SRI - Earnings call transcript Q1 2021

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Operator

Good day and thank you for standing by. Welcome to the Stoneridge First Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. After speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your first speaker today, Ms. Investor of Director Harvey, Relations. Kelly Please go ahead.

Kelly Harvey

and everyone. discuss our morning, presentation in filed yesterday the And at under our release thank to us was evening SEC the & joining Investors for with posted first stoneridge.com accompanying on website you and Good is Webcasts quarter Presentations. section The results.

me today's call Financial and and Officer; Executive our on are Chief President Joining Bob Officer. Chief Jon DeGaynor, Krakowiak, our

be may statements. Before that I certain we need you today begin, inform to statements forward-looking

statements our plans. historical information Forward-looking that nature in not include are future statements and include concerning or results

Although are are you subject assumptions, that materially. actual we statements and should risks differ believe and uncertainties, such based upon to these results statements understand that may reasonable

could be filed under differ results Additional information cause Exchange Securities Statements. about actual found has been our such may XX-Q, with which the heading Forward-Looking Commission and that to the factors in uncertainties and

be keep the of will finished question financial follow-up. we to their and will non-GAAP referring Bob After will certain today's Jon financial non-GAAP have comparable these for During appendix most GAAP measures then to please questions. measures. also call, I directly a to the open see to we Jon. turn a I would the ask formal call With Please that you the that, measures. call single you up remarks, to your reconciliation over

Jon DeGaynor

good morning, congratulations and to the call new everyone. Kelly, on and Welcome Thanks, job. this

and strong on exceeding perspective. the supply COVID-XX previously begin subsequent financial Page the pandemic quarter, through global delivered both expectations challenges disruptions. from our me Let the navigate In performance, We revenue outlined chain continue from earnings first we X. presented to and

an that our million an million sales approximately adjusted adjusted to operating previous also X.X%. resulted we EPS of on controlling previously was outlined we of to variables continue of for a the externalities. quarter of adjusted and in quarter impact limiting and our focus Adjusted Most XX.X%, the of quarter. exceeded importantly, exceeded translating margin first margin Our $X.XX, of expectations $XXX.X could which expectations control the breakeven gross $XXX

During business. that the an the sensor yet our quarter, and agreement of This another soot we growth. continued transformation technology entering allow future complete Company resources is into the us our to platforms transaction to will of the will exit on that focus drive divest the

install our of We by MirrorEye and demonstrated and that Maverick OEM make their platform, XXX% later for announcements to fleets, public with our trucks launches continue progress on in our going new preparing to two retrofit MirrorEye programs recent expanding forward. XXXX intend Montgomery, as

morning, this and that their we information Additionally, I'm launch is of supporting trucks the of with heavy- proud partnership to digital are and PACCAR medium-duty system. the launch announce our fully our expanding driver with new

to we year reflect our guidance morning, discuss in more this later detail we will macroeconomic adjusted that factors Finally, in full certain the call.

prior all our the Page production key outperform despite our maintaining outperformance divested business to due guidance quarters, and portfolio to headwinds primarily are X periods. revenue We the that expectation excluding financial metrics first sensor revenue quarter product continue the soot market. our the summarizes relative in will to in

During continued in in we markets. some volumes our vehicle passenger see the volatility quarter, production end to

quarter of markets X.X% in an were fourth performance our resulted X.X% revenue This by to and than of relative more in commercial favorable year. prior of the end headwinds these offset impact versus However, currency. the XXXX strong vehicle the foreign adjusted and growth

quarter to challenges, to continued the which margin navigate contributed During points, global adjusted related margin the XXX of the relative XXX and first XXXX. supply of quarter, basis we declines and chain operating fourth to gross and pandemic respectively,

