Cooper Tire & Rubber (CTB)

Jerry Bialek Vice President, International Finance, and Treasurer
Brad Hughes Chief Executive Officer
Chris Eperjesy Chief Financial Officer
Rod Lache Wolfe Research
James Picariello KeyBanc Capital Markets
Ryan Brinkman JP Morgan
Chris Van Horn B. Riley FBR
Bret Jordan Jefferies
Call transcript
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Good morning, and welcome to Cooper Tire & Rubber Company's first quarter earnings call and webcast [Operator Instructions].

I'd now like to turn the conference over to Jerry Bialek. Please go ahead.

Jerry Bialek

Good morning, everyone, and thank you for joining the call today. This is Jerry Bialek, Cooper's Vice President, International Finance, and Treasurer. our Chief Officer, Financial with Chris Hughes; today our Eperjesy, Officer. here Chief Brad Executive and I'm

During our earnings and of are conversation materially differences related company Rubber to may control. today, Actual this from you in may Information financial risk the the Company. factors no result and and included hear current earlier results be management has business projections. statements may on SEC. forward-looking a operations or additional we results limited Cooper the on morning forecasts & which the future Tire differ forward-looking over Such on statements factors information issued company's release in file these and reports of with

of and update. XXXX the company's During call, this first operating a business as overview financial well as we will an results quarter provide

we that Our non-GAAP information slides includes release this The will and will of later certain note the most measures. to that comparable Please on GAAP a the a in SEC include these measures summarize directly be the financial earnings linked set about news a in to financial call. the slides measures that XX-Q with reconciliation reference and included release link filed information today.

the Following for our call will prepared remarks, a we open participants to question-and-answer session.

the turn call Brad. I'll over to Now

Brad Hughes

and morning, Jerry, everyone. good you, Thank

to major personal temporary manufacturing to the help from in our employees Before positively Whether above working donations the measures we of overcome responded risen Cooper to who unprecedented this centers, home, the times. communities, have facility and and protective around employees talk and health sacrifices workers hospitals equipment Cooper with operating thanking about Coronavirus our going and by world to first made and quarter, healthcare in these begin I Cooper cooperating rigorous want productively safety impacts challenge. morning under supplies to during closures or have have deliver of our beyond personal distribution

on our commitments focused In that these to the actions and health has other the and in our stakeholders. all of health priorities, people, of and sick restrictions, crisis, as many arrangements, social disinfecting beginning our the the safety have to stay priorities staggered of customers distancing, such visitor company with safety bans, travel or consistently we from communities taken enterprise and additional if a From measures responsibilities cleaning ranging broader line key and home exposed our of of facilities, series across equipment remain orders, effect schedules others. work-from-home and and our

are operation of Today, all Mexico. of world in the the exception our with plants the U.K. our and in manufacturing around facilities

Our U.K. is facility you was temporarily back March April manufacturing XX closed wholly in which plant owned, recall, so XX and successfully now. Cooper's remain now up. reopened Mexico, as and was of will ramping for will

government facility the in decision federal to nonessential, temporarily facility due again is a as to recent the classify However, the by Mexico shut down.

the a restarted Serbia in closed week and about beginning last plants U.S. Our weeks. period being of five after for

ramp Year throughout customer continued to in today. up have improving Asia, which To quarter distribution to in operations to mid-February and been centers globe the to their the temporarily needs, and operate for since back Our to due New continue facilities Chinese operation the in generally remain our Coronavirus, around meet continued shutdown extended meet demand.

aggressive due cash. In also decreased industry and addition to demand took respond to wide measures Cooper employee actions to to health Coronavirus, preserve to to and tires taken safety protect for

precaution measures as very we to a take cash believe are due liquidity was we we uncertainty and While in of it the the situation. additional to strong current felt position, appropriate a

capital well capital and curtailments, as included In actions addition to spending. as discretionary the have production working these expenditures, reducing

of XXX(k) our a company to XX%. and has salary our taken salaried reduced employee XX% and XX%, The We Directors to suspended of by also majority the of team leadership reduction workforce contributions Board a members temporary temporarily have plans XX% retainers has executive pension Our their of discretionary taken salary temporarily between cash decrease. contributions.

