APTV - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day. My name is Chris, and I will be your conference operator today. At this time, I would like to welcome everyone to the Aptiv Second Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions] [Operator

Rosman, Investor Elena begin you President conference. your Vice you. Relations, of may Thank

Elena Rosman

Good thank call. morning. for Chris, you, Thank And second XXXX joining you quarter earnings conference Aptiv’s everyone to

slides Aptiv. To with the and and with restructuring and calls, follow prior will and continuing actual found review our financials today’s our address consistent of along today’s forecasted at can presentation, other ir.aptiv.com, of be operations exclude items special

well back our reconciliation our between XXXX non-GAAP and the quarter quarter outlook earnings as The presentation as third measures for for the second are financials, both release. included of GAAP and and press full-year in today’s the

Please current different reasons for we our disclosure a view actual cite from reflects that Form XX-K in of filings. see future which SEC two Aptiv’s materially and which financial for be other on performance forward-looking Slide our performance, statements, may

provide CFO XXXX the cover Joe results today detail. Vice President. us CEO; and our the Joining and will strategic be President more will and for Joe outlook will Senior Aptiv’s and and then Clark, a update Massaro, in financial Kevin Kevin business on

that, With like the turn over Kevin would Clark. to to call I

Kevin Clark

through year of our going first and the as Thank good and in morning an everyone. our quarter of the quarter well then half second financial outlook as full then second begin you, you by will more providing I'm overview take provide a Elena on results our highlights to financial perspective detail. Joe year.

all geographic over high-end our above increased very environment. income, the back May, in line segments of was reflecting X macro while in and provided region. the across both strong EBITDA, quarter reflecting market strong operating of operating were every production, points vehicle performance earnings share Revenues X% underlying representing growth with even and in range challenging the growth we guidance guidance per Second above

and by income cost volume $XXX in and material performance. driven respectively, and million reduction growth, very totaled Operating solid share overhead $X.XX earnings manufacturing per

totaling leading breaking strong led year-to-date billion. to portfolio's awards total to billion $X.X advanced customer $XX new Our the another under industry technologies quarter of just

To touch environment portfolio validating model strategy. connective put in green technologies, of it good sustainable quarter and our operating flexible it another simply, a business was further safe,

by Slide macroenvironment, to a global expect production backdrop weak I which X, the the to now given outlook by decline to principally in of previous our we X%, versus our market. for unchanged. production, Moving flat a decline offset in vehicle Driven forecast light full-year a like Starting provide further by driven X% year vehicle would X.X%. commercial for remains left, weakness partially on vehicle a China, automotive

conditions exchange results. U.S. Foreign supply headwind remediate headwind although as are we exchange and to and tight RMB Higher as our impact continues the prices, a on principally continue headwind aggressively be China be result a are the prior of specialty than tariffs also resins rates euro year. a remain working to weaker lastly, to commodity globally a

in by productivity and In the a quarter reductions, our incremental share both However, vehicle year initiatives, which as regional in well and revenue, the unchanged short, as driven over I of exposure, as macro and us half in material overhead operating performance market balanced as cost a continued EBITDA profit growth content to second our execute traction margin for market our translating mentioned, to outlook related full full and and the result outlook our customer, XXXX. and expansion gaining into our end manufacturing confidence timing gains, challenging environment. market gives in strong and all remains second per of ability growth strong year are of

X. Slide Turning to

perception advanced integrated segment our more user as vehicle safety our solutions and outside Second both to well portfolio helping systems the us connected of In green with systems central User the enhanced safe, and cabin sensing platforms active in experiences. through alignment Advanced safer, smarter, megatrends. as deliver our are billion highlighting expertise and in the Experience computer quarter bookings business new Safety totaled and $X.X &

second Active Safety business quarter, million, puts [ph] $X.X million exceed track totaled which to on the in In new bookings XXXX. $X us

in & awards segment those roughly of XXX billion quarter the Signal Our billion. Power million totaling year-to-date bookings. bringing Within $X engineered $XXX and track total of had record we're $X.X meet last year's new during numbers $X.X or bookings exceed booked business billion over including to of billion distribution components Solutions the high-voltage million electrification $X.X and on to we electrical

User Advanced product strong to Turning continued product over revenues. demand drove Slide increased line business, decline a Experience our and growth of And Solutions Safety for XX%. X% the in tied to revenue is revenues our quarter second to line X, points expected, loss our market. Active as displays The on Safety of Experience highlights segment User revenues contributing XX

system underscoring industry the Wagoneer our safety Cherokee the quarter, for in with we ADAP our advanced to satellite further the active and FCA, position awarded Grand Additions programs During awarded architecture leading [indiscernible]. previously Jeep solutions. [ph]

advanced cost new X, ability the while Smart [indiscernible] vehicle the electrified for the that automated is rich, capabilities in optimized necessary our an Slide architecture leverage unique opportunity for brain architecture unlocking ownership or business our and has also to the positioned and vehicles models. nervous support of future. to highly deliver of the the both and of us to to total perfectly lowers architecture vehicle the feature the system SVA Turning OEM,

different year. them transitioning enabling full we two advanced vehicle our see in awards highlighted the Aptiv's architecture ability as received roadmap systems to another Investor the many point, of domain specify as commercial we've Underscoring recently in the XX Day premium representing approach award solutions. for continued During in next data our controller generation platforms of speeds different This awarded to OEM more evolving and future. XXXX unique were step effectively the we power customers early we at conceive, their and scalable June, our this won SVA Controller win. well that a European are Zone And while deliver the we validation architecture first center represents SVA development

Turning green the XX%, the Power is increased high-speed enabling to distribution that High-voltage industrial points and & to revenues X% support X XX%. and electrification power were safe, Revenues commercial technologies during advanced, X, up our connected applications data and Solutions are segment Slide required our vehicle increased the focused Signal quarter, market. while over are demanding. on revenues that customers

premium systems Tesla XXX recall Battery we X low high quarter system that voltage quarter including wins we Y the Electric and the the the won distribution business awarded launching for Model last were Fiat During Vehicle, on new China. The new voltage Model the several signal the in the architectures as In voltage ability OEM. platform awards to low for well. as in through and high execution. our serve with These optimizing China consistent SUV large underscore as a of well customers launch systems distribution our globally complex strength our new electrified electrical in

their COX at of our XXXX aggressively the left Between on per you Turning to global ups. X, emissions electrify emission an are and customers line vehicle to the Beginning in progression year. X% declined average Slide of COX see rate working of Europe. XXXX all side, can

responding are aggressive per have their will OEMs more then annual need by targets meet future X% been XXXX aggressively and roadmaps. much electrification through to XXXX. challenging year by targets, to and reductions sustain technology COX X% OEMs However, accelerating These a emissions reduce through

new right XX our over voltage the billion to workings the expected over XXXX electrification the of growth on to representing production. customers. XX% now globally, of high business is hundreds are our a billion X.X deployment nameplates in new product slide, and high period. XX% OEMs Moving of tracks roughly With of be to compounded since lines. launch vehicle our platforms expected spanning XXXX side Aptiv's growth XXXX Between new pace revenues revenue of a rate fastest bookings Based high and global the growing among voltage voltage

