Cooper Tire & Rubber (CTB)

Jacob Drerup Manager, Investor Relations
Brad Hughes Chief Executive Officer
Jerry Bialek Interim Chief Financial Officer, VP, International Finance & Treasurer
James Picariello KeyBanc
Rod Lache Wolfe Research
Bret Jordan Jefferies
Ryan Brinkman JPMorgan
John Healy Northcoast Research
Call transcript
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[00:00:03] Good morning and welcome to the Cooper Tire and Rubber Company's third quarter earnings call and webcast at this time, all participants on the call and listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time if anyone should require assistance during the conference, please press stores and zero on your telephone as a reminder, this conference call is being recorded. I would now like to turn the conference over to Jacob Drerup. Please go ahead, sir.

Jacob Drerup

[00:00:30] Good morning, everyone, and thank you for joining the call today. manager relations. Cooper's Jacob is of investor This I'm Hughes, financial Injury with our officer. officer, Brad chief executive Bilic, here today our interim chief

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

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

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

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

to Now Brad. I'll over the turn call

Brad Hughes

Cooper. well teams strong everyone. morning, these great good and morning for globe, as as to the Cooper through to want partners and well to thanking customers commitment times, perform still Jacob, I as start you, a showing loyalty Thank around continuing and [XX:XX:XX] resilience by as uncertain this our out

together confidence. not the of with level Tire's. Our life's without people third travel needs of could demonstrates the many meet Cooper that quarter be journeys to through performance possible consumers who achievement a coming

international and nine of improved Cooper significant for nearly cash dollars strategic confident five way [XX:XX:XX] had volume been more runway the hundred continued in dollars, that segment, any the of are with for free records an pursuing an five for we third to are ending XX year, and over one hold in same billion quarter initiatives increased dollars with you performance million operating million period in US that growth. volume loss percent increased dollars, compared seven that last strong eight noted the dollars, percent above this the five our we both Cooper's profit in million the hundred six operating net percent point two and outpaced total with international point six to or two of twenty in sales far segments, hundred industry, quarter had unit net operating or a the release increased news driven represent net share sixty time Americas all growth, included twenty and hundred profit point one US sales gains by and of seventy morning, As the look million have million profit of six seventy driving volume and cash percent very dollars four earlier which operating increases million consolidated one of of of that six quarter market it, percent sales. of liquidity. Both our Americas flow, and we dollars, was TMA over nine which the outstanding taking generation with at by quarter Any unit future available unit

many to This for been new has Cooper customers. grow by initiatives entered extremely greater retail increasing these to with but Cooper presence want to into expand well. existing a Not effort points retailers, have business making available continue relationships our shop our include tires. a at of able only also going is where consumers reminder, we retail As number and products with

retailers in a tire available are top retail direct efforts. tires of Cooper our result previously, stated the all expansion As U.S., five the in of

Additionally, platforms. on we e-commerce have strong seen growth

and our to to find are to easier products, with demand our continue will consumers access provide ways We increasingly which value to in compelling brands proposition. due

and venture restrictions joint goal and initiative plant caused the travel capabilities, manufacturing up recent to better our partner that right Another coronavirus, We are to pleased facility. footprint [XX:XX:XX] our is delays right leverage upgrading the Vietnam. low And joint of in right Mexico both. facilities. our to in technology plant these have a full locations a the tire with competitive caused evaluating have global facility some at with there capacity Mexico two launched out production take with Asia, bought cost in in the radial including cost we temporary by key But in in Disruptions ownership structure. truck plant strategic Asia ramp the the bus of progress with at closures and a and government-mandated the venture we

to we down because During levels the closed below for in due us inventories and producing higher weeks the of third draw we meet quarter, plants seasonal demand. at for seasonal the time were strong have employees. We required normal a Cooper inventory several tires to safeguard normally not safety to very to when would demand coronavirus health our temporarily our to been tires rebound building

term, volume we others, strong constrained and fall short our demand see. As to be a move demand we expect supply to continue meet of demand we we short, increased But fourth be engine will will to nearer constrained. the by unit created a performance this forward. result that these that have will the of factors continue quarter to product as availability in In strengthen

footprint our our on will of take will move ahead the Of Jerry course, share turn call. our I and to full we now we of the more and continue quarter information production call will outlook as end a the at advantage to and of detailed Jerry. capabilities global review over leverage for