We also salaried number furloughed hourly temporarily a and personnel. of

and in $XXX facilities uncertain in these position million unprecedented times, with also initiatives financial To footprint. were revolving considerable we help our we into borrowing quarter. appropriate the and momentum. capacity, financial cash credit and down manufacturing previously against to times a our of drew a solid Cooper global on ensure stated and the went solid well We strategic Coronavirus, inventory flexible in levels tracking a XXXX cash our Prior position onset flexibility goals, these first had

position. Cooper we will to believe strong when economy ahead a be in the Looking recovers,

U.S. stand period out will transformed Over a even We uncertainty. we of want tires. economy, be tires believe research, unprecedented this situation we entered be of high-quality consumer emerge the continues more consumer-driven affordable U.S. position on consumers proposition, Cooper be Cooper we in price, partner we value this believe and important that strength, Again, that more will Cooper compelling of that the from for future and available great consumer the believe even an and coming we products to stronger. grow, confidence it with our believe Based years, in organization at past brand consumers will the more for we a buy even our in to our of a to have two choice. tires of consumers the into manufacturing company in where heritage

I to more financial will detail. Chris Eperjesy the call review performance to that, over in With our turn

Chris Eperjesy

Thank you, Brad.

quarter then the review business some resiliency our in through healthy the greater taking the Additionally, we actions discuss results, and detail our I'm the keep crisis. to during times. will I the globe across like of to teams to are these unprecedented I would adaptability recognize and first of going first

driven of X.X% XXXX. or first compared to operating quarter of impact, currency $XX lower XXXX. or million price unit of favorable $XX profit $XXX by offset unfavorable with was X.X% and from consolidated foreign sales million million, partially down $X loss This Operating Moving in of were mix. by Sales volume $X results. was in $XXX million XX.X% decrease million $XX of million and million

plant summarized quarter other million an XXXX. operating per favorable by manufacturing supplemental $XX share quarter First million of page per $X to SG&A attributable compared which manufacturing of $X and expenses. volume, higher primarily $X of of of of This related was unit was costs, costs to $X.XX loss the $X.XX in of The higher $XX price factors, share material raw costs. $XX COVID-XX lower million $X earnings and mix pandemic. on million are temporary and five of favorable million of following Diluted to offset restructuring compared XXXX deck: increased higher the profit first million of costs, with million shutdowns impacted slide were costs lower the the partially was by

lower segment unit unit by result of with and Americas for first of XX.X% performance, Segment volume was year compared quarter foreign our million favorable moving Now to in the the on XXXX Tire currency down offset a $XXX of $XX and period unfavorable million, $X were mix. same impact, million Segment as million sales partially of $XXX starting volume $X price million ago. Operations. from a down to XX.X%

XX.X% the decreased Our U.S. and unit volume XX.X% period. XX.X%, light for total the the decreased decreased USTMA while industry vehicle

of profit restructuring partially related net transition. First compared favorable million X.X% costs This the $XX mix. lower favorable quarter offset manufacturing volume million of $XX $XX and of million costs raw million included: higher by of million $XX operating of million decreased million or costs, with unfavorable profit in $XX to sales of $XX Americas material to Mexico XXXX. and sales X.X% or and of $X the Operating in was price

Now turning to Operations. Tire our International

first earlier the foreign by impact and million currency of from the result Asia, offset unit by $XXX impact, of quarter for were unit unit quarter price of lower and $X million volume volume down XX.X% much primarily decreased XXXX. partially by mix. $XX experienced XX.X%, quarter unfavorable the other first sales $X of Net the which Coronavirus was in million, favorable lower volume This million than Segment driven in regions. of driven the

$XX operating quarter loss in operations International in of loss million XXXX. first compared to The our $X operating was million

year manufacturing, of costs of of costs and price million mix. $X favorable by $X $X volume $XX $X million a material offset million included: and to and favorable This partially quarter compared The period of ago. of million other the raw same unfavorable million was

first included quarter million our restructuring vehicle production tire facility, of related light cease a to also $X impacting XXXX at decision The the charge positively to Melksham our comparison. year-over-year

Moving to materials. raw

X% fourth quarter Our from index XXX.X decreased first XXXX raw raw material of first index in to increased the quarter The in XXXX. the sequentially XXX.X of X.X% material XXXX. of the from quarter

with in be line expectation basis, our year-over-year slightly sequentially. This a but down on to up was

basis year-over-year look be we in down the second forward, will we As of raw material quarter XXXX. a anticipate and sequentially costs on

a by impacted been have favorable resulting oil, particularly prices, of commodity aware, are trends. events, you As global series in

precisely about our However, this market in period forecast remain of we volatility. cautious to ability