XX, market markets, Turning is growth capabilities to our vehicle in strategy, Signal above industrial allowing our into Solutions & the partially us of and focused expand both Power segment continued inorganically. organically and result to diversification commercial our the Slide

XXXX. total XX% from that's and sales up are just approximately by revenues from expected [indiscernible] are Our XX% today, XXXX to reach of X%

with upon Engineered Group build Components acquisition As provided previously us platform highlighted, solid our of to our to execute a strategy. diversification and Interconnect Winchester

adding In ruggedized components space. which the supplier pipeline. on management Winchester has revenues. the and of machine As slide the connectors with and W our recently team specializes Winchester precision cables XX oil bonds actively assemblies Falmat, connectable mission-critical the a strengthening rotatable in months the further our and in accretive been last And acquired shown other capabilities acquisitions of the number industrial in Technology more gas expanding

specifications. design to need of consistent failure challenge these in temperature, is high the across and Now cost vibration other product businesses meet the the and

ever a the more for bolt-on in are component engineered to platform We additional serve ability confident Winchester's than as space. opportunities in

to a Investor to turn it I Before minute recap take Joe, our like over XXXX Day. I'd to

For those who live of portfolio or an participated and webcast, via and with I understanding you rigorous away execution of of our hope came advanced better video business you culture. sources even the strategy, our either solutions,

event replay website you review. for of those For your available the who missed video the remains our on

downturn predictable resiliency. more focused robust business and on we're with summarize, To sustainable building

our of record mindset the execution our Now shareholders. and we significant on macro are which disciplined of in to value means strategy and outperform we our that track environment. Ownership successful to driving positioned any delivers outperformance, a remain focused combination continuing of

that, going outlook hand Joe quarter for to I'm take XXXX. us second results to with So the and to over through call the

Joseph Massaro

our on X% production revenues good totaling billion in everyone. the morning Kevin, Thanks quarter. X% and Starting $X.X over growth market of revenue Slide X% quarter as XX, were vehicle adjusted, up declined growth second with

market organic acquisitions, was over growth X%. Excluding

while KUM lap the and fourth Winchester quarter. will at is now integrated second quarter, itself the end As a lapped of the Interconnect fully in reminder,

in From and The unfavorable productions lower FX into of launch despite in volume content we of perspective, regional quarter in XXXX saw and region major to performance impact had continue we X.X% a the vehicle year-over-year. and of commodities. XXXX, the offset strong every world gains strong price helping the

up adjusted of with points America over X X% revenues growth North were market.

discussed growth was over over by partially in of over growth programs. adjusted growth X% market the driven product our several up XX revenues acquisitions, quarter. negative the uptick exceeding Excluding growth production X%, China display China lastly, and line points market X% down by adjusted previously by and passenger in active, points. resulting safety volumes Europe market significantly the were organic electrification offset low overall, of of the of vehicle And audio XX with was launches exit car driven key

outlook growth China will on Although see our year provide update our our across product an vehicle the lower strong production to key production expectations, we shortly. than continue for lines. was I

income operating Turning to we impact production, and and FX, the and EPS provided lower of were all the respectively of quarter headwinds, EBITDA, for of offset in $XXX commodity million and Slide XX, vehicle FX volume and income, margin $XXX Operating guidance cost operating second reflected the million end reduction actions, as well and partially Kevin savings was positive tariff May. XX.X%. tariffs commodities back adjusted above indicated, high of growth. our benefit by as as EBITDA

a $X as actions were traction driven $X.XX the operating forward expense with were tax million by from guidance Tariffs to from model. in well of savings tariff changes Net the I'll the were will guidance, demand although operating levels, cover favorable our earlier, Earnings lower structural noted on our These reflecting $X.XX favorable. line both some inclusive reduction on above benefit higher better income benefits benefits slightly of also the sustainable headwind in below and the share increasing remediation as items cost going actions. from moment. midpoint year-over-year, be $X.XX as part in $X.XX per

next than planned driven the growth and for the grew & Safety audio Safety Advanced product quarter, our line roll User of launch over more infotainment to Experience. Active Moving by or on new volumes slide, segments in and revenues the off display X% market User launch the and points Experience the XX cadence robust offsetting

investments higher backlog Operating wins of support our performance particularly before engineering mobility in strong new included Safety. spend of to the Active higher impact

[ph] low XX% we double-digit result, a year operating Safety expect up margins. Active the for with revenues As

$XX remain we to and Our $XXX for totaled of target quarter track million mobility for our full-year. million approximately the the spend on

revenues were adjusted Turning market. to Signal totaling XX, X% & X% growth on Power Slide up over Solutions

basis dilutive high-voltage in points. Excluding FX, line. growth was on points. XX.X%, electrification XX.X%, driven by margin market XX double-digit X% down tariffs, strong acquisitions, the product growth for commodities, adjusted margin our basis over organic comparable of and income EBITDA was a impact was XX basis Operating up

production outlook by as production our Given overall the volumes for in in a were weaker the revenue saw China. our continued our than XX expectations down better provides update Europe underpinning year. weak We expected total macros, offset X% an vehicle of global track second Slide vehicle assumptions quarter

constraints, slightly in to of macro extended X% decline production the the However, year. vehicle down us quarter and our by uncertainty, outlook lower vehicle X% have in continuing partially particularly vehicle revise level, remainder automotive for global production, market. At caused third the a sales, regulatory China, weak full the vehicle be in we vehicle commercial production outlook a percent by year versus down offset driven of a prior our to for and expect X.X%, flat light

volumes key adjust region. cost China production and From the going experience growth And driven our a in third we are continue XX% expect lower regional market the in while growth in take to by actions decline for to to product for preparing we quarter China the industry structure XX% to continue perspective, we our forward over strong areas, in double-digit and year. structurally

we quarter Turning the for by full-year, down vehicle to X% to lower program expect in production driven and the Europe, to flat continue be launch customer delays. and demand third