Jerry Bialek

you, Thank [XX:XX:XX] Brad.

four eight fifty percent five seven was dollars million look at results were six up million third and price dollars driven sixty Let's index XXXX. a dollars, on of basis. by hundred Sales This and million seven a quarter profit million increase dollars sales twenty consolidated take of our favorable hundred of two for of in higher one five unit from impact. four of profit dollars two and XXXX XX. operating million point compared point currency in our fifty point was Operating seven hundred percent five foreign million two dollars, of seventy volume sales, three percent and dollars million or with favorable

Third page impacted summarized quarter slide operating was two the which factors, supplemental profit six thousand nineteen the are compared with by deck. on following of

and raw partially of higher Thirty favorable of unit expenses dollars dollars volume, two higher million million costs. dollars a price million dollars dollars costs higher by two eight and five dollars million and of cost. five million manufacturing favorable material of one of lower were offset million these other mix Forty

from a This, case The third in the in in third lower quarter XXXX benefit quarter included an four million company's dollars. activity activity product of nine with liability to of in fees, related costs product dollar. including and product benefit liability similar of the operating legal million profits in adjustment dollar reserves. the normal XXXX a review of forty XX and million resulted resulted expenses together liability quarter, the current A each

and annual we of dollars compared for net product ongoing of in million XXXX. five product year million our liability an Moving third quarter the expect of expense expense lower per dollars [XX:XX:XX] forward, reduction historical per around cents liability Forty third a cents XXXX. share, diluted two excluding earnings forty the annual compared two run quarter in earnings rate, our these Diluted fifty eight adjustments. per to to dollars of share were

nine percent currency to volume moving six million favorable price fifty to up nine impact of million and on by in for a segment. hundred Unit of dollars up America's sales third six offset was with same dollars, a higher operations slightly dollars as partially hundred which compared result foreign from segment Now, sixty our six point mix and of volume, one quarter starting fire were dollars segment, the two period unfavorable performance, with million and unit year dollars million two the ago. of and million XXXX

unit are decline up US volume Latin Our members. period, performance. In US conditions nine due point USDA we percent one a decreased two Mexico unit by nine total the as volume light industry plant levels percent vehicle production setting to point by ramp the for impacted US by unit total lower by increased market industry one and by challenging eight America, volumes were percent positively our the increased in and volume

forty and operating three million percent sales One profit raw nine million were The six three higher lower point dollars also Americas six point net dollars of and the included time record liability manufacturing million nine increased by the segment Even of of eleven million all dollars sales, twenty million included mix. percent the unfavorable benefit operating forty for XX hundred the or four partially dollars, million Third offset dollars million profit to thirty with adjustment, product These costs. other of [XX:XX:XX] in operating Americas in expenses. million of any higher quarter six thirty quarter. sixty favorable expense. and profit from dollars costs of price one material quarter of compared in and favorable dollar dollars dollars net after or XXXX, one seventy million an liability this eight in excluding was product

dollars international This were impact, and seven by volume partially up from net favorable the which of unit currency five by four the result for offset and point million and quarter increased higher driven unit of of percent. one sales forty our unfavorable of point one price dollars was quarter ten terror operations, XXXX. dollars, million dollars Now, Segment two mix. million third turning million to volume percent seven XX hundred were foreign

to manufacturing dollars loss of costs, lower expenses. quarter one of million volume our in fees other of million three dollars of mix compared dollars lower million dollars by profit nine million operating of material, million and million one one unit These raw operations XX. dollars million quarter price third and XXXX of were higher partially lower offset operating was and dollars of five an costs. included dollars favorable dollars nine The million higher international The in one