that points. guidance to costs this It incremental is by some reduced performance have we our the will costs color gross to deteriorated dynamics that $X since page. These margin of million next relative call on supply call. temporary on provide on $X.X the included supply I basis and above on note the operating our externalities gave additional issues. operating quarter first had approximately specifically fourth as XXX The impact related chain is million chain quarter important that these

first the expenses prior consistent of remained with which trend During our operating we remainder the continue for year. expectations, expect to quarter, a the

level the to external controllable that costs. continue additional execute expect facilities we a will and our we While the of headwinds also at remainder related factors expect for high to year, limit

more the our that these the one and and year. fourth U.S. X. of disruptions of we to supply the at Slide provide Suez the There have chain the during a quarter turbulence creating tightened shortages events have last disruption that the In material challenging. to freeze specific components, manufacturers current discussed occurred impact since our detailed I'd been become Southern supply incrementally including additional Japan, on and our for like of summary, in at supply in call disruptions update impacting have the the more business the Turning financial several a view the disruptions key Canal. of of supply chain a fire call semiconductor largest remainder chain

inflation largest shortages offset we these committed our price costs. power everything accelerate. To rising addition, are prices is and commodity to has work areas doing shortages, combat continued among In in -- increases Semiconductors, to impacted resin accelerate copper the the to and to incremental costs. to are and continuing and due to

these recovery. return to incremental markets We cover our suppliers, regarding impacts normalized our are these with negotiating state developing when costs with a strategies more and working to cost actively are customers

has our call, quarter exposures, schedules first the the on production OEM As on far in discussed on limited. impact primary reduced our our revenue been overall Based so quarter. fourth platform passenger customers several of car our

end not the the are seeing same we we up continue production is in have not commercial Forecasted markets, that able which levels of remains in expect to be type commercial XXXX, on expect a we schedules of to the in we be the do not detail all balance do discuss for and later business impact reduced expect trend That will our made our of not for Similarly, XXXX. adjust started revenue significant to a in in reduced and expectation call. production will year. vehicle further strong, vehicle that this the said, schedules off-highway which

expect we revenue While not costs expect the costs a impact, as of current result we and do freight significant expediting premium incremental increased market conditions. material a and

from cost. of be to date, already incurred full year. have expect we we $X for those of To $X.X our costs the the updated we While costs year million full incremental to to million have these approximately for expectations $X.X million incremental $X.X million temporary,

just in costs second million the up in and million to costs the additional half an additional of over second quarter year. expect $X.X the $X of We of incremental

supply the impact to we chain OEM global respond We continue to ensure on efficiently and effectively monitor customers and our disruptions. to the any

information Slide for production and well outlines expectations, of through recent the fourth LMC the end As it markets current most relates the our XXXX as year. quarters X to IHS for OEM volume as for second

that of XXXX forecasted end revenue further in primarily the supply the have forecasts are market. markets remained chain result in car to for maintaining call. previously our full declined, a forecasts year improved. to relative revenue approximately global portfolio our we or results of will in the our a provide disruptions, relatively in weighted X% while This have first our detail quarter decline outperform outperformance average continue passenger our guidance our this the As due stable product the Bob the decline, to provided commercial guidance expectation on guidance. will Despite later and vehicle

we performance supply still our strategic business in result a continue summary, remain execute In our to health things to remain the our to profitable it two performance and the on and X. will the later we the and as challenging Turning global face well cascading impact retrofit committed At Page prewire We a to delivering respond this effectively financial efficiently to that ability quarter many We environment. program demonstrates on chains. the the of control as first had we continuously challenges strong execute opportunities on global improving as long-term our and stable year. our priorities first has MirrorEye crisis and growth. on OEM Stoneridge, to can launches and drive despite focused

focus driving deliver shareholder and to results With turn more in our value. that, it to our I'll improvement maintain detail. continuous capabilities We over our refining strategy, will long-term our financial Bob on to discuss

