Earnings call transcript Q1 2023

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Operator

Good day, and welcome to the Sensata Technologies First Quarter 2023 Earnings Call. All participants are in a listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Mr. Jacob Sayer, Vice President of Finance. ahead. go Please

Jacob Sayer

and you Jason, call. everyone. like I'd Thank Sensata's good first welcome to conference quarter to you, morning, XXXX earnings

Joining Sensata's are President; me call Sensata's on and CEO Jeff and Financial Chief Cote, Vasington, Officer. Paul today's

Investor press this In we today, downloaded presentation a presentation can issued referencing call. conference Sensata's release during addition be be financial today's will Relations The earlier the slide to website. results we PDF from of

our on Relations our call. webcast We after on conclusion website will post replay the -- shortly a of today's Investor of today's

harbor I'd on As to we begin, like X. reference Sensata's safe statement Slide

During and differ filings we financial forward-looking you to well our today's but performance make from measures. those during in Forms described materially financial this as company's in Factors risks statements addition that of as discussed presentation. the company the encourage will events The that call the involve today's might include, projections We discuss XX-K non-GAAP or SEC. we differences conference statements. cause to Most subsequent of such XX-Q the call, such are and may regarding that other to limited financial the statements results will information not uncertainties. our future in will GAAP to, relate review with actual

will will on to our He remarks. key financials We'll Jeff its during provide Paul results cover XXXX. prepared the growth income will he non-GAAP measures first management materials. operating The primary then our reconciliations discuss on GAAP detailed performance few with earnings today details a evaluate our begin presentation, financial of questions X are of for highlights its business which including the after of of second the the of financials, the segment appendices presentation and the Our guidance release company take and our the quarter will then quarter, areas. included and your updates uses in for first our quarter. business. and are our of XX provides Slides

Now President, turn call I'd to over Cote. CEO and like the to Sensata's Jeff

Jeff Cote

today is began you, welcome, our which Slide Thank and some X. outlined quarter, performance I'll summary year on on the during with on strong first We everyone. thoughts the footing. Jacob, start

first the produced revenue, a quarter, up our guidance from the from in of period we prior X.X% and During year XXX million $XXX headwind currency. basis midpoint despite foreign range point the above

basis on range. improving $XXX million and midpoint year our the prior we period margins operating adjusted million, target by Adjusted prior level to year XX% $X.XX. above net of to moved higher share was points from guidance focus grew Adjusted our to XX.X% margins of of per operating $XXX to our earnings by as from period XX%. income continue higher income Adjusted the the XX also moved

Market outgrowth was quarter only basis disappointing for XX the at points.

However, range quarter outgrowth basis outgrowth for XXXX remained XXX And our was at months, of last points. basis points. the expected above the XX X,XXX fourth for

several the quarter can launch inventory quarter and and production estimate impacted pushouts was have region said, be mix, lumpy we our outgrowth some by and platform any As and by customers in complexities. first channel

We wins business development schedules. past product long-term activities in continue confidence new and range, to have and our launch given

the XXXX, electrification strongly remain I'm achieve on goal revenue with in share in $X pleased of growing long-term quarter. to billion the we revenue across also that track to by our company

our our growth our internal reach quarter, the insights intersect innovative vehicles. as combustion solutions goal compared based vehicle deliver and on to our capabilities of strategy vectors outlined a capital customers. deployment to effectively by Last to We electrification confidence and content battery also track remain shift per the vehicles engine electric on to we upon in XXXX in of twice our

first the quarter. executed We've during a share Paul that more details shortly. will of portion strategy

said reflecting adjust markets years, portfolios our end categories and next to the Sensata anticipate I've trends. to Electrification over customers XX ways serves we infrastructure. to deal As vehicles decarbonization coming the the product businesses great in all to and in equipment is significant a change is are beyond of global before, leading transforming their investment