second slightly a Moving of point seven over down our raw Index in the to six in line point on one to five the index a significantly and expectation or one point The raw be from four year quarter in XXXX two sequentially one percent basis. Material the XXXX. thirty to quarter point and sequential eight to [XX:XX:XX] Raw with basis thirteen decreased quarter from of one material This on third down thirty year hundred XXXX. percent materials of third was decreased

forward have global this in precisely cautious period during the the to quarter, material and be a down on our index expect As Raw raw a we to ability basis modestly increase from to begun our basis. year market pandemic. material prices low of modestly of on We about costs raw year over remain we sequential material to fourth look peak the the level up forecast volatility.

approximately The the same Now effective tax among compared for The effective items. one primarily twenty for of favorable at The corporate expect million third was we tax XXXX, various to retirement by This be four of as rate the period three on the rate available with million impact dollars versus in the XXXX due nine effective result quarter five that the jurisdictions filed for our of of company a two XXst, on be The the the of to the full year tax third driven point our discrete quarter jurisdictions. expenses in operates, with December and based of returns for rate, our the the will and third tax FCC post included prior Other items point rate still annual decreased XXXX rates rate is funding Form mix dollars tax for which point percent. primarily detail twenty tax some six [XX:XX:XX] taxes the earnings planned later company's forecasted year. today. pension quarter on percent was more earnings percent, asset. different the favorably twenty rate That zero tax year. benefit prior position will was tax of XX. XXXX the improved

third ninety capital invested on high point At to trailing twenty Cooper percent sheet the dollars year four one in our flows of Return cash were a in end quarter, dollars, XXXX. We to the third between compared cash seven of and XXXX expenditures four and the compared expect and six four quarters. same fifty year end and some cash dollars. ten had end the million period the million and capital million of equivalents, hundred third and range the hundred the and dollars million was of million sixty with quarter hundred forty dollars one the to for be at in one balance still capital Turning highlights, expenditures hundred ago. quarter around two thirty unrestricted full

and dollars during in quarter. drew significant forty With on facilities call the capital facility balance two You on credit repaid for credit a improvement operating seventy hundred results, to will recall revolving the hundred as quarter strong spending. to the the outlook. and down company its back company third revolving that The two and reduce that, over cash was no outstanding. our first driven now million during turn million remaining has Brad as primarily actions discretionary expenditures and I'll working our updated well by The

Brad Hughes

[XX:XX:XX] Jerry. Thanks,

for levels in noted plant temporary we below strong our press coronavirus driven with a products, our shutdowns normal. As to combined inventory demand release, related our has

the million in move into will for for to our will that stated target lower strength product the inventory. tires mid-term XXXX the from fourth second the modestly are our affect the percent of our fourth hard We to half of even production XX for unit model quarter second performance half XX meet quarter. Still, to global an our forty benefit expect the with adjustment help ability demand we in due compared reserve in to third of This we increase nine expect achieve to XXXX, result global as third nineteen. quarter within operating Yet the margin profit we the quarter. demand liability excluding working twenty volume limited our to to of dollar meet

value that brand the uncertain proposition in especially times. to strongly resonates consumers, with our Cooper these believe in continue We

brand, initiatives are of our opportunities. strategic and relevance additional Our growth customers the consumers with unlocking creating

achieve goals. With on Operator, long take you let's path are We please? and first the the to our will our right to to continue our your strategic that, question, team term initiatives move will drive questions.


you. Thank [XX:XX:XX]

press then the begin on to star, answer one a touchtone now question, will ask may phone. We your and session question you

handset roster. withdraw And If Capital KeyBanc the first Press ahead. you're this a using our with James star Markets. speakerphone, pause before will to Picariello to pressing up at to please come momentarily Please then please. your question, keys we'll pick time, assemble our from go your question