Bob Krakowiak

Jon. Thanks,

product will our Turning negatively an X. million, decrease by the provide and impacting excluding Adjusted quarter, and sales, to increase of segment margin $X Slide performance is of divested primarily the adjusted approximately which or was for a prior $XXX in XXXX a The million basis to basis lines, to detail divested sales points. first each points XXX discussion versus operating subsequent XXX product was I quarter. price excluding on of approximately in segment income, prior commodity on were relative supply quarter. Adjusted outlook X.X% X.X% margin slides. brief operating headwinds performance the reduction additional chain on the due lines,

with first the Jon we approximately continue based product market. and the will expectation by $XXX our million headwinds the as that revenue IHS quarter will to expect midpoint as forecasts portfolio outperform As as we LMC guidance full maintaining production well a in are the our discussed be year offset of performance earlier on for our call, that current

million an due to the adjusted increased costs chain-related primarily the primarily Control summarizes China XX the adjusted to to Control of sales $XX divested basis pandemic. quarter EPS material, driven our in $X.XX, due by decreased to we sensor the versus operating Additionally, Adjusted from global business, of XXXX income, first $X.XX are of excluding lower income externalities and our later with increased compared key to by supply increase operating year the to business, excluding Devices. points this for drivers for COVID-XX million, detail XXXX primarily income specific sales. QX and more year. the engineering related first midpoint XXXX, primarily full end Adjusted these adjusted the due expediting metrics, divested resulting to due XX costs. product the higher margin line unfavorable Adjusted overhead basis $XX.X fourth in of discuss in financial to will sales quarter temporary increased call. pandemic. adjusted the Page Adjusted due versus XXXX, the issues gross X.X% mix quarter was which offsetting Devices QX XX.X% morning, fixed was XXX in I or quarter XXXX were global to soot sales. due leverage remainder sales, labor to points by shutdowns approximately the reducing the operating the our guidance markets a of by in

XXXX, of transform we soot earlier future quarter with footprint to in and the call, we product this to growth sensor the and complete our continue end transition divested the of the expect opportunities. the by business As and In align to manufacturing portfolio sales year. discussed first exit

revenue continued expect for performance, of Devices expect to we challenges strong Control supply chain impact While the also continued year. the we balance

as approximately our to metrics working increase specific the approximately continue $X first to to we due customers currency key our drive Electronics. are cost launches of by program offset as expected versus well in advanced margin an rates. $XX decrease as engineering income development to mix issues, million, quarter million for increases X.X% and on the summarizes sales by of favorable of basis product off-highway suppliers expand costs higher focus to structure material fourth financial on revenue program as XX result prior exchange existing XXXX, points as of higher XXX was foreign vehicle margin unfavorable costs chain supply market primarily improvement primarily well price were a fourth with we quarter outlined cost Adjusted XXXX, have which end as driven to a Electronics headwinds growth. commodity to as quarter decreased We and our the sales and our with those continued relative related of calls. operating Page segment and incremental leveraging

and well including as OEM in growth half programs, increased our our to to demand the this continue revenue launch of XXXX and first in program several large year. of ramp-up vehicle in off-highway end expect commercial as strong MirrorEye markets the We second due

XX% growth market Electronics in mix car the operating for are sales vehicle year. approximately from sales While as XXXX result and rates. income chain-related resources. million passenger first markets, macroeconomic end in product and quarter as market the the our necessary unfavorable That XX mix the to key decreased investments of a in despite strengthening exchange headwind to improve Stoneridge or conditions we to as are Stoneridge weakening the Brazil's specific Brazil. product pandemic commercial is revenue expected in engineering quarter Brazil financial Page resulting of shift a the relative segment cost summarizes challenging expected primarily $X.X supply of by from remainder said, forecasting headwinds, foreign continued unfavorable a with fourth metrics to the to well

