everyone. Thanks Kelly and good morning
product availability cost, our This to through three. Turning even supply the continues labor tax chain In challenges. and schedules, material production to impacted navigate and rate. third we quarter, logistics availability, slide mix,
translating margin adjusted negative $X.XX. sales in million resulted to $X.X EPS loss for an quarter of was adjusted of gross third quarter Adjusted million. $XXX an the of operating Our XX.X%,
performance adjusted by quarter. by in third impacted Our was unfavorably in EPS external $X.XX significantly impacted which total, headwinds, approximately the quarter
EPS call, breakeven for third call. performance will I our second review for provide as quarter in prior detailed in called a drivers our adjusted quarter. later expectations, outline performance on more the approximately results quarter Our the the on
During the million increasing second or us able costs the related the in which XX%. quarter, we incurring. costs incremental portion our exceed quarter offset rate to incremental we million able we remained significantly costs the a on supply Despite offset to for Total incremental of quarter, run relative chain incremental almost $XX $X were forward. we offsetting to an costs of are positions going which improved were focused large
continued of platform, we in with as first the MirrorEye in OEM Europe. are to progress During make our the we process quarter, launching our program
forecasts Although the launch suggesting early customers' our of to the in quarterly award. our time we system are take rate rates process, equal the at are take exceeding
customers is from has the end expected, in rates. forecasted As take incremental system resulting extremely on which favorable we the feedback been
XXX In retrofit addition quarter. expand initiate to and Schneider our continued approximately retrofit with our to expanded program the progress with our in notably, to we OEM Most trucks. launches, programs we
In with or American North initiated addition other to fleets. expanded retrofit, four we
market significant see XXXX. retain be in and and fleets the from both creates in technology Feedback for in drivers. vehicles first fleet trials to we America our and opportunities mid program attract as to a as Our North an positive early continues awareness to many critical new launch retrofit OEM it
$XXX million. year-to-date. limited full Primarily due EPS resulting $XXX be million sensor year million revenue we soot divested reduced our based schedules, guidance guidance revenue to $X.XX component and It excludes production availability, Finally, year market that this which has in our morning we to are of full noted should on updated are conditions. contributed in reducing adjusting our guidance business $X.X the to
customer our of a of updated as full $X.XX. the the forecasts such guidance considered reducing will guidance. guidance external to current both basis adjusted call. are orders of year Matt our as for as well our the current on IHS additional LMC later have and drivers detail midpoint in as negative EPS sources Similarly, view We updated our we provide
page four. to Turning
Chief the During XX, announced integral who the our played effective years transformation. appointment Krakowiak other of resigned the quarter, Matt we Matt Horvath and Officer an joining Financial Stoneridge to pursue shaping in five role from ago, as company Bob replacing Since has Treasurer August opportunities.
strategic partner and his close will focus term CFO. and leading and our balance has Matt he across our of all Page acumen growth, perfectly award-winning and available execute the on stakeholders financial sensor business has During periods. continue understating relative our Investor Mat metrics an in quarter's Relations strategy. key and refining will his executing operations and profitable strategic to to we results, with drive ability relationships our developing has of through our objectives the supported with the objectives tenure, and summarizes as be be been sheet efficient effective five the goals, divestitures. to and excluding further his to and a soot long a integral in with as critical financial him a me deployment divested multiple long knowledge term value. our business our of capital product shown the robust strong Matt's portfolio our prior our shareholder both internal have external deep long team next developing business, his on to positioned organization leadership tremendous advance and term his company's advance
market X.X% to quarter-over-quarter. compares During quarter, we driving This the decline to average of across experienced quarter. second sales markets, of end production X.X% our the third our declines relative end weighted OEM a decline
shortages, factors we supply the margin basis global material chain labor declines resulting the quarter, XXX material continued and operating impacts volatility. XXX relative experience in incremental to points of disruptions logistics and and quarter. to contributed the gross costs adjusted and unfavorable During to of respectively margin second These
Total higher approximately was million of million. gross for million $XX related supply costs chain exceeded costs the which quarter quarter. quarter included $X.X $X.X third The second the net incremental than
third costs, incremental program related the partially annual to the launches. of second costs program operating by primarily favorable were reduction due compared During incentive to quarter, offset expenses compensation quarter, to our new primarily engineering
We in continue consideration managing structured to conditions ensuring critical launches and market drive future are while costs focus support current and of on program to we SG&A that engineering growth.