for power As to significant I'd others inverters areas and Slide industry. year's last developers Reduction addressable our solar Dynapower's and transmitted market for power other a X, this help on Act, or We're highlight revenue. line growth more like for In be and that drive benefit energy billion for electrification represent battery XX% and to from grid. $X.X the seeing will poised which the converters condition are to producers long-term increasing growing installations by year. provides shown Dynapower renewable funding per either to Sensata of to than storage sun, help interest solar of solar the produced Inflation energy these renewable new generation,

systems growing by remove efficient an is heavy more force with We where we in have area needs. This the It that replace vehicles. $XXX market million an and developed XXXX. in customers addressing electric content their a are collaborating increased rapidly to for also estimates sensors, brake-by-wire lead with of is application of compared solutions. seeing closely early hydraulics with braking as electromechanical interest existing sensor require and by These content pressure them doubling braking solutions sensor

Sensata these or pressure on government impact greenhouse are a new position to we electrification, another pursuing. in create the Recent to environment systems regulations that of are known HVAC the to that require required want yet switch AXL AX lower and are detection category HVAC leadership sensors addition market of identified and gas driving improve reduce areas we've global to to by innovation refrigerant sensing X, detect new coolants its I Slide leaks. highlight the in manufacturers new gases broad meant In warming refrigerants. has leveraged to with as to

fast-growing widespread this category already a with solution addressable to market have HVAC expect years. revenue be from we in the million largest very X the and the a won We million adopted $XXX $XX annual next X a creating on sensor in of manufacturers, basis,

now over call I'd Paul. turn like to to the

Paul Vasington

and was shown Adjusted of million, quarter, revenue movements foreign acquisitions the foreign quarter, Slide increase and volume, reflected quarter highlights partially income and an improvements, was and offset as growth $XXX the in market to of due higher $XXX the compared divestitures. offset Thank XXXX. headwinds acquisitions operating first by by impact and the to This primarily year market of the pricing first X.X% partially from and quarter you, include currency. Revenue from an productivity increase last on divestitures increase Jeff. Key in net outgrowth of X.X% of currency XXXX. million, first X impact for the of

operating count. from tax a to XX earnings faster first the per prior XX.X%. Adjusted rate share prior operating grew XX.X% basis margins adjusted from than improved income the share lower quarter, to year and quarter the points due cash lower lower year expense, in period interest Adjusted

Turning to X. Slide

operating chains availability last costs, during improvements As a were our inflation to This cost investments also reminder, margin material productivity delivered offset XXXX. increased better we we that through time increasing improvements costs drove impacted in year. when slowly and margin growth significantly adjusted entered have improved from adjusted in supply logistics components control Substantial operating vectors. we impacted and and pricing our significantly, XXXX, the higher steadily XX% level that at a reducing

to adjusted margin Insights. margin operating second executing efforts guidance for to to includes the in opportunities intend to in year-over-year our significant of Electrification XX%, on a improvement financial continue and We while quarter our rate XX.X%. Our return target growth Sensata

in business the comment I'd of like to Performance segments with starting XXXX, X Slide performance on X. the on our quarter of Now first Sensing

of foreign revenues same and from by partially reported off-road X.X% increased product currency. revenue delays unfavorable pricing, million, quarter in year. strong launch foreign business new to in reflects compared and $XXX.X partially vehicle Sensing market of by acquisitions increase Growth Automotive Performance Our the higher an offset and last revenue Insights, revenue offset impact growth currency. mix, outgrowth of heavy the unfavorable

Performance operating currency. operating margins operating declined $XXX.X with largely was due slightly margins year-over-year, Sensing unfavorable income to XX.X%. of foreign million, Segment

to as $XXX.X unfavorable currency. decrease HVAC XX. the to divestitures. of content markets, was Aerospace market operating X.X% operating reported year. weaker XX.X%. quarter, the As to shown revenue due of pricing of on the was $XX.X a margins Slide revenue revenues The higher strongly same the in due last decreased offset primarily due especially appliance and to income Sensing and million Industrial growth. million, increase largely foreign quarter Solutions quarter pricing, acquisitions compared margin operating first Sensing and Solutions by in with of increased in segment in impact