North over connected market technologies macros global offset we market American continue market unchanged to automotive largely balanced regional growth more safe, industrial every see the and guide. prior region. we to portfolio in than our and Despite from of customer production green the challenging contributing the expect and mix to Lastly

at is As while for X% the $XX.XXX unchanged. result, up above a higher the growth market revenue midpoint XX% rate and outlook of our remains year billion our to slightly

XX expected of billion range $X.X Slide in or market. billion, of of up XX, revenue the quarter X% to $X.X midpoint was growth to points third over the Turning

respectively that and EPS Operating and $X, a the expected in at mentioned I million quarter. X.XX. midpoint X% at of RMB $X.XX As production to assumes of tariffs estimated global be down addition vehicle includes $XXX and are the in income €XX one to an and $XX million

Revenues no be EBITDA billion of $XX.XXX revenue, to and, Moving our operating to to the are full-year, to change XXXX X%. outlook range in X% the midpoint billion income. in for in the expected up $XX.XXX

commodity U.S.-China adjusted continue And FX midpoint We at the the be and $XX headwinds our to of outlook includes for and $X.X and income million EBITDA expect billion full-year. respectively. $X.X $XX over of to tariff billion and operating million

our And continue to aggregate, we $X.XX that into believe and is impacts technologies at expected assumption in and the strength the are revenue $X.XX, pipeline In short-term the growth improve our now reflecting these head given to prior key should bookings XXXX. of mostly as $X.XX we of we midpoint of higher in XX.X%. capabilities. tax-rate range guidance, EPS from our updated invest

CapEx continued XXXX, tax of model. and of operating relocation of is the with $XXX to to Dublin to million. million XX% and expected be unchanged forward restructuring rate to Looking reflecting cash range remain roughly billion our cash in we expect $XXX alignment structural Operating to XXXX XX%, in $X.XX flow our outflows our at a

volume new active launches in in range lower billion of and billion to the provide more engineered on with be we a versus half Turning revenue to second driven Starting the incremental $X.X expected second helpful first ramp revenues components, safety, to half and half. detail electrification, half the full-year would $X.X outlook from in thought from volumes high-voltage on ups program walk partially a perspective. slide, it next left, second the the the production by offset by

income referenced the material and performance Moving from million the at tariffs, in as that well FX, continued to traction expect of initiatives added the from half $XXX and by reduction savings walk benefits the on our are continued volume of commodities, and earlier, as the Headwinds and offset right, Kevin manufacturing actions. cost growth second we our benefits operating midpoint.

underscores product revenue strength maniacal cost the reflect in summary, in fund remaining In to strength of production the face ability to of of continues while growth declines vehicle the the performance our about growth. our portfolio, investments and our structure operational our self future of benefits

Kevin for the hand back call closing I’d like remarks. to that, to With his

Kevin Clark

let up open me we wrap it before Slide for Q&A. Thanks on XX Joe, up

though further drive despite market and environment. quarter on ability second growth was sustained commitments a evidence of Our performance to macro deliver our Aptiv’s above

our to over growth outlook of We’re roughly to XX points market. X% revenue includes growth XXXX maintaining X for representing which X%

for lean the future As our second of structure to of the and our approach Joe while benefits year investing in growth mentioned, cost our reaping model. business the really half balanced outlook reflects our flexible

business also shareholders. our macro believe we key Now as sustainable a predictable and building capitalizing and differentiates downtown with capable our to unique Aptiv robust continuously formula perform in megatrends, X.X further any more delivering of while resiliency, value the company to better environment positioned Auto global on a

the So with for line let’s up open that, Q&A.

Operator

first Thank Tamberrino you. of of Goldman the question Your Instructions] David comes from line [Operator Sachs.

is open. line Your

David Tamberrino

morning, Great, gentlemen. good

Kevin Clark

Good morning.

David Tamberrino

it organic market, question is really is got by pull-through, is First growth you OEM is over can driven what’s forecast? I of us it fourth quarter, market it acquisitions going really to pure that growth in think on that, choice? slightly, much your raised driving And your then take improved for versus rolled just the rates, the into that remind customer be is how

Kevin Clark

Yes, you mid-October, a the will $XXmillion first don’t the or why on acquisition question Winchester you QX then know I I’ll fraction that. be small, – me so first runs should quarter, fraction closed take David, so very question. business your roughly we that think of let very in and – of start

both of some as the multinationals. say As the China as see really high-voltage you of within the it’s I new know about I launches as number the particularly launch programs market, safety. clearly, the the think across active - penetration well discussion, lines new locals in to and in have as it I relates a the talking over we’re in we the it’s to and would on of where strong growth well both sort around regions product China growth really that really that continue in

David Tamberrino

Okay, that production conservatism your and the have is what confidence obviously you've raise was earlier it growth year the seen unchanged? and you're again, you revenue, that the in because but throughout or global do just there year, you up something the that wondering basically different market down, to seeing gave coming just the of going

Kevin Clark

down. working say we’re we’re who’ of you we’re of customer just of some at that more looking who’s up, schedules, would out it’s down, s in math seeing the I know and of fair safety pulling, Solutions as active Yes, part coming vehicles that’s pickup as & of that the we've business, what's to got, one every X.X got we've relative content electrification on out particularly with Power in Remember, market amount Signal a business.

it's sort above lines slightly the of are sort coming those really So expectations. market of or down, is at while product

David Tamberrino

Understood. that on next I fit a a of you understand the, architecture, win business was wondering it that long have in but place, it's of award, or on. some able you for already followup story that if for you to is you you program Then was you it's it were are is the architecture solutions as just to if that a step allowed the term to you a vehicle a satellite Controller the have as provide win to continue from re-architected for partners, of result the OEM just in if vision development that in validation smart two next where evolution vehicle just already that to the that the Zone have my is your this that awards advanced trying place?

Kevin Clark

OEM. completely with a it's separate Yes, so no, David,

we're in the more is and competitively the next the to future. as trying think see domain referenced continue XX in industry of And though well step Zone the to evolution again validation Controller, it's We further positioned. smart awards direction controllers would we're that vehicle feel and what So you'll the the architecture. plus in drive headed of we in as our we comments, we expect, it's

David Tamberrino

architecture just currently Okay. - you there? is And more and satellite complicated this then more this is than have that the out complex product

Kevin Clark

a controllers a domain the the of satellite various a - should part actually Well, it's it's you what operate. architecture, it's consider it's to - part enables

ultimately the part of solution. it's SVA So a complete

David Tamberrino

Understood. you. Thank

Kevin Clark

you. Thank

Operator

of Deutsche question comes Emmanuel Bank. from Rosner next Your

Your line open. is

Kevin Clark

Good morning, Emmanuel.

