and have Control the includes the Bristol, in our We of facility associated progress made with optimization Molding plant on manufacturing closure Solutions. of plants our Solutions closure manufacturing Motion in Connecticut. products spring This

shut global accelerating centers and a business back-office business products organization. commercial more the aggressively service the effectiveness new automation leadership Additionally, included market technical of footprint, and sell have bringing comprehensively and to and At in with the down. integrating and to business we product optimizing and restructuring analysis. also been and integrate our streamlining services capabilities These changes technology Solutions, streamline some underperforming to services processes systems our Molding our efficiency globally, our objectives smaller and implemented manufacturing our

Solutions an also reduced Molding complexity and These at overhead restructuring above. leadership with and the charge include and additional additional of across leadership During significantly expense. implemented the the business, we several accomplish changes. to reducing quarter, team reductions took changes coincide the We size the

Solutions automation share appointed X to has Marcello pleased week, this Solutions. we into the past also will additional Molding for our This an of the internal an business President who instrumental X. who the growth now Orlando, business, over am new earlier is that multi-cavity will full-time effective of transition to promotion. a transformation Emanuele move business. created role reinvigorating President the Molding I opportunity move November led years in Vendemiati, for lead automation

the manufactures Auto component Solutions Control is United feeling effects ongoing Motion strike. which the Workers of Our auto business parts

were While we and delays quarter expect fourth the third lagging impacts the in shipment quarter. isolated, orders

fourth million and impact $X-plus revenue is $X.X-plus impact quarter. million estimate preliminary a profit in in Our the

may require additional or duration the there our automotive a furloughs strike gas the continues, the products [ of additional impacts. ] to to layoffs is of mitigate of unpredictability contagion also the and broader hot However, stoppage product If nitrogen runner lines. work risk

large lowering At commercial headwind despite this volume year-over-year The in partner our to Automation, strategies. we speaks major significantly year continue 'XX. growth the to a distribution growth refreshed anticipate full offsetting of effectiveness

product channel. partner also The is We vacuum their and course in are distribution our projecting lines also trends. demand with a closely distributor correct to is adding to working our recovery sales line core XXXX product

major industry the business of execution, our industrial. fourth dynamics, our through eroded optimize Barnes has industrial, aerospace we a moving quarter, strategically businesses. the in drive balanced our aerospace priorities all been quarter. core Overall, MB Significant announced is actions being structural with more to to however, to across industrial strategic Progress reduce to are closing, business capabilities. adding addition and we commercial planned as progress execution on in Aerospace enhance in scale And In previously inflationary softening aggressively are implemented made to pressure. as restructuring value-driven the costs and of towards look demand our and outlook continues changes business

moving underway progress specific and remains pace desired targeted commitment the strong. at is our achieving are not the yet, very industrial industrial While to turnaround actions

for over a well now performance me third market of some discussion quarter pass as the as Let our call color. Julie end to

Good morning, thank and Tom. you, everyone,

Let our me Slide begin highlights supplement. third on quarter with of our X of results

organic exchange basis XX% Adjusted and XXX X% was adding period, were increasing margin as this the X%, points. million a of down same income sales the X%. prior up XX.X% adjusted year operating acquisition operating quarter which $XXX Third from contributing is year foreign million year, was and revenues with $XX sales ago

ago. $X.XX Net compared share adjusted $X.XX net an was $X.XX of net adjustments. net from or XXXX and income million $X.XX charges Adjusted $XX.X quarter per per basis, $X.XX short-term $XX down or of per Aerospace diluted a of and ago. per of excludes income accounting On charges, acquisition share third to transformation-related year loss MB million a of $X.XX year in $X.XX negative of purchase income share diluted acquisition-related the restructuring share was

our was ago. of recapitalized Aerospace B. the a billion and higher versus $X.X interest discuss the the suffice but interest quarter fresh debt driver $XX.X higher Third structure loan increase average that average it At balance and a say million and of with term rate increase million contributed The closing, year I'll to in new interest leverage key expense the new a million the acquisition. revolver a $XXX time a Barnes we $X debt quarter in expense. to was MB momentarily,

anticipation interest expense fees our financing adjusted excluded of incurred were and as acquisition-related million onetime included addition, of acquisition, In charges. which in $X.X earnings bridge in are from the