Sensing as the Sensata XXXX, created margin transparency of provide as quarter of the XXXX, Insights will X previously X, progress business results this Solutions been have Sensing. new Insight's into management revenue with to growth April reporting Performance segments: a to align with reporting financial reported segment part the and report of of second Beginning Sensing, insights. Effective Performance and well lines. as Sensata results new financial

from On expenses the XX, non-GAAP our other income corporate corporate XXXX. million in quarter Slide segment compensation $XX.X quarter timing and in impacts. operating year excluded primarily first from included as $XX.X for not Adjusted prior results, foreign lower were costs and amounts operating spend, and were exchange other of and decrease favorable million, the sequentially, well reflecting incentive a controls, as megatrend cost

wins $XXX customers' for in and XXXX that year, billion million invest impacting this to megatrend-related the design sectors businesses. and along We rapid development million expect our $XX demonstrate than year are capabilities clearly than million to appealing to record research customers. last trends growth revenue more more solutions with expanded in new and growth differentiated The $XX our business of $X in our our Sensata's to develop fast-growing

cash quarter million cash incentive Moving $XX in timing flow payments and last Free to the by $XXX months. in million Slide during XX cash higher in was the working over capital. tempered first the of XX. the flow free flow compensation We free quarter generated first and

cash XXXX, to free of year For full consistent Sensata's we expect income, with be average. long-term adjusted XX% the approximately net conversion flow

the rate debt currently most of million which Capital our capital intend range term quarter. loan of in expenditures expensive in XXXX. remaining be $XXX to our million approximately quarter, variable during of $XXX the outstanding We down are balance million paid this in structure. the expected $XXX million We $XXX to to is the repay first

at leverage the end Our X.X March was ratio times XXXX. of net

free cash to this years, over decline to result X.X flow next generation. of a the expect strong to to times X X We as times X.X

In share shareholders May in recently to XX. announced an per of be paid increase and our quarterly to May record dividend to is on addition, expected we XX on $X.XX

guidance shown XX. providing as for second are XXXX, financial quarter We of the on Slide

Our market right and macroeconomic broad on estimates China-related based side We more upon of the for automotive expectations conservative because on growth risks. than shown the of remain outlook production IHS page. the quarter are end the

quarter. second represents and a the an Foreign headwind exchange headwind expected EPS revenue to to million $XX $X.XX in

fill revenue primarily year-over-year approximately the the current margin second the the midpoint, to quarter. of quarter from XX.X%, and XXXX, be offsetting second and is foreign from dilution improvement rate due the exchange. XX% operating midpoint Our basis At expected of adjusted improved a for and acquisitions to productivity pricing divestitures income guidance point is XX

full expect given XXXX, the X.X% to headwind and we per to headwind earnings year the a current revenue $X.XX exchange now share Looking exchange to to foreign be rates.

to call for over comments. Now back let me turn the closing Jeff

Jeff Cote

Paul. Thanks,

the inflation, reliable Let highly are me to by resilient high Sensata's deliver and remain various while are events. to on messages markets of our geopolitical geographies customers rates, mission-critical, as XX. volatile, due up required wrap other model solutions engineered few a in and as organizational interest expected growth and business recession with key strategy Slide end risk outlined strong, we

brings strong management markets. navigating in proven Sensata's team choppy experience

We as end transform these execute on markets the focus to growth to we the serve. initiatives growth continue rapid on opportunities our across we all business

returns margins, progress excellent now growth. by and and business our making in stronger cash on financial strong revenue strengthening This Insights success us improved demonstrated are on to flow free We as significant higher new return allows and capital. Electrification wins invested focus through

expanded today, solutions challenges product some long-term in set differentiated enable to for trust challenges of earn seen I to of and widening and customers, leveraging our solving specifically and mission-critical capabilities, engineering examples the customers margins Sensata solving a difficult while continue to our discussed we As our deliver shareholders. array industry-leading customer providing their innovate for

on customers' for not Sensata's own to but to And operations, safer, meaningfully finally, I'm help world, our our we a delivering vision pleased better create a electrified connected results about contribute in more long-standing also products, to just and through strive cleaner, world. our

on achieving progress for in sustainability of update We are we'll good latest long-term making sustainability and of bolstering ESG results report, upcoming targets, all our and stakeholders. our the the our its success company

back Jacob. call turn to now the I'll

Jacob Sayer

Thank We'll to Q&A. you, move now Jeff.