Emmanuel Rosner

Hi, good morning.

around where half goes XXX little point of of points. first in biggest half, question walk, sort walk size first very of us a is you and view, could my production obviously So function high half the obviously stabilize? performance, buckets? give to that bucket margin of being between dimension there is as is us now level And terms expected able catch second it basis to strong lower bit Could a you ramp-up around is what the or of actually anything from volumes the more of the color up in the and second for mainly in costs your

Joseph Massaro

Yes, hey Emmanuel, Joe. it's

go me Let through here. bit a

up. there right, you're a certainly ramp So, is

that manufacturing think the when performance, but obviously talking we I as of categories of savings, overhead cost include well sort savings generally cost about our other about SG&A. line, talk also the as efficiencies, some material hit savings

up. is HX So in really number a you're material to you right, step manufacturing performance and the if bulk things to compare significant of HX that of couple about, on think its efficiencies. A it's face,

If had week you OE that totaled half year, inefficiencies back closures, they for closing of plant remember in when million million. were about from unexpectedly about a of sort last $XX two, $XX or from we the

a million issues. performance performance lapping over to little We So of under about a $XX think $XX our the sort in did first million $XXX - about performance is be $XXX million, HX of about HX, about if that is little going million, you half. increase of that

$XX period X-month that to something got to sort achieve. if but million capabilities accomplish about work which We've to step-up of our within So it, is $XX is million second going higher initiatives have look number. from you at our and perspective, over we to additional that have to you know of performance that's obviously a certainly and half, running we're achieve at a first to we're half

Kevin Clark

year so think natural also material than performance the the the a Yes, more cadence of tend historically, half, there. back of the to you if half first we have there Emmanuel, manufacturing I look year, in the is in half second

Emmanuel Rosner

And helpful drivers your essentially business, color. wiring would the clear was smaller on competitors then giving the some are reductions, And from business, fairly I competitors, on from not And one actions environment you and know, not you? curious, your seeing what or your just I’m if question different of of from one around they the competitive making and price wiring second overall smaller can outside. have substantial be an you the that's your noises perspective, too impact a just, was are harness are okay, on

Kevin Clark

Listen, Joe and you I on Yes. think, an through the reconciliation you on update walked gave based price down.

you've So, you know the - ended our question in and quarter, to markets, X.X%. Yes, regularly in with environment consistent get that we the be heard - that or response the X% ended you the the our would We're outlook pretty we asked challenging year will tell industry discussion. tough pricing respect roughly underlying We X.X% this sorry, is and to the a really discussion a hasn't we always I'm in changed. you've and we're range.

from price situations competitor each different each may but are affecting as the to tough - a market know, be you dynamics they've just always been. supplier price, think, standpoint, I overall have or continue

it's flawlessly a can affect and wins, customers validation execute launch we major a have market? to you're overall on And the with that value bringing and competitor you that programs what important, year it bringing view tends day in and operating bring, have will deliver the the of like Tesla our of those we wins the basis you this at deliver to technology a and bear As technology global customer. we're to to on on can end the but to our the XXXX be be our and to the most attention. that flawlessly that, programs the execute that's relates, I we competitor, possible, guess

Joseph Massaro

thing like side and are distant really a SBS of with The that, electric the when think Emmanuel you're up about there's Obviously, add Sumitomo of who in Yodakis business, the [ph] know global against [ph] the specific I in builds we're that most bump business. business you I'd talking there - win bit about. KSK is level competitors, the right, of terms are third, really that of on type think are is systems, that a and think we to a to on than competitors electrical world, for they distribution focused only us there our at like who I competitors platforms, or distribution I'd are that complete think I'd much different large

Emmanuel Rosner

very Yes, you. Thank Great. that's helpful.

Operator

comes from Itay next Citi. Michaeli of Your question

line Your open. is

Itay Michaeli

you. thank everybody. Great, morning, Good

question you it I a give look in half market QX perhaps about more so seem growth guide. below the the China, that the on drivers that first hoping year. like Just the program, back a does of there share and the does of original forth. accelerating was had the in It you'd us was little color timing,

Kevin Clark

comment. it’s It's hi Itay program Yes, Joe can timing. and just Kevin,

back versus growth if growth QX the continued So launches and an outgrowth you at half, to year in the the acceleration and an absolute strong strong, the look the market of back in incremental half half of partly due year, revenue you'll but QX. see front continued

not there in experienced time. retiming this little that we in a of have there's cancellation programs point bit programs or of seen movement So any but at incremental of QX,

Itay Michaeli

Great, make Slide XX, correctly. that's question second on I I'm sure helpful. then just want a it And interpreting

coming lower to the the half some backlog beyond? even suppliers, business, margin a the production and second you're see experiencing than bucket, just curious volume you base talk accretive saying and to in about and on are in the content the that backlog because the pressure, declines effectively is how So base the that at bucket be your in business, than going more you'll

Kevin Clark

we and QX were with and quick always very down XX% in XX% historically we've that margin what had seen, coming Itay decrementals as what production to. was the backlog capacity guided with and cost we've sort in structures, somewhat were higher out is No, to adjusting we've we coming and of much consistent QX in would with have decrementals that consistent line of expected

was So and dealing that consistent it's where of the to going coming again, the sort of look the business, with, it haven't seen we're you capacity we business profitability the call cost out of when with at I'll existing But thought with the certainly what impact. structure backlog, very be on side.

Itay Michaeli

Slide to to kind but and production volume is XX ties volume correctly? reading the yes, difference just Yes, more and that and between is, base business on that of the content clarify am or I not production backlog

Kevin Clark

market, would make growth the try sort the more think a production, out more of then market it to call over I'll the Production it a what over there. or of in over coming vehicle content would play, incremental between as again, growth and has has just difference growth production of part market the volume Yes. content the large but obviously the we a of of SPS content be, to be market I I think role or market

Itay Michaeli

definitely That's helpful. Great.

Joseph Massaro

- comment. Yes, Itay one sure I I out just make put just want to

ultimately is the If the on we're you when profile at your look is we're profitable bringing business the that run the of the more profile than the of profile business bringing currently business of financial versus financial existing rate question business. on at we have, business our

as business Investor you have changed, standpoint reviewed just at dynamics, the So of Day the in we have with not our profitability it's June.