was The for rate by versus nonoperating in third primarily expense XX% approximately tax $XXX,XXX other of the XXXX. driven of year to and XXXX $X.X the a the in XX% full negative compared XX% year-ago was income million quarter Other year income. ago, pension effective period

due the third the impairment transaction tax is expense, change unusual that deductible deductions. earnings. a is and driven this quarter which on a executive compensation effects for by of of The associated unusually with the rate nondeductibility primarily Aerospace rate in are our goodwill capitalized year tax The the is limitations portion high in to of interest forecasted and tax, costs MB tax geographic not from acquisition XXXX charge, mix the

increased performance, Aerospace. XX% sales beginning MB Aerospace an Now Aerospace, to organic the while XX%. quarter At were up I'll the acquisition in from million, our sales year with turn increased a On basis, ago. by $XXX XX% sales segment

organic increased Operating $XX.X XX%, X%. increased million a million sales OEM organic ago. profit $X.X year sales versus was and aftermarket

Excluding short-term from million adjusted of of $X was of acquisition up $XX.X ago. operating transaction of XX% $X.X $X.X restructuring and transformation-related costs profit million, year and million, accounting a purchase charges million adjustments

Aerospace Adjusted year. margins and a of inclusive contribution pricing both by prior of be MB will points the by Aerospace operating XX%, of in amortization higher basis operating sales Keep productivity. profit mind acquisition. was margin the operating from volumes, sales impacted adjustments of contribution that offset from short-term organic accounting the intangible Adjusted and purchase from benefited MB XXX partially decrease long-term

in are a margins. was the quarter, not. This on is accounting amortization long-term the impacts have Legacy in While XX% purchase reported were excluded OEM will orders intangible impact results, book-to-bill the and short-term up X.Xx. adjusted meaningful

With the to billion, convert XX the OEM Barnes backlog now this and Aerospace at revenue MB stands approximately business, next expect months. half over to our combined we backlog $X.XX and of

outlook growth low sales is growth sales organic Aerospace teens is the up consistent is full XXXX double outlook. July parts. which to in for high and organic Our spare digits high for expected our MRO be teens, OEM, teens year Collectively, for with high

part Aerospace Our adjusted amortization, operating approximately in in two entity recovery ongoing mix intangible by long-term aftermarket forecast OEM is facilities. our for margin of the and combined the XX.X%, of process driven

a million million, quarter was $X.X period. year X%, foreign a sales At favorable ago. versus while Industrial's $X.X slightly exchange up prior positive Organic $XXX were the X%. approximately Industrial, profit million third decreased sales was year operating from

Excluding million, points. adjusted X.X% transformation-related operating profit down $X.X million margin of down and restructuring was was XX%, and of basis $XX.X adjusted XXX operating of charges

have place unfavorable to Adjusted organic respect volumes, positive by while X%, decreased sales organic persist. decreased was for quarters and for several operating by across pricing. orders mix impacted productivity, in organic the Trends Molding profit that X%. Solutions offset quarter sales With partially and lower industrial, sales orders lower been

product Our multi-cavity weakness by excuse primarily hot -- markets. delivered delivered were automotive growth by mold and in me orders runner serving line packaging These systems driven our offset organic end and sales -- care. personal

Control decreased be in to approximately both by now sales Solutions, For At Solutions and X% Motion quarter. expect XXXX, flat. Molding sales organic we the orders organic

As Components has and orders the been by we transportation-related sales Engineered driven end trend, markets our legacy good business. saw in

in metal mentioned, stoppage. UAW XXXX. especially as to China. expect in negative forecast However, remain MCS ongoing flat We Sheet soft, in markets now we sales growth end quarter organic the fourth turn that Tom work stubbornly with forming the for

At sales Automation, down approximately were XX%, were orders flat. organic while organic

bit We expect sales for automation organic prior XXXX, mid-single-digit view. our growth in lower a than

operating adjusted XXXX For sales we the approximately flat Industrial segment, X.X%. with organic margin growth anticipate of for

cash, EPS to of -- from last on quarter the I'd third year year quarter to our on the to Slide like to third our adjusted Before take moving walk current quarter to a of moment supplement. the X

lot drivers As mentioned, and I a pieces are of to quarter, moving EPS. there adjusted in want the of isolate performance

In million year-over-year million decline from compensation to drivers becomes MB that compared in be working looking respect it the tax $XX in the The the EPS. year. majority graph, impacts interest lower performance, of paid and activities With what a to by primary continue versus in in year-to-date cash to incentive drove cash year $XX clear prior provided XXXX prior capital lower are relative at XXXX was and investment the operating to adjusted the period.