listeners ourselves please speaker? to would introduce and the you each. of number questioners on question please limit Given the the to first try call, Jason, let's X

Operator

ahead. from first Please comes Bank from go of Our Wamsi America. question Mohan

Wamsi Mohan

I and seeing terms worse? And be could you're there in you are you both in Jeff, demand, the industrial perspective or from markets China, trends was comment improving getting of that XXXX? markets sense get particularly the if wondering helpful. in color about do your the Any in auto would stable or end

are operating expecting seeing on better Paul, productivity we're a sequential a revenue basis. you XQ? on much better guiding what comment maybe to if the more XQ giving in you can on productivity, quarter-on-quarter and And in particularly could, for especially also you And XQ, year-on-year I relative not price price basis. is confidence in XQ leverage up why

Jeff Cote

the of that one on of Great. given great China in impact me it region company. touch we've and and the importance it's the investments magnitude made Wamsi, financial has the the let on topic,

performance look -- you mostly during were China, to broadly markets first the the quarter. was regionally when dramatically, but American the North Asia, of and more first first Sensata up. at quarter So driven down European quarter, China by

So 'XX. of quarter XX% first to of first down 'XX quarter

market last the stimulus that been candidly, would consumers it restrictions happened. have anticipating lessened, in as has several COVID observing just quarters government that for not back be And and China, come the would there we've

of multinational a occurring the of I speaking, keeping I'll outgrowth well. China the to directly so very a that market some But it. the to on And speak in Broadly in automotive dynamics some we're is when other as from suppliers occurring elements there shift there to eye business. more close And this talk are local. in are

down terms market. So the than a are meaningful there is change of that the in more sales multinational quarter-over-quarter

market, is toward for as is shift loss. important local because which there content that happening driven an is element so occurs, watch but aggressively And in Sensata's most by it towards brands, largely is electrification, that move shift to a there business the

the Chinese than we have multinational. do content We on lower local brands

So that closely we're well. as quite watching

period and get will of Now there we in terms management So China question, it's in in be on for what we'll the of experiencing what market. we time do feel been next expect opened. The better the right? to couple it go market. to team of long Thanks has and pretty opportunity going Myself around, we're on, what's to to just then keep weeks come in the decline a the ground. in the terms a And Wamsi. going updated the you see the for of

Paul Vasington

Wamsi, it's Paul.

question. On the second part of your

continue margin seeing good definitely XX the see pricing we're quarter-over-quarter, very part QX, We It's points to important you're that. an it's that of in driving and expansion up execution. basis

with see. continue still in market inflationary drive We pressure the that pricing we're in that we to the

quarter-over-quarter. will that continue QX So basis up QX. points is into XX

things only mind. couple of it's keep XX. Sequentially, up A to in

from and year typically have would unusual. we trend our It's see cadence, see higher the So and that QX. is our between to you of QX rising the QX compensation Nothing volume normal such this eats we and cycle costs that every a QX compensation fair amount up contribution from revenue.

going So little to from QX. bit unfavorable QX

So also a that's a bit headwind. margin

Operator

question JPMorgan. comes Our Please go Chatterjee Samik ahead. from from next

Adeleke McMillan

year. is on previously to This of asked, operating that so XX% Chatterjee. Samik just adjusted on hit Adeleke you of margin I'm this wondering, a to plans adding guys was behalf McMillan a previously kind stated but question

bigger just half quarter, to jump from of wondering, results that was a this versus XQ I in Now XQ XX% this XXXX like, second to your target. implies given hit much the

driving into So the or the that year? of what half the confidence in jump actions? revenue an exactly that Is insight can you other us in is second give