During points relative XXXX to material flat improved challenges chain the costs. due gross to XXXX from expect operating lower of quarter basis by by $XXX,XXX revenue despite offset compared Adjusted to year. fourth global lower in points. by the negatively reduced margin material leverage operating by primarily in remain we approximately lower SG&A Brazil, margin to basis quarter direct macroeconomic and Despite last XXX XXX impacting to fourth continued quarter, relative disruption headwinds sales, adjusted gross due supply costs income the declined to margin

engineering agreement business local utilize per headwinds. On sensor remain historical assets Standard call, $X.XX. sell commercial focused support our resources the XXXX. ramp-up share to our of into summarizes we We guidance and In quarter OEM earnings ongoing for production. offset our will year March $X.XX Page soot business an Motor entered economic with XXXX, year on we updated global full to of and Electronics continue of fourth to Products EPS adjusted adjusted vehicle XX to to guidance the our full provided local

to commercial SMP assets. a vehicle for agreement of physical transition the and transition the through the the support service will contract products We manufacturing through agreement

the sold our and We manufacturing of end conclude negotiated this SMP to car expect to will line which be obligations, manufacturing will product we of by passenger assets at for include -- to retain the the product end the year.

We be transition all XXXX. assets complete end expect of the to by the of

as have our impact to net XXXX product sensor that margin adjusted XXXX will in down XXXX. divestiture line lines guidance the car gross lower exit business. a the vehicle the remaining product in commercial business remain passenger than overall we We significantly soot and of the divested exclude company. product The line of results results include and The reported our guidance, will have the ramp

expectations As a increased we incremental this car products, for the as of obligation as to product with revenue production related line to result for line the divested the line impact year. approximately this revenue EPS production net remaining business -- We not of margin the and lines contribution in expect our adjusted the impact historical for of the this remainder meet XX%. for remainder do significantly passenger acceleration product of year product expect the in well of to or

previous quarter first the contributed outperformance expectation EPS previously, quarter. discussed adjusted As $X.XX of the versus for breakeven

$X.XX expecting the the year to of product $X.XX are expectations. remainder We year prior relative of unfavorable to mix for

but is share for detail headwinds year As the year. earlier and $X.XX. of are expecting remainder impact continued incremental negatively call, to discussed the $X.XX this temporary Currently, to we supply chain forecasted in per earnings the in adjusted full by

future product growth his current not in in outlined development market Jon we support our positioned investments are As but and we'll to carefully ensure monitor future resources only operating continue to to for launches, comments, we program conditions. for structured expenses our engineering expect and planned but

XXXX foreign remainder forecasts for current our Finally, outlook. to suggest headwind exchange the relative small a prior of

reductions be of revenue As reducing performance slightly lines. to of external our $X.XX bottom a year will quarter adjusted the primarily and midpoint a our as expect result than we we're these in perspective, EPS to forecasts top quarter full second timing a earnings impact guidance first $X.XX. factors, From by and less production

in to balance half of the EPS in X/X year weighted the this in heavily approximately for chain the results impact year. As in of occurring and of year, we full the This costs half. the half temporary first expect more million adjusted discussed the our the incremental second $X towards million call, $X.X earlier supply with back of

million Turning resulting in XX. Net first debt in $XX adjusted debt or Page to increased XX-month X.Xx million of $XX approximately by quarter, EBITDA. the net trailing

seasonality. consistent is the cash performance with during Our quarter flow historical

a level EBITDA debt leverage year. and low by of relatively net than net less Xx to debt capital. positioned our expect with trailing to We to well more return remains significant profile Stoneridge XX-month the end of normalized available this

to Moving macroeconomic the despite XX. continued reiterate the I we during pandemic, pleased the and closing, to our strategic are supply continued decisively I that, significant initiatives. and headwinds Stoneridge call chain challenges. said, That we'll temporary with global Slide up want shareholder of quarter the all macroeconomic to related expect we continue that respond performance as our environment In first to open the evolves. will the value, focus is driving and of to that committed your questions. at to With forefront remains

Operator

Sellers the comes from [Operator Stephens Instructions] George first from line of question Your Inc.