million from million year, $XX year. and Free were million million, $XX up $XX expenditures capital cash was approximately prior flow last $XX versus

X-year financing we for and ensure X.X% facility have to term as X% an a the ranging uses to sufficient revolving needs. leverage with The and interest X.XXX% company the on ongoing the million fixed having SOFR our mentioned revolver As provide consists acquisition, recapitalized based a of term. structure a the and the close B loan earlier, base credit the term $XXX Aerospace loan deal to capital spread new facility capital with I with $X needs having the Each a MB with billion term to from spread. a X-year

point $XXX a before Euro rate. has an X.X% approximate interest drawn. around approximately lower profile that is structure rising revolver million and quarter order creating At average basis rate debt All hedged exposure to we have XX% that, new Within with interest of In million to based average $XXX approximately swaps. approximately end, of of and reduce the approximately in, XX% financing an of revolver was debt rates, million XXX fixed variable. debt, comes our the is bar $XXX

the X.X%. We now place, as Xx approximately on our being of our ratio, swaps new average at and interest defined at was by debt balance the at year-end interest net in approximately end. the With same X.Xx XXXX. the in the sheet, all rate With quarter our is agreement credit anticipate level end debt-to-EBITDA around

of now supplement. move to to X% X earnings We the We sales updated adjusted between XX% Turning from of be We'll with of share. margin XX%. $X.XX the range to forecasted down Slide X% per our our adjusted operating to and EPS up XXXX organic $X.XX for expect to year, $X.XX outlook. XXXX's adjusted in of

acquisition anticipated per transformation-related XXXX related restructuring adjusted and earnings share to are $X.XX to accounting to exclude $X.XX $X.XX of purchase related costs and transaction short-term activities, adjustments.

With rates, dilutive approximately be interest Aerospace latter forecast XXXX we in by largely remain now of XX% MB and in interest the and driven impact the disallowance, the dilutive the changes -- in to tax XXXX. transaction $X.XX expense

$X.X $X.X rate full be million, attributable a effective is to excluding we year of million excluding XX% A and income restructuring of few $X loan the expense anticipated million, of income approximately activities, outlook adjusted other to anticipate items. bridge other tax fees, between $XX XX%. Interest approximately be million to pension

CapEx diluted of and free for we better In million executed of average closing, several cash flow approximately of major approximately transformational generation. during $XX approximately million, Barnes actions shares $XX the $XX value long-term position to quarter million.

our commercial significant continue efforts face. remain efforts. from see shoots industrial the green performance Tom As operational restructuring improved announced on we we track, most to our remains and mentioned, Delivering challenge

and the Given results will potential the the underlying focus, our reflecting turn core execution business we of corner business. deliver

question. the open will now we call Operator, for

line first Osterland the Your Peter Instructions] question Truist. comes of [Operator from of

year-over-year appreciate I chart -- on first was. the EPS the the Keeping

get to that what the how impact related organically quarter the could when for call mix be you sense meaningful drivers how that and there, of lines from much productivity out or for acquisition the forward. the year-over-year we similar was in Aero or along improvement much So decline to look there? is else anything of trying the at for Just main a margins, moving

Sure.

give the accounting have. sense, on a intangible million quarterly by $X.X you accounting long-term just we of that quarter is will -- the a going impact items purchase most basis, amortization, be So around purchase the the forward. that driver And to a significant long-term far

significant month a September for impact impact. the in that's where So million the MB $X.X numbers. It was was

is impact are productivity thing mix, MB just the and but OEM would don't be initiatives, that the carry the RSP the our the mix introduction final They growth as end then the as of own the second margins in business which does. there, MRO. at are of impacts. the with lower growing, OE And The from It's that excellent MRO both well they're there. and they're

helpful. Industrial, order expectations markets? demand, demand downward Very end revision And in to your guidance on switching on conversations are seeing driven one, the largely customer Okay. you And for based then about Great. the other or market? automotive patterns was industrial what just sales specifically by across industrial