James Picariello

you this [XX:XX:XX] quarter Can almost point talk a morning, eight is On attributed revenue, Hey, mix, fantastic the by consolidated much guys. an here. good benefit all driven the about price to of quarters How Americans. other to opposed Are quarter? front? to the fourth by increases saw the formal positive suppliers in And two. pricing through a put follow announcement mix one We the on as price? industry tier you seeing from

far tougher if as a on you made have Just wondering ones definitive move see. pricing, can as

Brad Hughes

the anticipated in we've been little And activity suggest activity subsequent But mix to activity. on. of or top benefit think Well, has that mix, that a meet to seeing [XX:XX:XX] we're and the we've James, that momentum really to to been with spring pricing majority that we're what's the the capability We did with seeing going production price the that of that would happen. took seen, our continue of up suggesting, we're that's quarter, is But mix, the results spring along as for we equation, Build to actions And from we with advantage to regard and so related I true industry for some regard pleased going price demand on. in that there the acknowledging pricing that. the back bit we, the the of mean, of as the I to to on the what benefits us. with you the the have side on pleased industry, is thank on on going we. our and

the and is ours on both between so balance mix. reasonable a the And price

James Picariello

then in And us your OK. to today by it. assume, the this quarter do obviously Got shortage, inventory outperformed, fourth you have I mean, expect nine you to quarter. to problem underperform it's points due good you [XX:XX:XX] a

that, back fourth inventory Just know, at many levels. get are you you wondering, of quarter, to capacity in lines, And your know, manufacturing you there. running going mean, these should for your your what of the go you I to thoughts have benefit you're know, you assuming all lines full some

Brad Hughes

[XX:XX:XX] Yeah.

without and levels are knowing very So is to we have of do, right we now. ultimate low what I to exactly going the inventory going

we production there. We as footprint we going full to to possible. meet be came with, is into fourth sure provide and quarter But now, have. we make that up exceed supply that based likely much of the inventory can enough global we're we're that are out level with the ramping on see demand we right advantage of what just the behind USG demand our to taking product that's as think of meet going to And we because we the made can't the

build right it's continuing good thing. it's And not clearly you So is particularly capabilities, now. from it's availability is standpoint. a It's we're a of terms production the to global It facility. production the with our production demand better that and in news a issue. to a coming a situation up and ramp this Mexico that, we're at inventory But know, response up our

And to be in may I we to build inventories start to fourth not quarter, in in that think think position begin so we're going a I a on. the but

as direction to early of that part we next in Moving year. get the

the overall, be we're expectation have now, a But that for bit. the we news constrained little continue. going is the to So demand for to great and

James Picariello

rest [XX:XX:XX] my That's But I'll of again. James. questions offline. take Congrats the


will Please go next Rod [XX:XX:XX] Lache Our Research. come Wolfe from ahead. question with

Rod Lache

just maybe on what with color happening can is respect sell Good you to us give channel some morning, actually with out. [XX:XX:XX] was discussions I the everybody. hoping your from

was this over been of obviously, there months. course And, inventory that what are is pretty But know, in of it's are you driven constraints covid lot at has you low. get the depletion just the supply able of you because end past and to clear the a sense couple Miles a happening really that point? shutdowns, and So of of markets

Brad Hughes

think than anticipated. [XX:XX:XX] probably overall, it's I mean, with that covid industry remains and Rob, the think that like I stronger relatively it that strong. that, Well, an I as on circumstances we the given

demand an think third see continued that the from we the I bit second channels started tight a know, into that's And activity and that what level, the you we as that quarter are catch at quarter still can on reasonable with in on I are suggests think the on industry even sellout to little pretty there as manufacturers inventory. beginning is up side.

that, industry Sello. sharper the of and outperformance Now, given little know, our Today in reasonably bit we're USA But, beyond right see industry, feel actually the with you to regard we a on, what now. we about good situation