Paul Vasington

a couple things. of

over expect going that to achieve our So said times we've is And be that. time. volume many is target the contributor that to to biggest margin the we XX%

So but we're that much have at is largely guidance business. driven achieving not target some that of we year, giving the but point, believe a volumes better for full it in confidence the we be by

wouldn't challenging. would surprise prior still in XX% end mean, as to second said [Indiscernible] remain with I the right we're a half. quarter the in markets in seeing, it As I calls, get me we But

goal, continue we to And time towards to work there. it will take will so get that but some

Jacob Sayer

we be a year financial the not for for clear, XX% the to have full not and Emily, financial given have provided is guidance guide that So year margin. we full

Operator

ahead. comes Sachs. Delaney from go next The question Mark Please Goldman from

Mark Delaney

a as bit or positively either Can the the you terms first call of you'd order speak little more out trends in on that negatively end quarter book-to-bill company the in that in the saw trends? any book-to-bill more markets and

Jeff Cote

Yes.

is So first million that. a automotive. guided off-road, outcome ended better concentration home The only had a across impacted saw than our end We global business. bit a is in We real revenue. better a better aero. which We largely in that industrial which at and around a quarter, lighting $XXX We is we business, HVAC major markets part little the estate market, commercial that appliance, outcome higher end we better anticipated vehicle, to outcome. big market worse saw of than of was some our in saw industrial the with heavy our by housing,

the only that's expected. that's compared we originally So X had down what to

has to been as standpoint, and look we monitor a I resilient. earlier, a continue been from China year here. mentioned America the and had forward disappointment, of Europe balance that regional has we'll to North quite the

X.X%. markets into the auto second baked we guide. quarter, into Going the what's to would expect be all the market, down about of That's our

X.X%, second year X.X%. quarter about of As well, this last we us have FX year impacting

despite guiding market headwind. So exchange decline X% growth to we're a foreign and

year last up and will this again about would those quarter Europe markets, And quarter the quarter down X%, industrial auto second year, again. to markets, growing then all most be China in versus and prominently in of second expect aero grow we second across off down

across color markets. what we're in bit of seeing little a of terms those that's So

Mark Delaney

And book-to-bill clarity helpful. just very all on any level. That's the

I seen but think of coming companies are lead a book-to-bill on clarify book-to-bill. the number if sub-X you as have in, just could times

Jeff Cote

Yes.

chain the a to normal So with the customers be bit read of -- little over there's do challenges, but the to hard have our normalizing supply appear been little been order last bit. several patterns years they a

the pretty guide provided. For historically XX%, against order bookings on we are is a we second about are level the level where revenue quarter, or that consistent with intake which we

happening when we're But order, they not material always we've gain availability. is that said the still and as stabilization. And it's levels with of seeing inventory does raw you may patterns on more be with remember in a challenged I market. order to confidence belief that last ended we to clearly, would we're bring customers say the had million deliver would $XX the an It well normalize our automotive place inventory it, that as going question that in and more broader year regarding that because we that going channel

happening I'd any harder I it's sort overall on the going out lot and it's question, an But in terms that's in that a to channel. the quarter to contraction in we focus tell point current inventory of what's element we're call growth getting what's the of of you for Mark. the that's becoming the not our in where numbers, impacting estimate channels. smaller business. did Thanks the to because suspect outgrowth

Operator

ahead. Junk comes [Operator Luke from Instructions] The next Baird. Please question from go

Luke Junk

giving on what And being into that, margin Just and a you control view target hoping market just in finer just wondering versus you. or your for you how we Slide the is I'm what in XX% could business, X lean drivers certain the within order? those should the as regarding drivers is rank can point much the on put

right? control, volume thinking And pretty it at reading on your I within your the dependent. all, Am seems has changed still that's that piece