Peter, many markets strike for that since markets. the into Yes, them. the distribution had gas automotive don't question sell excellent nitrogen of of areas, look product can that sell MCS definitely we particularly is, through We can we products UAW a our But see through has portion into effect. we network, directly an the end have line down end to we see because that

is little So more picture bit opaque. there, demand a the

the for us demand. strike there's do We important know have effect, but markets an that a weak were tempered also definitely as UAW we China know market

of that. the But our So obviously, the effect, picture UAW news the planning an in softening. pushed and see the that that conservatively And we're But with driving for into the is that's allow going an with and conservatively that and -- carefully, best because very the UAW the estimate on obviously right But fourth would be we're having but in potential unclear orders unclear as the we're portion out now, resolution clearly, those. some us MCS quarter. through 'XX distributors. demand quarter it's expecting goes effects will we watching strike we of have to fourth recover strike coming quantified what planning we've being

line Walton next of of Myles Your comes from question the Research. Wolfe

maybe, -- there. the was the closed. drove start just from when Maybe from be $X.XX deal announcement if the that MB So to what deal the the you $X.XX Julie, just could to clear, in we can dilution

once the disallowance that -- that hit seeing interest Yes. delta. The magnitude in, was on with We're of geographic impact. primary full and of primary got came what's driver that going rates, we order was actually final the we numbers expense the with going the is rates the

Okay. Great.

that -- tax rate, So you you say when interest the just rate. mean rate, the not

the interest Exactly environment, rate exactly.

maybe help year And know guidance I get tax of rate it us should normalized guide for you you're we 'XX, forward is just what aligned then I on versus versus be as but what right. All mean, this what can ready to taxes. not to look was previously. just kind the

know I'm this a parts There's to be and that number to point love point moving pieces So out put ready lot I would at a in this to I XXXX. in time do for there. of able at that just don't time.

So for I apologize that.

that's No. you and And year I said, looking just like it to were look don't sure guidance good it's definitely XX% know was the That's strong causing for on then a high understandable. dilution, did guys think for teens. want guidance It's because down. quarter, just now and for MB. I changed I think does maybe it see strong anything the you for commercial like if you but OE, But the make I come It plus some fine. to

beyond mover biggest was Tom for in comments and industrial forecast. our change our can the on that, outlook my build The Yes.

of mentioned in the result ongoing products Control as demand that Motion also flows a our challenges and UAW that of facing Chinese Tom in through we're gas softness result nitrogen Solutions. As a

contributing outlook the for guidance full decline. Our to industrial deteriorated, year also

Julie, was talking Sorry, I commercial. within aerospace,

the have aerospace business. It's have products heard Oh, about decline. come that of no We're within portfolio amortization other the that the that that we caused into to and then talked earlier. withing that. mix, performance us expectations of apologize. I There's good market impact the aerospace. I No. the all changed feeling about very an that

Your next of from question Matt Davidson. of line the Summerville comes D.A.

questions. A couple of

follow-ups. markets orders et want Can that of medical out I activity order the more and First, seeing to what versus look personal a terms I have maybe there. about care that a you talk to versus you're the business inbound of in little And bit material like cetera? like automotive, then some parse packaging Molding in of Solutions end couple

Matt. all This X President to obviously, is, been packaging, very Personal Solutions, past Molding strong, Certainly, and Tom mold months. having particularly care temporary sales. for our the ] for medical, the close [

to We due are about on molds limitations. delivery XX weeks lead capacity quoting time and

on find mold healthy. the I side, very we're So

and book customers We remitted can and so more increase capability the we into have capacity to of strongly get the to continue there. off orders to

been have with automotive for EV of ICE-derived customers some been struggling particularly have challenges to in Our the runner markets end where hot China, in customers. from systems, we shift the

go-to-market not successful manage our commercial there in been have in We that trends strategies to well.

of the combination. weakness we're lines occurring to mobility where a seeing a product is markets, large operational commercialization shift portion that's pressure an transportation. to end as and the that's on that's as well those market in challenge China That in hot runner is So

more more horizon, it and repositioning is and on we're and resources it help get it being but strike of in that principal allow molding is dark pessimistic. bit and us focus and not would structure sales to on marketing as solutions will more for it market sales the integrating Of zone management outlook a cloud not affected, us its say the significantly, little commercial is our a traction. course, that, I UAW reason streamlining terms conservative a to

packaging personal business or over track sell automotive more the those tough into overdue it's medical. a includes transition fundamental care to to to make on get long strongly but a that markets. quarter, And third the needed to It's it's whether and

get MB extent how to get helpful can for you it way then a mathematically the see to you of are And bridge expecting down X. by can, if as next over coming you year-end tough all from X.Xx in follow-ups, the you EBITDA X to levered incremental 'XX of year. to be add one to out the How 'XX. of little down 'XX me my much would end of It's Julie, how sort you

generation if as to would with So working assistance a cash happening investment we management those at see a of the well, look continue see in We'll capital perspective we line contribute. what's which excellent continue -- decrease from top the our obviously the on to in fronts, will with growth.