Itay Michaeli

I much. what getting very That's that's Yes, at. was exactly so helpful. Thanks

Operator

Levy comes question next Suisse. Dan of from Credit Your

open. Your line is

Dan Levy

margins to obviously pretty half question just that half know believe have maybe on are not that Thank I XXXX don't but into go morning. fair XX.X, margin is I in a wouldn't XXXX, or guidance, XX, Good giving on meaning Hi, XX.X% you're was be that starting roughly thank into wanted and back give you. your you to your of repeat so I point that start the why you. XXXX the year? actually a with And take XX.X% three-year things back high. your outlook the what

Kevin Clark

in we've talked place can quarter We've depending think in on programs a annual about be of year. an often I talked got margin as basis. time to about, on particular expand Oh lumpy we've margins

a level half have build year. tend greater through the thing think start to other and of year lot annual I and of be we over the them savings is, the the a benefit initiatives our and back from they material of QX, programs beginning programs. We manufacturing sort of then and in of tend to start with And program perspective. initiative the in

think with the certainly happen we will we one than years, are, to be the at confident expect volume hold fluctuations, in wouldn't we remain subsequent expansion for some particularly changes. Day, I margin but quarter there the So Investor provided it in guidance

of I preservation as focus have, think rates. is OI just the we margin the of things and not the other we dollars necessarily on may well, thing one so

So as can in tougher savings, we a even preserving look dollars are how to make cost sure those we market. we

Dan Levy

Understood. just market holding China, outlook, weaker just you're despite broader know, choppiness obviously there. your and volatility And then or you some margin on

just we'd this in the the launch and thrown the be think off volatility may other seen So, where has I suppliers is schedule for margin. something

to the that's that growth? you're we China maintain margin allowing launches to know volatility, of your business that but you you're that continued profit doing that and do? China, do is it to more in talk to being able know is it what or despite the in cost especially structure So just what importance And I you've vigilant able on you to around and that been your that launches

Kevin Clark

the Yes, I numbers in detail. through go think Joe will

we the Joe I comment of foremost, weighing to earlier as and income absolute that on and in first declined we've focus volume think with front dollars make the it. our been and has commitments operating in first respect China, made

are line have a it in on and vehicle headcount We've able a the entities joint in of control. China reduced which standpoint of we offset XX number to to and of which We're we overlaid initiatives own top decline. because some that of complete wholly some do volume production our there, management material ventures, declines with from of manufacturing

drive team baseline actions an a industry kind a standpoint, necessary just we to excellent done have OI has our and job of kind with job. OI from of coming about do a margin strategy, reposition of been the reducing an done business they've year a expected, ago. decisions the we can cost to vehicle made from what the terms standpoint. or the So two vehicle production making about They lower structure. a for Joe Joe tactical in the able than tremendous taking talk what production the comment new what, the and drive China the, to had level

Joseph Massaro

XXXX. with obviously top with I we're upon you hold in consistent you comments dollars flat now, EBITDA Yes, staying margin forecast, - with it flat dollars, XXXX the effectively to staying within I and of mean think there's the at, expecting Kevin's look think, right And OI rate, not on if it. our to I Dan know

last ahead talked ahead others lower to year - We get also I'd get right? on China in about ahead it. QX we've been of to and can. lot try expected. a as We of we I'd perfect production been We've but this focused as vehicle much were to trying it. of it down, like certainly being We than haven't of out calling were we think

started again, we're our point weakness a China the called the but that back we So at terms in we coming time half. down. perspective to than in see this this the anybody I'd like And from almost programs containment haven't perfectly, of think last - volume market year, started as in the to closer cost

at a think through Day on You I ready wanted sooner back or to this Investor going to know some, cycle, at were and the to talked all point later, point you get we cycle be XXXX thing for performance. know, at focus the the it. lot going other about to our in we We way this was, assumed

the that our XXXX, of for overhead reductions started now, some XXXX. basis So those talking in we're reductions, about the back cost

of it of couple stay I sort it to pace to ahead as some us being the us it's We - well. try of So point helped happen, keep think quarters help and ahead with assuming going over of has at it. last

Dan Levy

profits. there region visuals of Europe could maintaining another I mentality a as cross a the hairs, sort and just same downturn of cost the obviously, the the have quick in focusing vigilance is and and extent in you obviously, to, If is on toss a it To followup lot in well?

Kevin Clark

roughly Yes. word, corporate maniacal we've costs as Listen, before about we're our again you've heard use our overhead used XX%. Joe it and by reduced the us

of operate on we focused of $XXX how top last that very million I standpoint. and couple And SG&A the on years. roughly plus think over from a material manufacturing

we those that that our the significant positioned already focused the make we're and organization It's aggressive more of now to do, those things driving we to corrections is course to but cost will things out. more extent on are of light are in do downturns, DNA. So, flight a are in part need

Dan Levy

Great, thank you much. very

Kevin Clark

Dan. Thanks,

Operator

from Brian Johnson of Barclays. question Your next comes

Your line open. is

Brian Johnson

Yes, good morning.

the active Just about you question forth. very most profit categories signal be distribution, systems, infotainment, want the active are in earlier a that broader in of could attractive over there auto followup on which pressures when competitors in issue attracting competitors electrical are very certainly safety, processing so that in well on That's market parts growth the any and who growth.

are in pockets roll is, or of two less aggressively you around as terms those of not or three of example. revenue harness you the of and thinking in So renewal seek question kind four categories that that margin would in that are those the wiring business that moats things of for some and perhaps years, out defensible there

how ability how the so, And margins hold mid-teens the do to you about we think balance market? versus hold over the growth

Kevin Clark

be is including that is there I bottom we end areas Active sold we've like like, today, exit of like that that we Brian, think in and area you that Safety commodity areas whether systems point. tell consider we're would or decided any the areas the that that would thermal. you Experience. are vehicle at day. in architecture think a reception line displays the focused, operate don't or point be to I Those that User our we Listen, make Yes. I good

portion with specific don't we VIN architecture, the on and full that's optimize basis full-body the tough we actually a As do. really build-to-print harnesses Then think harness related of to of customized. sort it by OEs to vehicle business big we're is number I KSK do our work, where harnesses Joe we're work point, a building relates really to where can made VIN number a about

there work of players into who and significant issues competing customers, has translated very those sort in and cash price, the which it ability has think tried to profitability with flow. compete to to most but space, are customers of again challenges focused I And is I and had and on the this who think industry low and what to out which have translates with engineer focused into most in And translated ultimately areas, operating, cost. liking them complexity service recognition on complexity