Rod Lache

[XX:XX:XX] hoping probably you've of the a performance, things. was and just different are there your Interesting, of if of analyzed I also kind drivers number

at You've of channels. least unusual lot some were Do down part contributed? the of independents was share. there and while shut had for much new about talking distribution you a of with been there of circumstances being taking the merchants I that mass think also large quarter? have a that a sense market how And some

maybe that is that for and you there that something that's is that aberrational you? So is or this feel more would sustainable reverse is something

Brad Hughes

really we this sustainable it's right. and volume So at we the where from, [XX:XX:XX] look it's is when that, clearly think the board, across coming

perspective our been the on. teams frankly, different those with with all really a also whether as hearing positioned our through know, it's channels that But on. buy better working we're to out programs to and where proposition, is retailers, our through consumers in you our for, and the So price customers points. know, demand. performance channels to well want so value of larger see some contribute And our retail that that retailers our have retail work our different again, to we're they from on, offers, that and now. program partners types traditional and things And brand distributor our You right Cooper with have and begin the that's really distribution tire to national hard doing customers particular teams want we've product been tires mass our traditional are expand or we really starting [XX:XX:XX] be with to from where to positioned of

feel good think it's really sustainable. we're we So and about we what seeing

Rod Lache

that. for [XX:XX:XX] Terrific. Thanks


come with [XX:XX:XX] go Jordan Our Jefferies. Bret question will ahead. next from Please

Bret Jordan

good morning, [XX:XX:XX] guys. Hey,

Brad Hughes

[XX:XX:XX] Morning, Brett.

Bret Jordan

availability think the board? fires you the and As look at the tightness, as inventory its [XX:XX:XX] in we price the do about of relative across balance how year the maybe increases

Brad Hughes

prices our certainly what Well, but and is consumers we're we'll in make be if influences certainly customers will be with that activity we [XX:XX:XX] I recent up, see for to pricing monitoring some prepared monitor raw the of and we'll sure advantage we'll happening it's continue have to there's a watch. and that there industry to remaining to is on. if around it material if volatility lot see will and competitive there's how that and take that mean, activity. And that and

our want to that our was with are primary competitively at position going We playing need how always I that. we're we well the objective is and be we're to on now, right that the with the good offer, in to we're staying consumers but which ready, where know, we you to proposition a just in do value alluding ensure like and to that, feel make that's for to, marketplace customers sure

Bret Jordan

guess growth then a expansion your from I did customers comment think channel, and up U.S. follow of of the up about the you about the sort new question, unit you bucket, and last [XX:XX:XX] growth over distribution legacy on Ok, a year. follow you the customers and the versus got year unit because

Brad Hughes

we're not other that than the indicate it it's Yeah, [XX:XX:XX] across it was dimension board. going to to

E-commerce merchants. growth traditional seeing we distributor we're more the you know, seeing in including And all the every from whether on are it quarter. national increases in really you of contributing those, know, our is, big retailers, channels. be mass So, our

and us important balance the that we've with is continue sustain it. demand this engine on created because positions to it So to

Bret Jordan

[XX:XX:XX] Great thank you.


Brinkman Ryan [XX:XX:XX] with come question Please Our will ahead. JPMorgan. from next go

Ryan Brinkman

thanks for my Hi, taking question. [XX:XX:XX]

the replenish know, This the means or will constrain know, and inventories supply demand the last think, beyond whole? temporarily for beyond? Does like, constrain, pricing You your are for you QX? look picture discussed there catch year in do next for you first think you we Q the you for in then of ability that for Should looks of also, that shipments. tailwind that your like ability one? industry be terms you and you've What being up, period? would You Cooper your and you kind industry your for, about lower. to know, it a own know, a balance you think though, than inventory of for as the half in you is of what to, what inventories to for tires demand ordinarily back know, do the generally And ship retail know, tires more by indicated dissipate know,

