Bradley M. Halverson
Good thanks, morning Well, Jim. to everybody.
a raised all across was higher margins, the it we profit stated, sales Jim with outlook. and and improved As strong regions quarter
and operating the cost Our commitment and focus to team's in profitable building using the evident discipline business on growth running on execution restructuring is efforts. the model our
Sales quarter and of slide and from in numbers. quickly of revenues and quarter our revenue terms half the fourth last sales sales of I'll through About increase XX% billion demand. turn from the XXXX. in $XX.X up growth of strongest was year, Let's the of higher X, were end-user walk since to third the volume quarter-over-quarter
from absence of million. inventory year. was favorable $XXX the mostly year dealer occurred over building inventory last increase a dealer year, reductions from half to by to third Dealers inventory favorable million net not significant third to full-year $XXX as billion, quarter of quarter changes due the a run other in dealers this compared of million during change inventory of reduced dealer this dealers The The inventory last in inventory was year a $XXX the change $X dealer reducing that inventory. to
$X.XX dealer were from sales volume are largest the end sales the up share and inventory XXXX the note to second in than lower is based Higher price to profit. quarter doubled, $X.XX per share inventory quarter. was historical $X.XX. to changes favorable increase months realization in $X.XX. $X.XX low the to dealer were in and Adjusted are favorable, that per levels drivers the of to at of it profit third terms from on Profit more than important $X.XX of While up
slide to Let's X. turn
profit from versus a end-user sales was largest operating a with to quarter year up Positive inventories. areas. was to higher half from was change sales profit four in compared change of several $X.XXX dealer Third ago. $X.X XX% increase profit of operating to and ranging higher billion. was changes million a as regions increases from almost XXXX, half $XXX billion result to About All came The revenue XX% geographic favorable saw the demand and from volume.
America mind new increase some Dollar in in favorable in Latin highest the off for inventories America. in versus North end-user aftermarket cases, inventory as as ago. quarter was both third sales dealers especially flat as equipment in very quarter the in that, primarily inventories was to a and well base, to reducing parts this keep held changes in demand a low However, higher America about dealer year North due
as Price demand the primarily $XXX of the of of half higher due in to absorbed, in broadening favorable increase equipment. period was costs Variable end-user higher strength favorable highest The million increase our About increased million saw to improved also change Construction sales levels. to in for Asia/Pacific manufacturing due construction Industries. to due the to the favorable many second dollar the was in countries with in impact quarter. other factories costs primarily region. were largely inventories $XXX production support China
As turns primary in focused we improved we lean inventory and principles, the on ramp segments. all three remain up production,
levels, are we in reduce base. to with we As production times working base raise low and lead ramp, very of our a some supply cases, off closely
to efficiently. quickly, is but getting customers Our product also focus
However, availability we improving on are end-user to focused meet higher demand.
material the quarter. several time in increased first the in cost years, For
XXXX. a put Total costs in of costs you incentive moving the our steel to in targeted reflection We the actions $XXX achieving cycles. profitable higher a to million. pressure the future were to third in costs required is $XXX million Restructuring period higher making continue. accrual, actions quarter increase on while growth. exclude profitable to about to control less volume. the flat by drive key costs This are were expect through that material costs has the sales short-term despite in us million quarter, investments period cost forward. discipline costs structure areas When than continued cost These enabled important remain higher flexible were $XX Restructuring significant of
the want than XX.X% XX.X%, the (XX:XX) Before of the the Enterprise of last the cash ME&T quarter. from billion $X.X of flow debt-to-capital billion. an segments, of the Year-to-date, sheet. quarter the I first was at second the was $X.X ME&T at to months year. quarter billion, through higher at the $X.X touch [third] second improvement on cash balance walk end end (sic) operating we end was nine
EAME, contributed starting XX% Now all go segments, through let's Construction the realization on to And move increase. sales and strong X. in price activity the we'll $X.X across regions Order all and third was change to to there favorable Industries. the up inventories. start last increased and About with regions, slide Higher were sales in and on we'll dealer Most quarter Industries favorable sales was quarter occurred billion. Construction favorable of volume half of million. in this from $XXX increase the the inventory the significant was dealer North changes year. inventory to in America dealer backlog of reductions about where
EAME and from increased sales of dealers is they're Industries the versus $XXX quarter. start inventory in historical levels. Construction million dealer a the month the about but inventory year, metric, up from Asia/Pacific of low
of volume residential in pipeline increasing end-user result and a due The the improving sales higher nonresidential activity of uptick gas including other oil the to an construction in America industry, primarily increased half was demand end-user construction. increase and North demand. and
across the region. saw strength Asia/Pacific
the upside. spot surprise continues a to China be to bright However, and a
year, in more XXXX for Our forward slows completed projects result would can which into than believe in of that XX-ton-and-above months. current demand China versus the some demand been construction our industry higher the We be has estimate are for the XXXX region. than that double is in replacement normal last winter for before so that activity estimate excavator pulled to sales
the end-user level. was realization very sales in seeing increase. inventory Price are While parts still to favorable Brazil, fundamentals increase we challenged, strengthening and primarily the at changes, contributed Latin low favorable remains sales America, due dealer especially not to EAME, also of demand. are
million However, due The higher price in in the region. by incentive end-user and period profit Construction was several favorable sales economic to demand in did segment Industries $XXX costs conditions $XXX countries higher volume to compensation. driven of realization. million, was increase short-term stabilizing favorable increase due