Joseph Massaro

and a often driven in business. that again it's Yazaki, Active Brian, add Safety Global relates and only part moat Yes, perspective. we're that, thing Connectivity, to is moats of a out as of talk from it or the capability, There the about business by the side TE I'd scale, the level to Amphenol we competitive brain around capability. SPS

hard we against is a is would for we very on that but of those and the competitive, not who of short competitor SPS that's a relatively distribution remaining quickly. A of electrical lower point period to a business, We're of global they're part very capabilities only systems that business. we're set think part faced and be competing Kevin's provider foresee. I where cash In with big something going that time of compete somehow full and large there platforms, KSK the margin, quite deciding that attain flow others honestly capabilities focused lower duplicate to

Brian Johnson

Thanks.

so partner guess investment you own of? Argos Robo you to [ph] more major one but get questions, kind forward-looking the a of same business, at or timing, I want of, it We've crews terms two towards and separate sub in are Taxis. that of any business in pace their strategic also make like conservative money Taxi NuTonomy progress towards future seen of question into just we've yet continue XXX% sort Robo the is taking around on open business folks And time to seen two, a updates a pace about something

Joseph Massaro

part either in the network have fleet Vegas, but now operating the of terms Lyft only of list vehicles. the is Boston Singapore, vehicles now or we on in in Las operationally, network road, Pittsburgh, in dozens Vegas the testing is operating less, Germany, through in Well, of Shanghai,

X.X to miles. we're million up XX,XXX think rides I

And roughly that to I XX different hubs in XX ultimately Las locations or think XXX deliver Vegas.

prudent meaningful our and very operate reasonably though as on and collect you'll on XX driving, feel we've lot operate that well XXXX vehicles conservative to a is, continue start and revenues been and revenue to learnings. always mobility we to respect road to So automated see listen, with of, XXXX. some With we in the view in in demand

XXXX. technology from driver plan car the a for out purposes have is, current testing standpoint in Our in a

standpoint, a changed. return sense capital, introduction from With our an financial standpoint. from the taking standpoint, So most whatever view makes technology hasn't respect to listen,

As it as on deliver the you and talked doing. the business. about in we the funding financially, and today extent fund balance that's that the timetables to made business to we to that something capital investment We're have consider feel the the someone investment sense with know, we strategically to though in sheet partner we've

Brian Johnson

much. very you, Thank

Joseph Massaro

right, All thanks.

Operator

Chris next comes Evercore. from McNally of Your question

open. is line Your

Chris McNally

particularly much. didn't on thanks quarter, first, you that down production, the little discussed by for Two the about the Hi, in little for the think in versus AS&UE, the worse, question sort the seems have change on a actually just SPS little about It's first the is we change if got a Hey divisional you so so basis it plan the guide, and if by can you, maybe the like just bit component same the bit a so the assume a questions, guys. obviously of bit half the then was but think And a outgrowth change, but more organic pretty we mix than to good. outgrowth? we there bought just X.X%. is benefit of production color,

Kevin Clark

right growth systems your coming good I Yes the the continued Chris, revenue product out from growth high-voltage, connection to have line, is mean business, SPS year. on continues the it HellermannTyton a

is particular have a did AS&UE a take a not penetration market there a it's us over OEs from We it's On it's that not or platform not given specific headwind driven, it's very market perspective. trim of growth production of platforms. a a little actually rates but have vehicle sort trimmed a bit -- that no, has couple of not of really not very region, even production

all that type is within is say of There of product it no change particular would in is of expect in I take market, there what thing. is you There But kind cancellations. no rates no this would outlier.

of really think I tweaking around cycles just production and sort launch it's volumes.

Chris McNally

But it an question, second half, Perfect, then second to sense not the if sort the of add of plus margin it's we the we the get sort makes annualizing starting X% And full investment, if here. finally get I dive if million. can Safety. sense. seasonality pure in because to that of just mobility AS&UE's up the implied of almost you're indication to totally finally it's makes where for maybe $XXX in it's even -- XXXX. XX.X% we margin lapping the little so the bit think of for And We're pick year, you detail gave is spend, a from the the this some on Active incremental margin

need start start we Could is your to lapped XX% Mobility? next you to typical finally because end about we do mobility new XX%, level and type market XX or to that we that in incrementals finally the investment more the over talk XX, months, the get about growth can another on we in could make nuTonomy just step revenue think whatever

Joseph Massaro

of XXX step Yes. significant and up be certainly the we're saw spending up. Could or don't certainly couple what Right? next wouldn’t it XXX, XXX It We've need foresee significant in the from a look and starting to talked 'XX be sort a step of step or into 'XX planning at the obviously that, Mobility but We times a you process type up. year.

somewhere average the at do view XXX of process. that go of Yes, between depending moment, sort consistent on to our the start So we around planning the as or you're plan to sort that's start where we where get with you level. through to the us, are calling XXX

perspective. of On particularly we margin on call track XX% Active AS&UE in coming product Safety year the low broke in Active expected this in an where delivering for a what double-digit, lines, double-digit be to them teens this ex-Mobility margin AS&UE or are I'll exit margin from QX. high low sorry, exit to out We're underlying Safety

seeing in think develop but things. we line that expected. continuing do those product the we around And we'll a of decisions new we're, perspective, in are we investing in have around that seeing as we're be opportunities what in Now, are business certainly we Pursuit's, as what is the margin have past, what making types business wins, to makes sense, we

Kevin Clark

I Chris, for versus Yes comment, mode active it's the about I margins to the echo think trade-off near-term want all just opportunities widen safety. Joe's longer-term to the

trade-offs that those bit those programs I drive consider returns - to we to think get incremental are margin to and in will caught the, the that need have up additional you obviously expansion. the could incremental a timing. But are business baseline

resources for of the level one, number minus to opportunity but scalable safety plus, complex know, global a and that at have programs our expand be to we're sort talking you as the the X of the that know advance you are awarded about launch to moat, investment to these near-term that competitive level programs. and programs X those global develop programs, is margin active awarded level And versus we'll right and those our evaluate something be rate

Chris McNally

at for high So to extremely continues be ADAS this essentially clear, of I if rate will mean ADAS high, E essentially XX% continue. plus, RD&E the

you'll an be it because there, period lapping you're the is good incremental investment So margins growth particularly complex because the Mobility, still get but programs. will for

Kevin Clark

continue. will Yes. RD&E

we we of the as growth that OEs with software vary of little is in capability as to think I that with each much and how OEs. new of a leverage program. part much reuse existing can systems new much How with obviously a much comes percentage as process on is a within craft as bit of the programs revenue will on

Chris McNally

much Okay, it. appreciate

Kevin Clark

Chris. Thanks,

Operator

Thanks, Chris.

comes question next from of Your Wolfe Dan Galves Research.

is open. Your line

Dan Galves

Thanks. morning, Good guys.