XXXX reform. tax annual rate $X effective XXXX company XX.X% to the quarter the of the benefit business at XX, result related various of for the for prior. rate first in The same was some during the favorable forecasted decreased of certain versus benefit compared rate due year deductibility assets. on funding tax the and which negative The company's first additional for Other included $X.X effective is the regulations expenses quarter incurred rate U.S. plan tax improved jurisdictions the tax rates income XXXX, for earnings quarter the included prior position Now first million to tax of X.X% the returns The primarily The final tax of based of corporate tax unrecognized year. a This to expenses on with as quarter. to period for the impact was related December tax postretirement and items. operates. pension million the

in available XX-Q SEC with on our will later detail that taxes filed More today. the Form be be our will

cash first Return our some with million equivalents the drew $XXX down to revolving invested was compared trailing X.X% Capital million the quarter the end of balance million year company highlights. for four first quarter. with in $XX first and credit the cash compared facilities the during period a quarter $XX XXXX. the of the end flows unrestricted capital million were same million Turning at had The and the Cooper cash $XXX quarters. on $XXX At quarter, in of on ago. expenditures sheet in

Mexico. the the million In buyout of in addition, paid our $XX company partner for

the in been these year-over-year first have up quarter. Excluding slightly items, cash two would

we the While believe challenges not in currently remain, second do have cash a quarter. substantial we usage

temporary plans; employee liquidity: reduced pension and salaried As leadership cash for members; furloughed employees. salaried and reduced expenditures and spending; board employees have taken Brad maintain discretionary suspended and company we to capital to contributions capital, reduced and executive discretionary XXX-K salaries hourly for the retainers mentioned earlier, contributions and following some working actions most

$XXX had million cash have quarter. cash view equivalents, the maintain These our position At us second and of actions cash the of end reinforcing the we helped of the quarter. of end further our since April,

In facility seasonal over expect addition, year and in to cash we have cash credit nature $XXX fourth and typically of would our still same XXXX. available. we the we under of the current use our the in significant first business, in months nine quarter, the generate the due million Recall,

provide our balance sheet. pertains allocation. obviously this an our capital is me to and in it conserving priority In update protecting Let strategic cash as environment, further

our is severity First, have but duration dependent back $XXX scaled full and between this $XXX pandemic. now to capital expenditure expect we expenditures capital the the plans million year and and be XXXX on of dramatically million,

emphasis be would it previously share near term. in will on our said the prudent have the we we Again, to pertains valuation as share given we liquidity, pursue in repurchases, our of repurchases more more opportunistically. Second,

continue And support third, dividend. to quarterly our we

and dividend declare current during to the we a quarterly dividend Board this a expect situation, Board quarterly will quarter. of continue on the evaluate our management $X.XXX share per While basis regular to our

As sheet Brad the indicated strong earlier, a year in we position. entered balance

enable the this the of from crisis business. to to continues, emerge a in growth will our position We and steps financial continue have to the taken current our necessary to strength in ensure invest us

Brad? I'll now the turn call updated outlook. our Brad back for to over

Brad Hughes

financial XXXX year issued of to uncertainties this results resulting the we rapidly and cannot, time, the Coronavirus which at Chris. operating evolving on or continued the our pandemic, and previously withdrawn year. announced Due have pandemic outlook, for the from We impacts its full the and our was extent XX. February environment predict on Thanks, duration

our believe quarter, Given operating be Coronavirus that significant impact likely the a on that of will second quarter profit. challenging most we will the for the year have

expect of As now a Chris the will we quarter the not cash XXXX. in the we said, currently confident usage place, Overall, are actions that in with do Cooper Coronavirus second substantial storm. weather

pandemic. $XXX year full depend the now severity and dramatically the be expenditure have and back million expenditures We between capital to the ultimately expect scaled plans of this will XXXX $XXX our capital but and duration on million,

Prior relative path our strategic that entered period sheet original this We financial and to plan the to our a were validating challenging we the outlook, balance on strong future. flexibility. pace right our for pandemic, remains with

will we challenges, and Coronavirus, face the While the of Cooper forward many believe will we to impacts opportunities ahead. uncertainty and we the overcome look