George Sellers

quarter. Congrats on the

to start, they forecast? give previous what versus So just the were and the LMC IHS on in us call. forecast originally the year-over-year updated the change expectations have you you for Could

Bob Krakowiak

be us thanks I'd George. question. for Thanks this that, to Sure, happy and the joining do for morning.

outlook put XXXX impact forecast we the So current go that with through are. current IHS QX five that LMC. the I'll us to the primary respect is the And upon the XXXX together and April what based our projections and markets

car with start North we'll IHS So for passenger America. for

Stoneridge. XX%. IHS XX% now that million. passenger accounts for so an year a North This So And is year's And was XX.X million. over XX.X of for increase of about little year is last car America then XX year last next sales million, for

million. moving pass that year, units. our million Europe. forecast about to current XX.X So year, the is XX.X This Europe, X% was car Last of sales. is

-- pass our last X% let QX me million XX.X sales pass China at going over vehicle, XX.X year, year. units looking North America next up this at then so year, up that And China was X.X%. up and up for year. that's And last then XX.X million year, to X.X%; add for a to million X.X% So assumptions next next car of XX%. and accounts going little year; LMC about the units And the -- million commercial XX.X then

So -- the car. if you China passenger

vehicle. commercial moving So to

For was our XXXX; XXX,XXX X% going units in up to units, XXX,XXX North America, X.X%. so up sales. That units XXX,XXX which to of next is year, that's XX% this about going year;

up is five of XXX,XXX, So our markets XX.X%; XXX,XXX year -- going as for going Western OEM well. about are XX.X% which XXX,XXX, next Europe, those XX.X% up to sales, the last so end year year, to so primary side. was this And units; the on another

George Sellers

update of opportunities a more for on broad been of and where topic. maybe electric then also And helpful. business of an today more what at sort trucking Could you generally. you see lot then risks vehicles backlog? also give a That's us Great. and great. obviously and book autonomous around some That be turning of would There's discussion the the the in you the have Stoneridge to

Jon DeGaynor

Stoneridge question. for thanks -- of -- And XX% XX% the overall, we're of the drivetrain product business our And XXX% our agnostic. to about fairly Electronics drivetrain George, is regularly we agnostic. is portfolio, talk

So transformation look at one with did reasons, whether we of to for have soot, future. specifically to are or why us. as of And car associated for why vehicle from move a internal out we like ourselves that doesn't it's as that vehicle, you a things you look risk material combustion rotation would a combustion position the commercial at portfolio the technology, it's one with internal it pass electric

space and said future a platform look connectivity us this vehicles, to what technologies, vehicle about us their seat so that that, So help a commercial Control the excited on Devices forward. with our provide both to gives move one to standpoint driving opportunity already vehicle that table times commercial From with as technologies and vehicle, believe MirrorEye to reasons puts at as at them work autonomy. and platform as in Electronics, going in automation it pass ultimately it's we're applied. as architecture. automation with are MirrorEye why electrification, both in the completely it regard our of us about is to they're we're developing other autonomy. and And we car with We've many whether autonomous And means -- the MirrorEye gives the vehicle they're and OEs before we excited that or we the an the

Operator

the question CL from Your Stember next comes from of line Scott King.

Scott Stember

you Can you the into the a of of for the $X.XX the balance mix lot costs? like dip. product due give more a this incremental to is that to little $X.XX seems expect granularity that year,

Bob Krakowiak

be the do for Yes. question. Scott, happy to thanks that. I'd

-- if LMC the latest IHS, all, of the at so look and of we electronics. if you look first latest on the product are the forecast in mix remainder you I unfavorable year, some at assumptions expecting the reference forecasts, So for did call

business, and existing the net-net, you -- relatively The commercial now passenger exercise. Stoneridge impacting product If businesses connectivity portfolio the that's and happening OEM, car being car And business from the right the different really aftermarket and you vehicle side, not that of look are our the that the space margin a at with with vision to a to margin. there's really if have there's revenue, -- have really within safety Electronics passenger so higher business the the profiles. commercial but shutdowns been side vehicle on the basically announced what's business, in basically neutral it's been exposure, look shift