Paul Vasington

is still very volume It dependent.

the in side. a think on pricing really productivity doing better I job the We're business. good driving we're

margin around out that level in You the The Sensata can for we're improvement, the way laid future. are not investments are chart, the margins. making in the at see our we the the acquisitions headwinds growth

the see having to for and that's rate everyone growing we're impact then that's as an been laid currency. margin so consistently and on And out

that revenue where its also business the semiconductor last a business profit we're height strategically going of was we with directionally. that given at and aligned And the divested wasn't cycle, year and

margin in yes, divested business, start so a will dilutive off the apples-to-apples. volume second business our and to And ability in half. going it's operating contributor be to half, And next months. structure that continue we've just leverage to to our great the there to And expansion, to volume first and as the to drive have year-over-year XX is impact markets the given then the -- that improve of hopefully a XX going in is be

Jeff Cote

provided And quality just we investments. that is also we to time such achievable to quarter points XX% year, on those believe profile guiding getting that over revenue this haven't the on some I margin guidance, with of good very and to basis we improvement emphasize flat to want this business higher although X% of is Luke, first saw uplift improvement that in points XX quarter first in XX quarter first basis we're the revenue. And

get to and take over you more that And managing with to profile but get on to there's keep time. to will management get lift hard getting continue to not associated margin so there. hard to work that's margins, way, but that flat do the to we'll a conviction updated market, XX%, And of volume the back it a better result it doing right, time

Operator

go comes The Cowen. Joe from ahead. Please Giordano TD question next from

Joe Giordano

Yes.

on auto So X%. the for double growth third-party digits. saw just like last Like that XQ at you're I curious were using estimates

banking in is as tightening maybe yet and you not then any potential changes And gap banks. seeing like touch banks So but maybe the curious regional dealership you're that I'm even like there. you down like just on, just what level, to quite smaller given like could get the and if behavioral the it

Jeff Cote

Yes.

so broad-based. a calling absolutely growth million, would quarter about have would million, it We're XX% right. year-over-year. about XX.X suggest the growth. at That It's units. X% you're at second XX.X IHS So million about only XX a

XXX,XXX We're we're estimates XXX,XXX are. calling Europe So another IHS North calling America, what off. off units

pattern a be hear on we what based came order than through. we're right? customers. to what bit we're IHS little could a had be it called out first we seeing, But wrong, In really the our better seeing And based from it's it to from prove estimate. what the conservative revenue bit versus quarter, upon calling is we're it turned little so more it, the and And

macro, still the although shortening. quite is view, of are in interest our to a of continue automotive challenge, expect we're lead that of mechanisms. There fleet It OEM there's terms positive terms yet and customers of with age there be desire and the other vehicle very is market, improving the for seems overall to not In still that vehicles. inventory growing, the to the incentives time the times help of part seeing is strong rising that raw moves may demand to on alleviate terms do that other we're in but some We of over the would rates, financing this. be the surprising

vehicles. for still So demand the to build many available levers there are

in the of we're So years cautious I growth about market, historical we relative given optimistic regarding are although next reference to points. we're quite think automotive the terms several where

Operator

Patil Wolfe Please The ahead. next go from Shreyas Research. comes question from

Shreyas Patil

to wanted just guidance end I the maybe to automotive come back markets. for

orders. there high visibility pretty with to obviously, expecting the of the for be relates as rate, quarter it would seem most what to XX% a you're So for fill

from Or there share is inventory. OEM expecting IHS. particularly market you're element gap you of is for some of of too market optimistic? sensors those versus higher believe other end a vendors Is case between that some what IHS as the So existing or from sourcing, being the

was more And and locals can mentioned that. then hoping content give between I the context you around differential you Sensata. a multinationals maybe little for Chinese us

Jeff Cote

Sure.

to overall I for expectations that going to So to of terms more demand vehicles. be belief boil it ability as to opposed down does in there's regarding think vehicles bottlenecks produce our

the proven think million on the estimates the units. IHS I XX.X deliver around can of XX million, industry they has