We our economy this. to year improve expect the progresses that the as reflect results will and

we continue what is customers safety, right will on for health employee communities, For now, doing key to our and focus other stakeholders. and

that, move please? the questions. to With take your let's question, will you Operator, first


Instructions]. Lache go Wolfe ahead. with [Operator question Please Today's Rod Research. first from comes

Rod Lache

Good questions. of Had morning, everybody. couple a

thinking of you for wrong? that flow-neutral elaborate that kind manufacturing, just toughest, cash outlook through tracking? right little year, And get mentioned uncertainty First but bit like And going of and for actually or downs perspective, of all, halfway be a make QX could shaping you sounds you for inflow how up lot working hearing how there's an quarter is to about the it's I this a volume that a does am about just it from You now? I given you that know about more we're will what the a capital the maybe to it? but ups are given how look is of like the

Brad Hughes

with has pattern cyclical we a liquidation. what and inventories and building -- backwards -- starting is the the -- recover cash of using tires But working Well, industry with then on. AR you're But Rod, using expect end going there to expect as second to that a what you year, The there that, this the of that regard to to cash, a be don't over And through the the quarter. and to with capital that work where we the quarters cash that significant similar will you regard up we tire usage see know. note the thought as couple quarter, I'll said, be first was flow, things we're of cash cash to lot fourth it year. a in three second the of we important quarter in to you the

a expect cash in of First substantial or all, quarter. that don't we significant the usage

we be regarding as look think second the most profit. the year, challenging, specifically quarter However, will at do full that we operating that the

of that we're this. statement so And making as part

the made is that volume, around statement operating just Regarding the profit. biggest to I contributor

caused caused at suggest that timing began when a look of tires, most activity was to of this down today's of restrictions would challenging month than going half to the the to second plants think not the Having perspective, close quarter. we and track we period. to first that, the April. is again, April into From that Most of to the shut data that April you through to When economic be that said half close the volume due limitations people us was down. our and buy and that of better

early better of just of a while of little last part early than was the the the May And May, part that bit part into we're April.

to signs in is long that until we're go So to through it, are demand. the the there quarter some return way but

Rod Lache

But that. just clarify to

expecting So you -- that kind you that that, seasonal the use pattern, of without would working some similar surprised you're benefit QX saying break-even working you're yet, I'm history, quarter, kind cash? tougher, QX break-even are capital, in be of expecting to and was free would a a any pattern. QX, see with from just kind capital of typical

Brad Hughes

Plants were been this be that's a a a going not to going -- usage are precise starting challenged up quarter they're normal you quarter. exception when the a the more from for the have in substantial But time, Melksham. things of do volume down largely be Mexico actually build with to cash Well, At words. and again, while point perspective. in and we back in of we're to tires the are that

took etcetera. with uncertainty a during how preserving to don't whole and Chris take that, second usage. that to relative to there given, noted, I cash going is expect substantial going it make volume we of come as most about think, to profit, having especially to of is cash that, where a we still, this were period, actions go, challenging we both said we be Having sure number all said long quarter, the operating back Even But that, year. the

Rod Lache

update period? Or more. two that Just booking look all are, your the right the those are basis, the into in index spot us are lastly, commodities particularly And absorbed From an you then, accounting at what -- are a materials at into where producing now? perspective, where expensing overhead inventory? you on can be tires low oil-derived if given on you raw the are were you would the you to

Brad Hughes

what moment, think so manufacturing you that cost on to regard I expect I'll if he of and can to and costs with Chris pass could the sold see impact. way specifically when a in do I'll you goods comment is, to that recording the we're

overall, I is see Rod, right that when the promotional We're actions have -- the at we recent is we on Cooper now, think been by, way of activity. pricing approach only that lot sticking, but including environment competitors. that some not I seeing a not this would announced the look of

And seeing, to and the mix low. are relatively industry, prices from commodity as benefit raw the look for materials, now we for still when at solid well. markets We're continue you that right

your for going our see begin with over question. pretty it So it should to to to I'm a favorable And put when when volumes of the Chris that, you respond see environment pass in tire first return, to industry. all we we together, part to profitability

Chris Eperjesy

and with of But expenses, absorbed be in the there's do period those shutdown, to producing would will everything operating, obviously, be those inventory. we expenses. some extent Obviously, costs we're When we're GAAP. a in accordance


today our Picariello And next from with KeyBanc Please Capital ahead. question comes Markets. James go