We have noncash charges down. that are flowing contribute through the that to P&L that pay also

So and while the business see level. we're with our at for not on what about line of leverage we is cash side looking today, have EBITDA a that prepared that the our to top get to talk XXXX either to generation in the with path available expected data we

one just I'll ask then more. And Okay.

challenges if the we restructuring topics, numbers, those that savings And and Can a to ago, about actions assume on you're detail where days where productivity moving Aero. 'XX can that impact be a bit you of it be on those can in those that fix if the you're and So expecting give incremental they're little more would what these doing recap in great. that's I issues? what But underline talk would of go-forward may up. having then little kind you specifically XX was versus kind at 'XX and

Certainly.

facility, facility turn how into a corner quarter corner the with third those facility in had OEM performance So at the Matt, We've one started legacy challenges that in has to the positive started output. Barnes for to, There, plant -- is well as the in changes as and running Aerospace. that have operational we're the and facilities had specifically we the direction. actually turn Aero, we've of in leadership two spoken to has

Of month one make does not a trend. course,

So with corner facing. that we're closely was it leadership it the the kind new headwinds turned it of very from place, the watching but in has

we in bring the a It commercially to around performance that and The that performance itself is as facility challenges. changes engagement on into in so that situation. solution do and to on legacy challenges well, does improve is facility to operational reputation since both is trajectory, its operationally continuing a that have commercial has improve have it. aerospace based are is it we commercial it There work customers QX heading call issues turning facility It can Barnes The with highlighted process. second and that put and set that to premature an XXXX to historically. aftermarket business to growth is involve into in leadership still

So those [indiscernible] put to improve are in being by situation. reason that also place

individual was which It really just one to affected last instance. not of a it impact kind The particular highlight piece forward. asymmetric. typical a Aero. the that of the project was specific persistent of In one-off kind was productivity that of of a really something month There I that going facilities But that was one an productivity facility. continue month September, and it's expected is not to had would item relating is that's MB performance is just isolated and

as -- phased that So is on. we in aerospace provided -- going XXXX, transformation have the already we guidance there on comprehensive a move transformation into of program part communications

savings we Aerospace that of combined those to items, equal individual also together those impact the in acquisition MB X to the so synergy some are and -- management, add transformation parts. and highlighted the X together for they're those will project, terms things will integration but We just now that things of of being X but

consistent what And view changes programs. look still refreshed overall had guidance, we provide -- our regards transformation those what we'll those activities It's for to when with aerospace. like, now we we of in with but no provide a XXXX

actions follow-up talking today? you're my then on the And restructuring about savings from cadence, what's and incremental Julie new

cadence changed. actions of the the previously has So announced not is,

rate run towards which rate some new at These fourth generate run -- annualized $X.X to savings already beginning million quarter. implemented that of of the at $X actions tracking million. still around of should we're million annually, So of around basis were the $XX

in question So we'll your this those And on down will at prior year ability follow year, of of that worth. accelerated help thing, next portion reap us tapers year. pace. support just giving the benefits months to greater us to another that's We've clearly, that also cash pay of Matt, this had up a next an although, off year, debt outflow restructuring activities significant a couple

comes line of question Christopher from Oppenheimer. next your And the Glynn of

Did the -- and with kind of lead XX-week did multi-cavity you that win times on had lead time? a rates you impact say say for what's Tom, you