So bottlenecked to I think from produce. don't it's ability an

it's raw of a question be. just ultimately think will what I demand the

the conversations rates, conservative see up. And more based out. we're our could with to again, is if orders estimate, want upon could emphasize, order customers We which the basing orders you see we pick drop

for have, with X-week our customers, order automotive part, a fence. We the most

strong for is as to also place orders. an them drop see there's the still some the for to But them time quarter as seen we've So demand out if past, they there in opportunity orders of more those progresses.

how try to to the to read things are can looking. tea the read we So you leaves we give a as best

to But on it's be long-term optimistic which benefit vehicles, overall regarding is transition only the company. believe longer in-quarter not we but the estimate, again, quite a continue automotive we electric term, to the to

the on point then And the on China. other

directionally environmental but other all Chinese local including vehicles. does that it's have talking the engaging they provide producers about. and braking half, And are vehicles global pressure earliest electric less to the but platform -- OEMs, content shorter for those on additional vehicles. -- we're color many next-generation the and we're among depend with serve opportunities applications, that our Sensata conditioning, just adopters of So on the really it was would air their there content controlling from an many electrification standpoint. of tire And China I range, on that Certainly, on is electric and so actively

-- direct local but is question -- to half the content brand about Chinese a there on a it multinational. So your versus

Operator

comes next from Amit Daryanani Evercore. [Operator ahead. question from Instructions] Please Our go

Amit Daryanani

I for guess, is right why on can maybe trends I perhaps content on the touch now. that's the a number OEM are the you of bit how year. somewhat of at that's if talking IHS more Jeff, potentially, which your think rest was about about think and I'm inventory wondering level, you that do OEM to you order it, at the your do what sensor hoping part excess about. of just the And a below levels a headwind talk guide inventory inventory you side

Jeff Cote

up. vehicle which Yes, absolutely mentioned, the we inventory, North lot And as read has American in in market inching terms pretty good be. of been it a I have could

it's first days XX at of quarter. the of I the end think inventory

to So sort days going OEMs the that's It's have you'd is, historically see. or nowhere of lot discussion off long could so deal XX or inventory range the the regarding the And or normal right? XX bottom in are back to whether we that level. not go near a what

If there level from be time. above production going then they in sales to do, clearly, over that is will an benefit increase

of we that to our in question or model exist the the is channel, parts used parts in around other part some The customers' That's our continue variation get to, see not and production are quarter, that In have produced. we've watch that's inventory did harder versus high our to warehouses any that to around there, vehicles our that the for partially of exist parts pretty shipment market as closely. but meaningful it first a share a rates. going proxy we're we

shipment, would have to because going They're not material suggests this to on-time be that shipment confidence dialogue more terms ultimate just-in-time inevitably our to a in what's for starting And in their expect on that customers the they inventory to a standpoint we didn't the I sure delivery proxy with the raw the is from models. in channel, expedite that come, the we're going And happen. revision will gaining Friday, there's a have back call increasing. we to that is our from understanding or see our of and Amit, make to they're the it normalizing arrive, know which when of right? for customers the normalize bottleneck a And more on move inventory customers delivery we're is going we wanted to

Operator

Jacob to the back closing This to concludes like Sayer over conference for question-and-answer any remarks. I'd session. our turn

Jacob Sayer

We late Baird for of the forward look late and quarter, be Thank July. of again us Conferences now this and thank your this us those end like everyone quarter to Sensata in our May at earnings you, participating morning. Jason, Thank the JPMorgan, one several including investor Sensata. in May events seeing joining I'd Technology morning in second interest in call. or call and on RW June. this will in can early conferences Oppenheimer's of and Bank you all America you the joining for early you Conference Industrial Jason. for to

Operator

conference now today's for The presentation. you. attending has Thank you Thank concluded.

You may disconnect. now

Sensata Technologies Holding (ST) 25 Apr 232023 Q1 Earnings call transcript