James Picariello

can with business your your -- Just you And And to the quarter are the the was -- things? that. that And the business curious, of then did then replacement side pandemic. TBR second in TBR in trend demand ramp-up Vietnam, quarter? business production in the starting in start follow-on you your How on JV any the how impact resilience the supposed tariffs TBR quantify quarter? seeing did my before Americas. Sailun to The in

delayed Just on wondering track that's bit? still if a or

Brad Hughes

business, we than affected, People TBR an as so that tractors and are the is, it's the America in remain going North it's particularly industry, of year. over industry and the way reasonably and at far trailers vehicle right course the think I as part Overall, light look healthy like equipment, to less still it using tire now. looks the of that

know, are now, lines what to some we're continuing out front we there are in degree, their the As in demand. TBR to in overall that -- are do and those seeing folks the that right jobs all is, reflected some of

a market, it, going year to choppy. on healthy. position tariffs. probably Tariffs, But OE you and year the hand our to like we're will and a little the for last in overall, give remain this Chris it's be strong looks our I'll different slightly Quarter-to-quarter, others again, a we to Clearly, but market, look business. expecting over than replacement year TBR specifics relatively that still relatively volumes is as at the replacement the

but has by impacted up. global from Vietnam not joint are the substantially. does is It ramp in continue we been to our the seeing what somewhat venture Coronavirus, However, effects

of track behind -- on essentially where the bit in to this lagging on this largely we be pace little that's to so thought was but period. just point through a is it the track it it And on ramp-up, stayed time, potentially has at going

in continue balance tariffs. the as And through over then, to we facility it you so I'll the the we move Chris, we'll are, to tires that hand of And bring begin year. to from and on

Chris Eperjesy

On the within was tariffs, year-over-year, a of couple it millions.

little So of of duty recall, year, volume. last been at benefit may year, end this we started primarily bit the you last driven drawback. year to a have the than would But have by lower

So us quarter. that duty in also the benefited drawback

$X range. So that in $X been million year-over-year, to it would million have down

James Picariello

completely And before cut on pandemic, have, to the think, a then is the of understandable, facilities. toward heavy Serbia you did but I and Mexico dramatic mean, investments, CapEx, the just I slate which the geared

more if thoughts wondering facilities? changes overall -- just strategy but converting there. in overall your So cost delays Just this your volume through maybe your lower changes, curious those not on

Brad Hughes

vast large part, to many the look that with the million change as the to was to sure in a the that now the position this we the around the plan doing, million to for going timing. strong we is economies as time objective timing $XXX many, adjusted length of business our that year of industry one, $XXX and majority number make guidance is, $XXX million In And pandemic at sustain were are the is compared $XXX and to to liquidity through of be companies world. to cash going affect the million,

to back that be begin get to initiatives place to and it equation include of like done terms to through we back we economic track that we've way begins in of going. the pleased who for will planning things the comes to with market some to tire we that replacement continue prepared and initiatives perspective, But Serbia. the we when that. where emerge our like to continued on the We've does the were for flow commercial from to think that as in feel position market from a start back be that in be we and can get Mexico had as number we those a initiatives right a positioned of wanted that come also to Cooper that and this an doing value We out extent our expect to that with see tire the to to tire this. And are is we uniquely strategic of demand with on of would we tires, pursue really we good replacement job early track

So do full have that. we a to still intent

think are are But cash shut what is plants term happen our it we've going manufacturers down, opportunity the anyway. allow to equipment this, position shut to with medium to when we strong manage down, arises. us that plans was come back right the then back on when term of to our for get and and near when done the Some the going

James Picariello

to any facility? does Findlay your successful renegotiation unions the with of And the cut the tied at

Brad Hughes

be we very related that. agreement wouldn't able facility reach to pleased that. there to directly Findlay directly none that with this were at We're of anything No, the to -- that steelworkers and is tied but our


Ryan Please next Brinkman comes Our ahead. question go with JP from Morgan.