Chris, leader business. has Emanuele has been that sales team in Solutions, who great driving the Orlando, mold engagement Molding extremely has been globally In our multicavity restructured successful question. that of

very capacity -- investments unique Molding have as rates the been high-end to making of we booked the he work lead efforts globally. our capacity company. that the win increase very We're within And effective and high. a down of effectively part with has that We're the of Our Solutions systems provider again. done the global up back molding times investments to capacity get those

very Our been been very good. -- good, and our win pricing has win our rates have

in done you building lines, those As there those is as accounting a for is product completion that percentage know, of molds. we're the

will our momentum now. is of So forward. we time, despite get operating the primary commercial But our for long into remittance to move right see is leverage that some as P&L focus lead we that output

asymmetry full percentages, And Unfortunately, pricing the offset weakness. hurting in runner same good time to we our solutions transportation, of through, and runner good capacity. the hot seeing win mold limitation particularly effect capacity in So at China, lines it's need is the mobility the but the we ability and in flow have focused and be situation happening good hot of weak. product rate molding a good engagement, more customer where just it's

on but solution side to work -- going equation. a we're one is both to an of a have of lot is capacity it, I work So commercial improvements moving set, set. output the one expect 'XX, operational what But sides mold we into is that

So they're different.

Okay.

expectations like sounds RFP different quote they it that and bid aren't times for what lead as customer So are. actual come all and your from

not a or friction. You're a seeing rub there

advantage take want certainly, of way times It's I'm of technologies XX to market world-class. And our not the us XX really a in there, Chris, those for the favorable products is there. high demand the as manufacturing of holding want to conditions. activities day, the XX seeing lot in we market friction output. are is squarely and It's too commercial -- long. be to customers up. at with very weeks us lead end And we demand. weeks

investments those that's where So concentrated. are

I way like other on runners, and hot it's the the flip said, the around. And side

need of mobility, challenges to we're molding commercial get penetrating the and plenty markets, customers, in into market capacity. manufacturing that operating particularly to have different ensure engagement We automotive engagement with We solutions. better transportation,

And of a at considerable you as course, happening consolidation time is and that amount the rationalization. of facility know, operational same as

the tough So do to but needed. those it's time, all at same

the be we as Aerospace, heard MB to relative will directional. so integration you'll for X, there. of directional next terms anything the maybe about some XXXX, in hand, months would then we it and dilutive but be think also, more of instead And that doing the we $X.XX on still one dilution And Okay. X, XX year given expect even normalization

team out through working is those wouldn't complicated to the and -- want put numbers So of elements. a continuing still want there the we're really work I because wouldn't still something accounting lot fine-tune to to to I

that million take to that amortization, $X.X in Does that [indiscernible] flux, quarter . a mean I that's the

will No, be... it

for not over the the will that MB synergy being towards as you a Chris. of that have is constant. course the as year, it dilutive. obviously a implemented significantly plan variable, be that That's Aerospace. year robust the be And to No, end would the going less rather buffer know, we of But

to of 'XX have just qualitative give perspective do Cognizant information. So more there's definitive on given you kind here. you guidance planning work But from more of here, to a statements qualitative more of lot for give statements kind to than we this a

That sense. Okay. makes

Any P&L, cash bit Obviously, might exercise little on directionally. can flow. going is on on the the free the still guide free in put a we getting tail us with something and -- margin out free of working pin expectations And be But you today. cash parameters be cash should is accounting the the even move margin worked the What be Enterprise that might some going to easier for Barnes to or little to in have way which things a are a terms for of and donkey caveat GAAP consolidations ring flow that capital. adjustments 'XX? flow fence

We we provide on We cash that provide walk to excellent as information need from question. need to Peter's heard flows. question deleveraging it well. and of Yes. Chris, a know kind

visibility be things provided two I have give looking think together to the to for. the you're you

it. preliminary we've deal-related We the differential because historically terms of it. when in done projections, know And we a other of include for just share XXXX our EPS not between We're of and clearer amort cash have the what of view guidance to ready has expenses. a not the we provide investors, that picture to

will and take back we as a with on as picture that clearer come EBITDA/cash. we as So question well information provide yours, Peter's

understand for can So you picture looks what 'XX. that like

XXXX, it position it. the putting drive as to say and reduction capital able we've the plan deleverage operationally plans, levers and got Suffice synergy so on well ourselves and to cash working operationally, a through to to as in do be that consolidation we

We magnitude one an item you as of we'll take beginning getting year. just the the walk. is, each the that action how -- of and the we're have next at give to can to there understand what you provide so And

There are turn remarks. call time. I closing to this at questions no the Pitts now for further back Bill will

today's and Thank quarter us earnings ]. of with this and all we now thank [ to we full JL XXXX joining our February for in you look you, fourth will you with to like year morning, speaking forward call. Operator, call. next conclude conference We'd

conference This call. concludes today's

disconnect. now may You