Kevin Clark

morning. Good

Joseph Massaro

Good morning.

on guys a and make half, China bit the first, you like demand second first seeing below, as get incremental an forecasts seen second retail though we've other good of basically about that little in You would kind something have half, of kind production the that numbers in are the a even comps a guys production bad as easier are China bad your half that as the bit quite looks just calling real been as weakness

Kevin Clark

the perception China, in completely turnaround time China be And spent happened aisle not interacting out of Yes, at the from not the see inventory facing like some point that for can the China shake lot I production pushing think really the operating in it's balance a although a based we to hard. near perspective going that in perspective. there on reality market we're today. is an really our off Dan, mean volatility. our isn’t but of I schedules term if looks what team in with management There we of just a We're see consumer really at clear the think really the balance of just that demand year, time. government this is it the and not we the

Dan Galves

Okay. Got it.

Kevin Clark

to Joe, if you it. to want add anything

Joseph Massaro

moment. lot late our looks lot like before, and the these like a point activity with of a I'll run production we've it at, rate seeing bit, help QX and look starting vehicle to not on Dan, of numbers. lot we're tends to vehicle be fundamental say, a And some philosophy QX, but that of on for QX office proven some QX some No, until you when little these just to at otherwise talked Kevin's looks a just, launch reason change should there's ask

Dan Galves

on Tier looking the And it. just the of if Are customers. in update the give can X update X you of if some network? quarters us China, just got China kind supply you health that, an six there, on of any in seeing could anything on in you following bad noticed Tier or chain row up the stress Okay, an towards us pretty you've give health the of a globally,

Kevin Clark

with least exposure the it's customer players, with top have some with very, X very, and costly OEs. minimal of a standpoint, XX% smaller revenues something standpoint, at we we roughly our from from some maybe there incremental then Tier network local local pressure been JVs watch think very but I X or balance XX Listen, a the the has multinational are of the

from we we're So again, an how a it's it's exposure that something are we from real but so standpoint, a, risk any - watching profile any, closely. or very people but from closely haven't change watch acting seen something

Dan Galves

I it. lot. much appreciate a thanks Okay,

Operator

comes Joseph Capital next RBC of Markets. Your question from Spak

open. is line Your

Joseph Spak

everyone. Thanks

about and what of I hey And Europe. last talk think quarter And you companies of of on then. guys like question, update saw first sort earlier Any in quarter seen think obviously sort forward? some from or other side the and you slower since that to were to about of as we China sort we've certainly the of first launches this the Kevin ramps I of talk go Joe. one The

Kevin Clark

very May this your that earnings at that call little in but meaningful to shifting in point - would - nothing would conversations this we time of our at at point. really in nothing and bit small A China, small meaningful Yes, since in nothing May, point. attention raise programs

Joseph Spak

Okay. housekeeping then that $XXX sort I just it sort to EBITDA of a on down little prior. commodity and one, copper I Is think your XX two, of million actually some coming was were helping guess you pass-through? I think that clarification like line, And the pointing of about FX maybe of is on of a that but bit? and hit because to margins that sort And

Kevin Clark

optics, it's just really doesn't rate through. because it's copper margin the It's flow a minimal that hit really pass-through, Joe, Yes. very OI.

all to - passing It's way, it prices, lower you so optics go way, line. in other last up, for could FX So XX have but adjustment and year, it get extent in the captured that that we're in rate or this through million the margin you one it's commodities. and copper as ran for the we year him the get

Joseph Spak

Okay.

guess So it's resins I -- really it's more and and FX

Joseph Spak

XX margin we It's yes, in but FX dollar again resins. - or se a FX million rate so and Copper full optics, is the that for is not have year per and it's the it's hit. FX really

Elena Rosman

EBITDA OI. million the And $XX and $XXX of impact million for of the

Joseph Spak

free did million more Okay. cash three $XXX quarters for thus half like is And that in just of it flow but guidance - generally maybe looks lastly, buybacks you weighted. your far, your suggests the second

there a is bit more there? So opportunity little

Kevin Clark

to always remain do. will opportunistic we We continue as

Joseph Spak

Okay. much. Thank very you

Operator

of Merrill question Lynch. America of comes John Murphy next Your from Bank

is line Your open.

Unidentified Analyst

for is everyone. This on John. morning, Good Alan Smith

First the question Morning. smart around

with been OEM awards at the you're the First landscape. question say development pretty on of clear, this think that customers competition of as architecture, vehicle to with in your among fair competitive then some advanced it's the look your year smart seeing traction top ahead well recent seeing controller front you've as on of I And don't fairly or on Is fast you you you're awards. awards. some it successful are following peers the

Kevin Clark

positioned the Listen, think we uniquely we're both and talked our history… in having as active capabilities we've capabilities portfolio about and product

Gap] [Audio

anyway. system similar being in architecture that and as time over electrical SBA

Kevin Clark

a leverage it's in about a it's areas capabilities higher of listen, ultimately number made the in failure. taking engineered is think talked to, will of back. step Joe a VA components I being of one Yes, exactly on position, cost well of similar failure lead competitive a We first-mover to having the areas safety competitive active competitive solutions and benefit are take the driving think to in areas those a position cost it moat in and each that the number ask ADAS high around ultimately in to leading there's probably leads like value SVA the charge and our a ultimately view, we combination SVA not areas us each advanced obviously of and in around where cost in competitive strong SVA position in like mover active leads first one puts ultimately leveraging moat and in in low in . to high, have real User systems, The you leads high like but but Experience add safety and with having think

Unidentified Analyst

second aggressively progressing push be Korea be some been event sped think Great, or escalate? is this countries structural that's potentially side, remind friction tariffs tensions ,China in much us more very and up realignment and footprint macro you question the to trade that how actions that could US other your helpful. as the trade transitory, more and on And you about can may

Joseph Massaro

to that Yes, way border, million, us lower the so hi. we had validation up guide see the tariffs, we a less quarter to tariff in help about From X impact on be side the by the did lower in progress. below on by avoid $X we'd the of of in volumes saw tariff year-over-year We move unfortunately make completed the Korean were remediation but part. for so little continue on part QX, obviously million bit a from on that's bit a but tariffs little and it's expect across with third customers the most of just the some things the to remediation it, best we of plants traction end we

down tariff manufacturing we'd obviously, XXXX. XXXX. eliminate well do original tracking portion we that certainly, try more, probably good into is 'XX wait for to So work like didn't Korean we're XX start working going got went we're to feel more a if remediation million particularly to a that with so; right all the as to but But plan. it, XXXX facilities we Again we according didn't, hard in away of of it's to positioned to do on to tariffs more see with certainly