Brad Hughes

to on, question the tight. I an are would So first that know, industry, on we [XX:XX:XX] the suggest based say, information you levels inventory as that

where again, pockets terms of I up a be bit not true. they an of trying demand the And certain meet ramp to is side we're tight. great. may think are that I little we the which remain that is that But overall think continue occurring, equation. ahead and be is demand of that There to in to that's that tight they assessment all

you've to got say not You is for position know, school, used demand, when that to supply that that they I pricing. go that if more a then went to bad

continue to we'll monitor. So

raw with happening what's as and monitor on to an continue will industry industry. materials the think I

to if in affect this how right position a round the on suggest of to the us. disciplined to remarkable You think with it's for fourth now all know, me from happens, know, in and be decade corner You to to the the that side going warranted I've production and a probably with and do in seems on I again, that When our that that costs a there low to now [XX:XX:XX] inventories that quarter. response regard been the industry's pricing would to begin supply. we're it's approaches

Mexico ramping You We've that facility Cooper mandated up a over making in it shutdowns ramping know, production the we've up. and gotten facility. are truly two and been

in been frankly, that on of in And own Now can we we percent bulbs demand. we're help to our that, as facilities, U.S. leveraging we've adding XXX as up quickly ramping meet global footprint. the

announced we're our know, Serbia You we facility. that expanding

So through ensure positioning as possible. looking to as products able ramp to our up globally at in be a we're network way that going we're to quickly

forward So on demand inventory that And dependent fast I that positioned better at be I to we'll the next relative and we that'll to fourth be continues corner the next going side little of take beginning year. that with to may a beginning move you But equation. to begin think that the think production. while. we'll the corner on know of will turning the into in quarter start inventory the of year. be it how turn But And

Ryan Brinkman

materials spread. to thanks. kind price to raw great, Ok, [XX:XX:XX] you of ask unpack the And I was mix, going sort of to next

positive remains couple but think to regards positive, already How third but find quarters? there spread. quarters. materials, a a to but result of a maybe mix think quarter raw comments on and pricing, less then positive increasingly mean, we to I it next romance, is to back continued should at just for least number what go If about of had to contribution tailwind over And to grows a of mix, made a relative with You've as do XXXX as imagine the you big that? few big

Brad Hughes

sequentially, that [XX:XX:XX] you that on quarter know, up that year still side Yes, the I down for over you with, see what of fourth year is on the now. on but based our our the would right started be expectation guidance is raw equation can material we

sure or below is bit think tailwind materials. they any on then our make of that And do don't see focus we're that the that there a is know, And, to sure raw that competitors you our yet. you at there. And we teams availability of prices availability. so, on want around around a We buying know, issues always buying making our are

to you mix. think to position and try done to do a job protect they've there. And with so, our And they're good regard continuing know, I things on

move for are You still to on that, there quarters we us to you quarter. to we continue they know, opportunities still know, several still think But we over, you opportunities know, have advance. quarter next the

may it you we longer you that but not know, every on as time, on a well. when in be period runway there's and think continuum more Next, mix a quarter, it look of over at

Ryan Brinkman

change regulatory, Ok, from could relative me, [XX:XX:XX] change presidential number not administration's Then of potential changes, to lastly, etc.. the U.S., election know, here, the tax, any thanks. you great, a just the it be and or in

us seeing international there? to that case, with of, sort Just have with the have thought know, know, which to know, the been remind you there's Southeast and or as already is now possible on just trade rests And change, of though. a really were that tariffs members you're some you there that latest decided, court Can case of could no so tariffs, right from regard know, Or you the court, the then, it how the impact influence you composition ask on if you you on, including Asia? tariffs, the this know, does administration others rule?