Scott Stember

MirrorEye Okay. this. to we put the how a Are original and And of through fleets will we much on us talking during wanting just fleets within -- good through And entire your have also very MirrorEye, that guys time? couple Can come -- aftermarket could revenue through quarter their you the some give talk about about this guidance, how on at obviously, you news are year? prewired? same updated talking you an

Jon DeGaynor

and So decisions the of of we're decisions now fleet are the about that talking all prewired. all right for Scott,

do the a regulations. because we So NTSA and it's trucks retrofit them new prewired, buying then of

order. -- fleet see year isn't make an making value the programs yet OE OE their they're of buy from customers end their one somebody the and until an not -- is making at launch take With OE OE as installation is there there OEs customers support commitments, the where the seeing guidance, change commitments option the -- their directly in equation, can ways So this rate what are But at -- you're fleets. for how revenue in revenue the assumptions. or OE XXXX. will to And efficient. to ultimately, look to our driving driving the our more of is regard there's It's OE in it process no guidance limited our to which some

the said, program we first As year. OE of the at launches the end

Scott Stember

Okay. Got year or it. modeling And purposes, measure the of up about made just you the But for the maybe give way half guys better the lastly, first year. should of could you back of half QX? being comments than QX context how a us versus viewing some

Bob Krakowiak

Yes.

So bit my on I for talked the comments. question. a it little about Scott, thanks

morning, So going on the is they emphasized towards that than what chain more now. disruptions are the the what we're seeing geared you're our going this balance right the of to we've towards be supply comments second during based to year see they're quarter

second of the I majority So and the improvement in But referenced of half we improvement, year. versus quarter. quarter expect see in first that performance going the our little the second bit my to the comments a we're of

Scott Stember

very That's helpful. Okay.

Bob Krakowiak

So basically slightly we'll my comments were in -- see half. the basically, improvement then lower the and QX, basically second

Scott Stember

QX versus Okay. Slightly lower QX?

Bob Krakowiak

correct. That's Yes.

Operator

[Operator Prestopino from the Barrington. Instructions] is of Gary Your question line from next

Gary Prestopino

Stoneridge? breakdown it world of regions the each vehicles Can of as percentage again of to relates you coming give of the that from the me are the

Bob Krakowiak

Sure. Yes.

commercial sales. car America Europe So last And North the X%. our about European passenger so car passenger then for X%. XXXX, of actuals. of of percentage percentage our vehicle is so is vehicle China cars sales passenger XX% year's in is XX.X%, is commercial North the X%. Western And -- is America,

Gary Prestopino

Okay. Yes. All right.

down in released increase XX.X% numbers you and right this looks when have vehicles. in about LMC a it vehicles here, XX% an I and if were So QX passenger like skinnied increase that anticipating IHS to

So vehicles it about looks it's X.X million less like there -- worldwide.

Bob Krakowiak

That's correct, that's Gary. right. Yes,

Gary Prestopino

-- for you're in you that All expenses a going right. you're the on the that lot increases costs in seeing to Okay. see what's now, cost right of what you're markets more increase have starting Do or to offset to And ability doing. price terms these then now? higher

Jon DeGaynor

it's Gary, Jon. So

with working prices. are We with some in both suppliers we're We're drive the to on push to talking working our certainly off situations, And efficiencies. customers. trying many of our

We than situations our other aftermarket we're in are in most -- long-term contracts. under under spaces,

same So offsetting it's are the very pass-through. -- in times, all ways our three looking those these very serve we're not at customers. automatic time, an times, costs specific continue to and at while, special at we're to But looking look at

