call Thank morning everyone you, today. to Brad, on and the good
review Let's performance. on of X begin and Slide a safety our
stands Our quarter TCIR, case XXXX. total incident the rate, at second through X.X or of fiscal year
Their make is safer. They most system knowledgeable the our it success. safety and about our are Our and are program. of workplace know-how face for employees to our the promotion essential the safety engagement of
indicators. continue our measure our see is we improvements leading primary TCIR While to performance, in of
has XX% our injuries, which injury year-over-year. our instance, For frequency first-aid include total at treatment look when cases, improved rate we
and have such of near by safety addition, proactive XX%. as reporting In stops activities increased misses
and safety will reduced we have workplace. involvement ultimate which of deliver in of our goal injuries, of ongoing continued severity a a has injury our emphasis in a systems our direct culture We're employees' focus placed on engagement. confident investment X result is The resulted that safety improving on our
of Now the let's turn review performance. a quarter second to Slide X and
results growth a of expansion second growth. we also past generating consecutive SAO. level. ability as sales our our marked quarter consecutive deliver and at to backlog at high execute record drive This earnings quarter year-over-year performance year-over-year earnings Our It XXth while year-over-year quarter quarter the backlog continue demonstrate consistent of XXth to marked and growth,
customers gains requirements, this share markets. help solutions is expanded end-use across address Our driving critical performance sales opportunities our and and
driving product This at to which of are we operating record quarter SAO, richer income. operating consecutive marked the mix, income second a contributed At second performance quarter record SAO.
In is operating This Athens addition, quarter shift, during productivity benefit margin and which the SAO adjusted our the above margin was fifth second the XX%. adjusted our improvements mix resulted deliberate consecutive operating in in of of XX.X% facility quarter.
sales end-use the In year. year-over-year XX% last increased to up and and Defense Aerospace backlog compared was market, XX%
backlog and almost portfolio, platforms. and demonstrate sales Defense performance of strong in submarkets our end-use all Our presence attractive participation Aerospace broad solutions the market on major across our the benefits and
and we high, of X revenue, increased company in last year. during end-use total second Sales to accounts activity In the received which quarter. remains X% addition, medical XX% approximately VAP dialogue and market, customer for additional Athens compared at approvals the
continue to solutions Our demand high-value capitalize strong patterns. on
that partner critical will supply customers. our chain our significant the position for be in strong solutions are touch industry, this on long-term later a critical and areas provider our in business investments more emerging we I and will strengthen our subject as presentation. Lastly, will core believe in be the of future technologies. to These by strategic on we to making our continue building committed investments
and Now let's move X end the to Slide update. market
submarkets. year-over-year chain. Defense, development at and growth aerospace and XXX The year. supply grounding is the to MAX major compared for is production a our This ongoing increased aerospace hall XX% first last recent entire and of sales where Aerospace in Looking each
not more shortly. detailed we impact. on we're situation, near-term immune comments this While navigate provide we're to do certainly the believe well topic will to I positioned the
Moving applications. were winning up to was value primarily are customers dental end-use sales unlocking XX% and for to bring OEM high the and solutions submarkets. is due opportunities market, share, our as Medical year-over-year. the where incremental our relationships growth It our on clear orthopedic in gains, This deepened value to share we're significant market
strong nearing across orthopedics, on ongoing Capacity strong us completion, are allow our market. dental. further and to for We cardiology this expansion forward end-use the which will of indicators applications many see in projects at capitalize including demand demand see Dynamet we submarkets,
In up the light-vehicle compared X% demand submarket, content North year. to and the temperature In end-use resistant America increasing Transportation is alloys. for last market, high there local sales in were
are that We solutions specifically increasing strip capitalizing patterns our temperature with are these engine to on high and bar performance requirements. demand designed address
continue revenue. oil free our sales operators to down accounts cash for rig reduced compared year. generation last and and directional operate total energy gas and and horizontal sequentially Total as significant the gas with power XX% to X% have oil fell and Now count oil a North is and to year-over-year. XX% American and declined company activity, moving and idled in equipment market was gas submarkets. only end-use America North The market of flow. The drilling focus The X% on facing managing energy headwinds submarket
the North we Amega challenges the actions and business, our restructuring in America, at the during facing initiated business Given ongoing quarter. oil West especially second gas
reduced and is sales portfolio prioritization our It In and consumer sales market. in to be to volatility due activity by were further impacted end-use to higher we our solutions. semiconductor the important submarket and continue note shift year-over-year industrial the market, that also the industrial down into revenues value as some production to mainly XX% declined infrastructure
MAX to Now X, XXX move where a you update will on let's Slide I discussion.