Brad Hughes

antidumping making be the certainly. we're members had year of of in been three changes know, historically Taiwan near the will historically next I a that a of first pieces enough and impact which not of we know, the But or on then by the question is that say tomorrow. or That That not I'm as on That four get out coming what be it lot there's as that of And not be of could to ruling rulings round I'm changes But, preliminary to all as Vietnam, that term, countries Asian the to other Vietnam, plus the to here. there. around say countries there, who expecting the changes [XX:XX:XX] I I have significant it something is you on coming I near would that. away, administration And end has Thailand, duty right duty in that one term early decision the Korea very smart in countervailing applies include is Yeah, a the the there's knows? early know portion suggest. body. on would going that you on to mean, year,

Ryan Brinkman

you. Okay. Thank Very [XX:XX:XX] helpful.


then have Research. one, go [XX:XX:XX] come question, Again, you Healy John question will ahead. please Northcoast a with next from our star, press if Please

John Healy

wrong, you. out, Thank any outlook the QX. operating wanted profit My level saying guys Do about ask fall half, range is reason mid of if liability could low that just that be margin outside me the XX implies guys. a adjustment of for digits great teen I math that's Congrats to but in But quarter, XX second high on to But for kind case. your to I single XX QX. to implies there product back to often you the the [XX:XX:XX] for you kind digits. double QX? XX And the of in you like are think.

Brad Hughes

that And of during replenish XX the business the occurred, we and quarters appropriate, thought to going it this we and look be to fourth safety that We would put half instance, was was strength [XX:XX:XX] third ramp we with generally begin, know, and when really much in able have up appropriate on going the on quarter, of given, where our weren't and think right we and the is that to inventory on additional to perspective demand which Well, we've more the inventory that shutdowns thought the second at how for with still that's to positions the now are understand, you that John, in it now. from right appropriate ramp people how the in in the health the as just given stick where given of you able feel seasonality how a picture we're the spread very it to to up into of know, we reach look on, just we at and half, the of indicative those business business to percent that's demand is get been look that you trending at XX to really And at had space indicate we had because from But subsequently year. we're more again able the to second indicator meeting now. or going. engine to good the But second basis. because be I'm will going time perspective I'm were about guidance best equation it again, over third side a as to considerations think we on now because to a able clearer sellout on. third the some the during on that quarter performing the right build back next the I we're range that's the

John Healy

down the that the [XX:XX:XX] wanted hey, and meaningfully, you up saw how to was that We're in USA kind trying ahead And know, a pull ask in industry largely the get some the a tariffs, you legacy more do production quarter? or imports you statistics to manufacturers? being of QX think of maybe with domestic being big that standpoint. of that in imports, Today but forward know, of that, How with of, interpret do struggling reflective you we imports interpreted the just was pickup I you

Brad Hughes

industry, person's you view. it. we as America, Yeah, both. we do as an that think I returned of particularly combination to John. to look able than one mean, production But in again, suggest more at demand that tire one, were would a [XX:XX:XX] I Number ramp North meet I we I up our quickly that, know,

so And alternatives looking to consumer meet would people be for demand.

units you look about that the get try import way sold total on. there in to this represents when occur. are I tariffs it we've United So to But Asian those percent on XX I some of and but mean, I think the before, of States. many taking that clearly at think that an four countries, place that the mean, would are be going impact anticipating activity said I that were ahead are

market. so a piece big of the And it's

I so of that to are bit and to And they little would extent that wholesalers expect get a can. know, going that, and you the ahead distributors try

for the that, growth know, industry we think build sustainable be you news might some know, I on is us in environment the there stock see know, where that even You real, demand. our good you of were and still with ahead

John Healy

Great. you, [XX:XX:XX] guys. Thank


turn This closing like Brad our any sir. answer back Please Hughes question would session. remarks. to ahead, over for [XX:XX:XX] concludes the conference I and go to

Brad Hughes

our globe, drive hold just and and Cooper contribute [XX:XX:XX] I efforts and support along want their thank taking the to their to delivering reiterate you the strategy for families now. suppliers, with winning right ongoing that's to towards our you our team and together this Yes, customers coming thank a for around the to to great result

stay for safe healthy. please you. So And participating today. you Thank all stay thanks to and of


conference has The today's concluded. attending you now now may [XX:XX:XX] for Thank presentation, you disconnect.