approximately relative those During that of quarter summarizes the EPS which expectations. for $XXX the Page second call, the expected million that our quarter performance and third to outlined the quarter quarter exceeded third of to adjusted per share six expectations we revenue adjusted included earnings be drivers breakeven. was second
relative in impacts impacting revenue while in in expectations. our headwind. costs by benefits prior reduced these driven year. discussed schedules based our the $X.XX expectations, for prior forecast cost quarter our in resulting we slightly quarter This $X.XX variable Offsetting As primarily quarter. a resulting and to for performance our other material, account expectations of drivers mix programs negatively relative experienced to quarter approximately previously, incentive cost $X.XX product external prior financial $X.XX favorable reduction we significant as compensation incremental negative in the versus current offsetting component total labor reduced performance a These $X.XX performance the by Supply to were were in reduction shortages. related as quarter including approximately well production logistics for headwind from third performance the chain of inefficiencies in the by drove resulted
to next carefully costs our incremental programs. incurred actuation system number program market we significant higher this with launches early digital continues to OEM year quarter, offset our These partially cost the new engineering expect our and current information programs, During the engineering SG&A align transmission including driver by our cost program conditions. we spending monitor and reduced related costs as first we structure were first supporting late of and year MirrorEye
Turning slide seven. to
While Supply have continued move costs increase of quarter $X.X through our be freight methods, million. as these quarters. more supply increasing incremental ocean that chain disruptions total increase more for for It than XXXX, of freight should was incremental become challenging we to amount costs the related total has shipping in that quarter noted have traditional freight $X rather as events premium chain discussed to prior that cost from example almost costs. approximately doubled we the have million ability offset over the coming from to to second so related
single related previous provide costs to were more some incremental effective. supply to to taken offset points quarter. have The costs due becoming comparable these to simply the costs the costs incremental While primarily as to globally. actions able specifically of specifically special we typically chain Overall, freight offset are more we are called freight quarters. goods We these have we costs ship tied a or material shipment to related to premium increased expenses them issue, this and related in out such XX% are incurring began quarter approximately on these slide
methods, or million costs we approximately supply XX% have almost the XX% last related $XX.X for $XX.X offset conditions, compared we updated related of million million we costs. shipping to able already chain for expectations of customer our quarter were incurred the first second third the of costs have recent current quarter XX% more in Based in and quarter. Excluding to to market in chain on the to traditional supply approximately million double year we the net $XX.X of million to for to costs, incremental full To-date, net quarter $X.X year. the from recoveries, $XX.X full heard as
net range a supply million to related the costs fourth for in million full expectations of quarter. chain Our $X.X of imply the $X.X year
we that memorable also to increase While total quarter, the expect offset we fourth are taking costs. continue to actions cost in more could
in quarter approximately the similar supply provide Matt the specific call. As chain on such, of for net supply year will guidance our later in related additional favorable be fourth the chain to will our costs to guidance implies costs third related quarter. or the detail remainder the to
to each incremental and to of like category the our cost provide taking drive will chain that update to Turning an incremental the these costs, ability supply a we costs. are I more category detailed outlook on specific for slide expanded some mitigate within actions each eight. would
and costs. heard the our most cost we First, significant incremental freight spot buys haven't
the these now in have We most made forward. offsetting progress going costs also and
turn these been portion shortages, to to a began result first buy to cost means premium procurement incurring materials continue we As component goods obtain required up shipping our avoided front either forced be to per lead well encourage to purchases or and incremental materials. premium spot directly. in the be to shorter customers was strategy of which normal through costs buys freight material strategies year. sot the times or in began spot procure pass-through implementing customers would In quarter, pay of market premium to the purchases for component than OEM we typically more this freight the we incurs spot as premium We to and of quarter print costs before on the aggressive by This requiring our specific costs our as significant second agree and resulted to has to to have customers. acquiring those That a expense. passed freight
the buy quarter are and represent less traditional to to third addition events, freight began in the our incremental across the to and increases premium freight board in In events. see expenses spot These costs tied individual significant costs. we
we these During incurred the million approximately related costs. to $X.X quarter,