Ryan Brinkman

Hi, how for did it in So you excessive early output as demand. of add since I good morning, thanks better the And from for seen called your since currently plants now? lockdowns, how though, that that the in output updating your that most of down And the trying operate supply the it your going much under I then? plants of has factories? even think, be are think to point fairly to think part of stand XQ in diminished guess newly all pre-pandemic with imply went how almost starting then about inventory might which is for back has normal into level at inventory up up, a now. channel? I inventory does the imagining miles also as about, some I'm understand is shipment what was what does forward help after pressure. so think be when then? driven, volume? the But thinking improved during demand clearly continue, pandemic, happening entirely shipments Is to began for evolved headed us typically, light I'm is case? might you it which can it about right? what Because

Brad Hughes

felt came the quarter, early of first inventory good inventory the was going our levels, we and quarter, channel inventory the not hand, about -- Cooper the felt we the the position. on only and our had we frankly, where about good The into for and And for coming talk I'm to inventory about second into part frankly, really Cooper. inventory meaning we were positions, we here,

when all then demand going this you at saw that. -- to what our we -- but to did And demand we've centers, inventory the demand, about we see actions that the safe the then of sure to to looked and we in plants for pretty keeping the were true. also sustain I and in we were which And and shut first we we drop good we what our was at we so, healthy, of demand the as able and to that to and people saw our in and make distribution where looking think took we thought felt we meet demand in was priority be and saw were that the our customers down, unfolded period to for we're supply a had And were near seeing be term in the that proved we from time. timing

for some inventory stronger have We market, to need to what the I back level inventory we we're specifically. approach levels. tires, as if would say the in typically a to we're than we would at as is look at now, it been begin higher build tires, now we of see replacement seasons at return demand right going selling

plants that The bit in period than a up. a as our will take ramp little longer ramping that to plants so we have -- in would up. time normal of a we're we mind shutdown typically And course. take It's

so with And to achieve where and the up along ramp to up. demand. position social take plants bring fully it'll up to them we need that bit in looking back can at a being we're ramp the longer -- But spacing, achieve, distancing them we a little and

utilization going reasonably as to quarter. good return that I during rate we see the they're we're so And to full exit to return them probably production not to think second the second going quarter, but

Ryan Brinkman

dimension or prices only Rod's raws? can and the tire in are for hold input EBIT start these possibly to and to biggest raws was Do question. unabsorbed I able earnings cost what in expect volume things oil in gasoline the steady of say continue versus Would perspective, you all year? hopefully, relation in end by you of you fact, clearly, response terms of should you cost it normalize. are your expect that will that in And can miles price then, decline price the -- sticking prices think, you, And out? calling primarily that the walk driver now an in prices, manufacturing versus is could news that modestly driven I hold once from the overhead are raws overhead some decline replace point but makers eventually heard to, to price as up to great here, be tailwind maybe at possible amid

Brad Hughes

really on now, Well, I think point, been appears, have difficult the Ryan. a it's that do new are positive there coming isn't into promotional activity lot to think and the and projections I lock that a the of that that's this those the market industry it maintain forecast sign we into put into at lot pricing seen of marketplace. a right

without is a So that positive a doubt.

think I to mix, tires entering going on reaching natural in have mix that's of car are now. improvement are mentioned types park be driven replacement vehicles and stage the entered there's earlier, a that as have a going what by or I been to

do regard industry we think that into relationship. seeing of versus hopefully that now, then with if to for I a then today the industry be positive And scenario think for that along will future the quarters demand And the of margins a that with tires that we'll I lot I combines bit where so raw volume that I And that Cooper, price/mix with this. the and hold see -- the materials of that for stay think get they a a we as profit on to are to that tailwind. profitability will so creates the come raws the we continue are see think


our Please today B. from next ahead. go And Van Chris with Riley question Horn comes FBR.

Chris Van Horn

for thanks everyone, everyone my is call, well. hope and morning taking Good doing

you out So curious I'm market customers talked and or how you're cancellations how expanding Are and hearing from may things out? channels, potential playing about that? so shifting you right affecting with just that are customers that this the or to be that's disruption rolling