we the chain XXX the of that several vision, an mission-critical our worked several provider chains advantage. in be we've as MAX breadth solutions advantage past last is participate. irreplaceable disruption. to years, and the the is products strategic our preferred solutions to through in the strategic partner today hard is That Over manages of refine the supply evident which a I've times mentioned portfolio supply a
More than revenue which, our the is and is you end-use generated attractive know, Aerospace total market, business. margin an half as from Defense of
we requirements. of that that provide participate high end-use key top strategic we However, of such and end as these Medical, also solutions every in Important specialty value Consumer other note alloy and one the pyramid, application performance address markets end-use in X% the critical Industrial to products market Transportation. across
to we commercial aerospace our platforms. submarkets practically and participants. and differentiator standpoint submarket participation diverse from exposure all We on Defense rich other an with is In market, such industry fasteners, structural chain and when believe our participate in Aerospace important as supply defense application an compared engines,
quarters. As the provides MAX breadth of next a XXX development this the couple it's current the issue XXX partially flux. state that such, to clear to mitigate opportunities of recent disruptions portfolio the reaction in that supply remains over as said, the in such With MAX market, chain
production how working are XXX material halt our production their We reaction impact evaluate with ultimately closely will MAX customers the plans. our understand needs the to to and
Of customer course, is every different.
are requirements. I'm news know clear, certain speak customers spares support. customers the a in referring certain need to we and are We've of asking reporting engines, high projected spares, which that of also adjusted service negative older their for need running when instance, some latest seen anticipated for for degree be and For to still I urgent the To spot longer. and already
look readiness. as and how production course, off they a be want this still rate are critical on. many to its balance the supply capacity against is maintain easily requirements turned effectively This complex evaluating and chain there to concept they need Of manage are can production proceed participants to near-term reduced chain who in supply to
not Finally, recent ahead, did there Having they reduced are news. requirements. anticipate expressing are built participants that near-term now the
us is due the manufacture that and the ultimate That specialty XXX impact Carpenter materials use MAX customers, takes turn, our anticipated to us to who, Carpenter of the in provides material Technology This platform to forge question. Technology used specifically disruption? in to What pound application more of that and parts to that used which components. identify are ultimately of related it be or will sell production difficult the makes we for in. aircraft material each
can and actual are on in aircraft are we our certain based platform, supply where as believe customers or as customers know and well what positioned portion assumptions lagging to make might chain they each their is of leading we However, assumptions. the Those our allocated where demand. well business be
SAO With in segment today, the operating that quarter our to third what million framework the we on in impact of mind and be $XX net for approximately we income. know based estimate
other In of points is gross it estimated varying actions. a The offer few but impact of a any time a me exact, represents mitigating average an The Let not rather estimate estimate impact is our is financial clarification. impact less range net based number. on the assumptions. estimated of words,
be may periods. estimate And finally, is not relevant and this QX to for other SAO only
Assuming XXX SAO QX. is this disruption. quarter to be SAO despite for estimated to delivered operating result net income in negative record MAX in the of impact, be The a projected third results the similar would impact QX the
I strength SAO. earnings think that of speaks to the
to operating made apply but $X.X would Obviously, exercise more impact For well. we million mitigating as million impact I the our estimate PEP net We higher, $X.X that same less clear. be fourth have be expect just is in quarter and PEP gross segment, segment we to opportunity actions. the income. in QX will estimate that The between clarifications the the the will also
it net That third is communicated what impact for similar quarter. fourth being to quarter possible the the said, just is that I
to reduce impact. As disruption will we I is we the mentioned, actions are exposure referring net the anticipate of
markets. well In limiting Defense the This applications Aerospace capacity in cases, seen demand due to to currently the MAX our firm chain be markets, aerospace in firm our last have sales have actions other demand, near-term we non-XXX situation. be high-value for as Transportation, may capacity Energy some years and lead ramp to a Medical, the been and for long by end-use supply able backlog. redeploying our more include high-value times, including broader believe orders several the market our the orders other Industrial Consumer in opportunities over aerospace as markets. end-use flexible areas production Those to the ability include and across digests in redeploying XXX capitalize these on We in would we as MAX
we development, long-term the is strong aerospace While major continue situation fundamentals XXX market. to chain. a presents certainly challenges the overall XXX aerospace situation underlying clearly a in ongoing of supply MAX believe the for MAX
many believe are than positioned companies we However, situation. to we weather this better other
We will negative XXX continue initiatives MAX impact the in contact at partially to of evaluate the execute disruption. with and aimed close our customers situation, offsetting stay the
the to over it turn financial I'll Tim for review. Now