Bob Krakowiak

would semiconductor to pandemic. manufacturers Gary, and really get understand, result as transitory thing resin -- in important we And just both capacity the where just we're are we tell of being incremental absolutely them point until you, a costs to as one I that that's levels back to the normalized these view manufacturers the nature incurring, the the up the

Gary Prestopino

pricing. calling just what No, answer got but have inflation lot now of of a I think And -- an idea increase I ability my to you do are is there. prognosticators understand to that, I I for going increase, and I want to get

Okay.

think this year? on new range every and are guys of these year. every a terms you give of Do us Montgomery, Maverick In as as you replacements these trucks you add far -- new trucks companies can for what

Jon DeGaynor

Gary, think to for they sorry. advanced about to as trucks many is five-year them can't the on a fleets, cycle. they it question way the how specifically to But -- Scott answer refresh for X- Yes. these their I fleet buy.

get and the you they're fleet by sense size, on how five for four depending buying. divide or a that many So

equation. a that's calls And with It's commitment we've of technology see making the think years. perspective. and every a they're -- XXX% our have value from fleets, They They on the impact. comfortable the what now. been more it are so and board across we saying, saying they're see for a the I and important most the who that driver They So thing been investors more safety day, to going what what recognition it's see and "We're that. is validation couple the we've with means retention of a saying And to happening these this."

Gary Prestopino

get Yes. this their get know to understand. about I'm on so idea margin. an fleet. earlier to because to look websites again, wanted passenger passenger of want you've commercial cars, seeing go to and slowdown it refresh, is helpful. see cars to I shift to just which and -- seen for a you're an electronics, idea the go back and just trying but lastly, to mix then And I Right. you their in electronics. and Bob, of very can has that's -- in question, you're in the a an just production vehicles lower about talked in I I product commercial, doing this product

Bob Krakowiak

me clarify that. Gary, No, let

and electronics. it's portfolio. passenger It's just So passenger vehicle electronics not car overall commercial our portfolio versus car our electronics

fact So -- vehicle if continue about our the side OEMs. to you to outlook impacted about vehicle -- you the have think strong. car OEMs if the for made, commercial announcements on The been run, they've that commercial and mostly remain passenger the continues think very

the overall blends our based the how awarded So based the cars but LMC our that from upon that guide business -- when basically flat, upon that out, forecasts from we just and IHS balanced a remained guide, then mix, revenue And the and we've at move revenue impact. seen the you look commercial that's passenger have, vehicles. to

Gary Prestopino

here. But But product -- Okay. things maybe all in mix I'm an unfavorable right? about not you're again, headwind electronics, I'm confusing talking

Bob Krakowiak

No.

Gary Prestopino

there? So what typically going on is is

Jon DeGaynor

it's Gary, Stoneridge. overall Yes, Jon. It's

So talk business. talking car, vehicle when is largely we're really we business. Commercial the the Devices electronics Control about pass about

markets. based our and Stoneridge what's mix end impacts on it's product that overall So the selling

Bob Krakowiak

-- just it electronics about talking our saying not we referencing we're understand basically When talking segment electronics, specifically. that. we're to about we're when Gary, say electronic broadly we're you sure make that, Yes,

Operator

Sir? closing conference now or Jon for questions no over the the like Mr. would With further queue, any turn additional to in back remarks. I DeGaynor to

Jon DeGaynor

all you for new to continuing I value This and results, respond operating is variables the performance. actions look talking drive and beyond, success financial to management we impact call. and company that committed that and We're our and effectively drive participation of confident forward continued closing, Thank call. can profitable to we our today's focused will control assure your to you for can to efficiently you deployment resources. shareholder and manage strong strong next will team available XXXX through result our continue in In to in that the in business

Operator

for concludes participating. conference you Thank today's This call.

You may disconnect. now

Stoneridge (SRI) 1 May 212021 Q1 Earnings call transcript