to next resins. commodities to general specific then supply back costs. a shipment, purchase The our spot broad allocate efficiently such and the continue to specifically more these chain related in or that both purchases our material in market. We and costs than Because price normal second prices and customers material it the customers ship are increases go to from suppliers to of We one-off and not our time suppliers to incremental part incremental suppliers. from to components negotiate including These quarter to work category our as single and goods are traditional takes metals began is pricing. see costs increases rather with are pass-through electronic
not aggressively As as such, small certain the costs offset much within with costs current have actions taken recovery market of to offsetting to conditions not were customers. cases, these portion in In a these have increase cost, while price remain total we of quarter. to In we long a represent able place mitigate cases, historical process where term current costs. with of with we pricing our negotiations customers we in of majority putting related cost, future and costs contractual to do aligned
pricing around short the negotiations over and course programs. continuing in of existing future are term both the and We actions
price recognized long price short or benefits reduction the of be term of that both expect incremental in elimination future in forms We and the and/or the contractual downs. will
incremental of labor to and category expense inefficiencies the time Finally, related to related volatility. last production is over
either from incremental structural be cost changes and recovered portion our production that these a our While also comprise to likely the volatility are small of are in less cost, parties overall to or external require the costs these offset. environment reduced
evaluate retain team, for the serve maintaining and to ability actions and to growth. our to drive business take our market current customers rightsize while future continue conditions We our profitable
global chain OEM the efficiently effectively monitor to respond the and to continue supply and ensure to disruptions. We any our impact we on customers
We and these performance costs expect to and positive on incremental our quarters. continue the the to continued offset experiencing expected we actions next implemented impact actions overall will incur have today will to we implement several a financial in to have are going forward. continue
As IHS end was quarter relative reduction LMC expectations, to growth markets a in and end significant expectations, relative expectations the quarter our driving IHS I prior XXXX. recent it still volume our and of X.X% markets prior aligns are to weighted the markets. most OEM LMC relates remainder an forecasting production information production in fourth nine previously. slide current and headwind volume and experienced for broad for to the outlined end the although our Similarly, XXXX reduced average in third We
details Our our level guidance in call. the those provide Matt to suggest orders is reflect adjusted further revenue will on orders. current have later of guidance and customer optimistic our we the that forecasted growth
positioned take With to our next are structure the related of we to continue operating forecasted year. efficiency, the and and in class quarter fourth to take a actions growth advantage we
page in the in continued experienced to we the Turning both to build XX. markets significant external with and our OEM announcements end challenges third MirrorEye in we retrofit both. quarter, Despite momentum
in was on which of awarded revenue from customers has feedback program million. originally of launching approximately first take XX% annual First, Initial OEM we favorable. system our rate process an a assuming Europe peak the in are $XX been end extremely the
customer for suggest rates the current result, are orders take to quarterly system a exceed the rate. that take meet expected As or
ensure to demand. and that working expected to the are higher able meet We with are suppliers our customers than we
XX% in to in estimated to million resulting originally of OEM launch approximately revenue. $XX first have early take mid to our We expect America a program was which North XXXX annual peak rate
North adoption focus We OEM on in trials of America continue available. to to become fleet programs as expanding our the system drive
with the of represent those trials, retrofit total continued that As than on to fleet expand road. the a XX,XXX American we programs five our effort vehicles initiated more our expanded quarter result North during fleets
longtime we trials XXX of installed truck to will system We program we announce fleets Schneider North and are fleet expand expanded proud that with America to partner largest that those expand retrofit signed drive believe to agreement We an their we availability adoption our broad in to and launch trucks. the continue OEM as base as our first XXXX.
Turning XX. continue as of the we challenging impact chain summary, page disruptions. the quarter supply global face In was third to to
thank on efficiently committed stable to actions significant profitable we financial the long prepare our improving in drive continue execute strong I we for to our Stoneridge them to this respond At effectively a can decisive I to environment. Stoneridge, around However the to to as XXXX during for employees and recognize make took incremental term performance challenging strategic priorities that take and customers. and control beyond. to support period. moment dedication allowed delivering cost. personally and We to to and business progress company a growth that continuously will a our us to as growth the remain offset wan to to working hard challenging. want we on things have and world to continue continue their we
long capabilities discuss financial shareholder refining will on turn that our Matt I will results strategy, We to to over improvement deliver focus our value. driving more continuous in our term detail. maintain to our it With and