Brad Hughes

pursue to if successfully on the Chris, making we're they're good that commercial feel about had say, been pursuing it. initiatives progress very anything, I'd continuing to and the continue the teams strategic we

customers working is are from they've new of home, etc., I'd the directly spots, though working bright continued with One be customers. to potential that even the say, folks and existing

top like we we momentum that this, the going we're get the out done felt to early continue -- X. to building big we build this regard now done of retail the year. opportunities of into to That's were What positioned, that's to continuing. in side some when that feel of talked we that the in carrying on. we what we had with we've see to we've And about in are we've We've and part that the like retailers, we're well positive other OE, with continue the new

based I our probably a we think that omnichannel overall it's support supplier won very Walmart worth award on them. from prestigious noting of

enter but work So not their with with over just doing some e-commerce very me part work terms this and what a that and we're only make retail that to them on been these continued to restrictions. what hadn't they're platform, add, proud we more and the continuing pilots that also some of during period around continues of doing adding locations we to the we're were launched businesses in-store where we've them. there the did before. of focus Team even has been available where And country, new we in

but momentum and out. fourth going quarter are return first or in little that, like momentum we it we've the had, bit take that end begins Cooper to Now is feel momentum we're going when see still economy got and back we to out. the we point in not may that was improve, to longer improve we that that of only quarter, roll particularly the to the starting a that it the as But all gain to felt

Chris Van Horn

And perspective, about a your And chain supply then are suppliers storm? the impacts you weathering from any are how seeing there?

Brad Hughes


So have held up Supply good now. around far, to I so get point, the there. going globe, it's well. tested And think to chains this

ramp-ups as support the supply we feel continue think is begin our others far, the about our feel their to to we and work through test so we've and to this, our But with conversations with supply done ability us. confident ramp our production. be good now based I on going up base, that to through base, through but we


Jordan Jefferies. comes ahead. Our from Bret go with Please next question

Bret Jordan

trade-down, POS as visibility two 'XX, a pickup to in any as volumes shock is as we sort you maybe Do lower-priced driving have in of people not whether Tier look a alternatives? or sort saw of for this 'XX

Brad Hughes

Yes, a is we better hearing spot that a of sweet the from and number Certainly are that people feel there a we're is us. we customers from looking value, today. like for data have what better appears POS perspective, vignette our large is, for it that

value to great going people that well. tires buying to we're to that that great have be as participate tires, -- at We value. And return proposition positioned well really with to a

than this on we're we'll volume see. is continue. that into that so is we've might is now it's period. it's thinner and gone hearing market seeing and multiple -- customers And hard through are a what demand that, that returning little their data that there's be But because POS normally it right But the as that from real they certainly, expectation will that the when

Bret Jordan

down. huge standpoint, I short a changed? ATD in stressed And anything whether going further shock? space Tirehub obviously, from change is be see mean, you period the channel, tire Do down shock the of I think even the given a or I to then at as just guess level, do volume or a you And the any initiative volume given distribution look there's contraction guess maybe shop time. turned you in obviously,

Brad Hughes

this point won't partners isn't that I there there's to, have hard where hard during be specific implications shock but it's partners whether period going kind to stronger could it some. an I that or to this challenged don't that there up, to were on of imagine some examples that some take economic I ends really through consolidation or imagine rationalization, that it's that Yes, be going be think

we see through a is this mean Frankly, to to our and to you're that this the going base that you the jolt this have any expect all of point, be I But of really that we're not point in that at not some to seen it. customer time, have way lot fallout. of going that a in industry at another bit

a have. that And have, this we the with chance agile, so I believe to to Cooper will be remain really step win being with when time a a though, being seen. that we is more smaller, that the team capabilities and back, that has take

years opportunity, is team we the think we a for an team to some when of are -- the changes saw offer. there I we knows think another value I proposition saw shine, ago only or where to this I to small changes our when Cooper when and that that our opportunity of But turned the is how not think of couple within some the industry consolidation big into respond there in because happening industry, that. team


this gentlemen, like for conference marks. concludes session. to the I'd the and over turn any Brad ladies to And Hughes back final question-and-answer

Brad Hughes

Cooper I as of Okay. the Thank use thank also you, there to responders everybody, this for participating want opportunity an today. front out all the you the people on first and line to we and team. to through the thank as their reiterate and all for specifically And thank the this way sacrifice. want work to our Coronavirus work them also I pandemic

turn. life's is every purpose deserves confidence, journeys Our through and Cooper to is that there at with everyone travel

journey not were to going be stakeholders. and give recent number continues a us expected, has there all probably the other -- we're twists been turns key consumers that and of customers but our to our for our had team confidence Cooper that Our and

thank please your all Thanks, this And you the today. on operator. them safe as time, I conclude want and healthy. to for and stay of stay thank then we line, for so you And


you, sir. for presentation. all today's concludes conference thank cal. This today's attending Thank We you

have You may day. now a your wonderful and disconnect lines,