Kevin Clark

Yes, to to they're place some it's going important to said in these going we Joe's I you for quite transitory don't be them think point they're view as time. be view this we before,

fast a taken chain that and is as a a said, I sourcing we as from other say do we've and we're supply we'll So, permanent continue standpoint, from as moving action to from can. manufacturing Joe would

issues risk the opportunities think front biggest well in position to it and sources China up actions situation. our though fairly the their balance made a that get the is to what taken of We and in taken get current possible. possible a longer we've a TAM likely, we've outlook we worse. the like off have for don't is with it be IHS we bit It worse. The it's in is are plans and schedules event as customers think operate you discussions the of in customer feel term, we feel quite as as One conservative could

On we upside. quarter side, some could the flip and fourth be overly there be conservative the on could

Now in we're not planning way. on it. We're not that operating

it's decline China our the a of XX% which appropriate But for XX% into .Yeah. a of feel the We've based is just in China still experience QX built years XX down in stabilization. got QX. down outlook of as Stephen, amount in our on into of conservatism I have year, think our we definition little bit though double-digit we

it's of QX was where again the I fairly it's, original back your go the $XXX little down big a number half in around annual stabilization the in it HX. we and an to I on a I, performance numbers year million. when but obviously significantly relative versus it a QX, maybe at and less look performance So guess still optically round than in question of back you the the have HX response, question numbers,

off Some plant OE the of year from lapping is the of million plant closures. last closures XX that issues performance

by were get half X offset year got scheduled million. OEMs adjusting a with If longer from they perspective very last $XX that you or a into cycle that term back we closing to for when the was hard us that started sort for of week about changes plans of inventories recall, versus a

performance half. if first million out. XXX take you, in comp looking you manufacturing that if We so So effect of of back out take about that year-over-year half. in to the the We're the material at XX performance a did

something, right? a is but our given increase over the So, do, initiatives tend months do, a be which things while. manageable just on. the on It got it's we should it It's it working you actually, to for we to be six next but know $XX have isn't million don't a In something We've not We've that of should initiatives view, XX within lot be. our to higher, this been back-end loaded. how going work.

Unidentified Analyst

Great, that's you. very helpful. Thank

Operator

comes question Kelly next Your of from David Jefferies.

David Kelly

million. for quick it as I'll keep squeezing well. keep And it. Thanks I'll

also? at safety X the I place Just Level you X ramp much on Level Level that mean, this how is And bookings. X mix taking is any some to much plus point. Could the ramp. provide there of versus color on active

Kevin Clark

level versus X one have X X don't a programs, at between effectively scale actually. Level level Level be programs are of level those Yes, number the of skill significant and programs. of anywhere David those Xplus front can I right A number X level in us.

level the kind So sit them to comment of level assumptions twice. can related framework Joe to level revenue within of of on versus I'd that bulk a say to sort one

Joseph Massaro

if out. the today type of think in we're systems. the what today. the today PSA whether X, at I Board to you'd see cars way of the the you to Kevin's booking, tends bulk the level level to just what why the others. we're expect, at some is revenue as when in minus It's this point, producing That's be it's X technology you look level rolling types The Yeah, things Right. of

systems come be Those cost the effective the technology is way to to scalable in have tend for to like for of redesigning have best next ourselves the you're and this the couple most to in platforms over put what's that years. and to levels the where systems tend systems. appreciate Those OEs to vehicles so be bookings like across not of moment at optionality, and across launches

David Kelly

thanks. And same quickly just Okay, the great, on theme.

also is that bookings, in up the automotive Looking mostly this non-automotive side anything or we're at engineering point the quarter, business. components which still ramped there call out the booking to at is on strictly

Kevin Clark

to industrial continues continues grow. CV and it I think I No, to business was, and our

business book. and we to the those Well, up continue quarter book was We to XX% our XX% or levels. CV in to continue

Our revenues. before X% of you was go back a if at was ago, couple years, is we back expectation few even It's CV industrial less at too years that not non-auto finish X%. than and XX% that long go a about XXXX

that progress continues. So

Kevin Clark

you. Thank Right, great.

Operator

Macquarie. question comes Our final from from Maynard Um

Your line is open.

Maynard Um

Hi, morning. thank you good and

electrification you OEMs I how your it changes meet need but you there make for bit about this emission about need stringent from talked any and acceleration programs, You an is the in know question. think a transition electric or centers towards do from secular if managing acceleration have steeper visibility transition be of incremental. a are mostly might meaningful there towards the ICE to you more is obvious an little But to electric,

Kevin Clark

good incremental have it's Solutions portfolio manufacturing No, more extent is there positive better. content full overall margins, leading electrification there Right. the higher that's is very and is can that that competitive be more [indiscernible] the something electrification capacity and we facilities. that’s & actually electrification attractive, But more means signal mostly for so I electrification and the within is easily power segment think question it's something us. at To Power so our a is it very capability train again

itself CPV for BEV electrical what have engine from say be an the going EV not from content BEV. going by connectors to detrimental do actually combustion are to lose actually internal we internal additional on offset a We on

is is content actually So EUV slight to per vehicle for from perspective, BEV the to be positive ICE neutral us.

Maynard Um

you data, on talk about side. then new help does burdens the do the And sharing AV your on playing great. this AV for kind of sharing suit industry any reduce the looks can like the of think following R&D AV side it's data Okay, scenes the Aptiv? you field levels you with And strategy, this and

Kevin Clark

One the be out listen, be automated systems, or development the it there, whether I our the form, anything it'd from way, accelerates perspective, automated three it our safer, think data. players two makes driving. whether virtually all be bigger, perception architecture, are shape that vehicle of the makes market world No, it'd whether customers of in some driving

pool. So it creates profit additional

as out the we as to as for a there, development accelerate So positive. the view extent other it ourselves players can we well

Maynard Um

Great, thank you.

Kevin Clark

you. Thank

Operator

final question. call over presenters. gentlemen, to and I the our our was Ladies now that will turn

Kevin Clark

a We Okay, you dialing appreciate nice day. thank you very in. much. Have

Operator

call. conference This concludes today's

You may now disconnect.

Aptiv (APTV) 31 Jul 192019 Q2 Earnings call transcript