period incentive Segment about Excluding second XX.X%, year in basis of were short-term XXX of the about third quarter was last with quarter the margin this about and compensation, increase flat profit points year. flat. of the quarter an the costs from
demand new revenues and of for combined strong support $XXX Industries, were deliveries parts sales changes move and the equipment Resource XX%. X. the increase work, aftermarket realization to slightly. drivers dealer an on improved increased as of of in overhauls price Let's to maintenance Dealer Resource as primary inventories million Industries for well Favorable slide with to increase
has previously, stabilized The in demand months. several especially months overhauls subside, coming fleet in Australia, initial to down surge on for its from we achieved for As this has aftermarket started a past and trucks steadily cycle turn. at come the service parts a have where to saw earlier level. has The year parked we stated bays mining but into peak started remains over recently has trended high. five-year first higher healthy eight demand Utilization increase, trucks and the for
number of and While mines in come increase down, trucks the to of has aftermarket being also utilization trucks the contributed an working number in parts higher overhauled has demand. the
their Resource For and a from factories row Industries years quarter of to up after the end is were retail inventory change our inventories slightly and below just third favorable driving producing sales. in the a in Year-to-date, the reducing XXXX. dealer inventories about flat quarter, four dealer of demand, dealers
for to put in from second quarter, and increased about continues was competitive activity Resource the of pressure backlog in our regions quarter, many realization the products. remained the quarter. all the favorable strong price environment Although pricing Order the million Industries on across $XXX in
price a as improved manufacturing of low $XXX year the of cost segment restructuring XXXX. Segment equipment about quarter number in this Industries sales. historically as profit a in It However, improvement levels. loss higher incentive to a a million reduction of due of Segment to cost, was actions percent year short-term the a production ago. primarily cost still as increased terms and $XXX offset flat and profit inventories Period from of levels quarter was in position from million, benefits lower profit a resulted volume, new and and both percent were million favorable year about sales compensation. in a sales loss higher XX.X% as the for Resource from best ago. from profit were remain Resource $XX sales up absorption profit The costs Industries at realization, flat
were X. Now we'll higher Energy about all were across to slide on Sales move $XXX or the quarter to applications. sales, & XX% Transportation Energy inter-segment & up billion. million including in Transportation $X.X sales,
industrial for oil in for increased markets. servicing well sales In gas, in customers' support and higher the parts aftermarket applications applications and industrial engines demand across support all equipment to demand New aftermarket regions end to quarter. several increased
the generation North higher In addition, new by wells compression. continued previous million Sales favorable million of to than gas was last impact build-out of concentration to power to profit driven higher in profit cost gas EAME. from were percent rail This sales million. to in of have with projects wells, quarter natural $XXX into the demand higher support of North XX.X% up, America natural the increased cost in flat largely to strong increased of America &Transportation were improved Energy year. as infrastructure, for XXX $XXX from due primarily as a traffic were and drive was quarter. third quarter, that to as combined also Transportation from incentive American the a timing higher gas largely to year sales Period $XXX demand production volume in rail basis Segment had attributable points this North Segment XX.X%. short-term levels inventories absorption, compensation. services in increased up, a up higher midstream support and sales and
on profit with year. last third dues move outlook, third the the to of portfolio healthy a past comments about used prices X quarter the improve. remains versus equipment Operating on flat Products. and few XXXX to I basis Before continued Financial down from of points quarter The was
for we sales of revenues outlook billion. Now let's billion X. outlook and provided July, on move an the $XX on $XX to slide In to
and of providing $XX about new a good result increasing revenues backlog, and an guidance encouraging As indicators order we economic rates, are sales for of billion.
slightly the about outlook profit raised per the estimate have The and range price realization, the of and slower targeted and spend is at share of share favorable previous the $X.XX. about incentive of expense investments. with ramp midpoint result increase We $X.XX. by increase from largely XXXX with and revenue combined outlook and billion, for material raised for to adjusted to outlook and cost. an profit offset per $XX.X mix, revenues of per sales share loss profit are sales in profit the the $X.XX higher was higher $X.XX were a a $X Sales a share positives improved in period of cost in per adjusted short-term profit compensation These a
Our revised per revenues XX% sales of than is of $XX.X for quarter of share adjusted billion implied more revenues about and per profit of and The of profit fourth share and share outlook $XX adjusted a profit and and per billion, adjusted about on $X.XX. sales $X.XX, is XX% share per $X.XX. This profit revenues sales equates about up increase. to
impact for We targeted the expect and cost higher cost spend negatively in material will quarter. investments operating fourth period leverage
and beyond also of Construction the XX% by with third forecast second previous backlog Industries' XX% outlook increase up sales Asia/Pacific Now Industries up regions. outlook for for up significantly by have is in the regions, low driven now Construction let's the sales of the off be XX%, expect very been quarter driven across quarter all to XXXX although strength higher largely year higher America, Asia/Pacific strong in We The just across about up demand the of many the slide discuss on The sales Order XXXX. base. outlook end-user China. primarily a starting and a versus cases from all is North from sales on XX. expanding for rate to
full equipment expected Industries, Resource parts aftermarket up XX% prior for be of expected previous up outlook in this sales the decline as year sale In and year, half decrease. we rebuilds the to the second we of our now new to machine the versus outlook, slow XX%. to sales about XX% For expect to offset to for were of
The sales predicted, is we was that expectation aftermarket the our the higher sales in some did driven not outlook to for Industries quarter; pace see largely third slowing to however, parts aftermarket anticipated. As sales. by Resource the for parts in increase
previous for equipment changed not sales forecast our new from outlook. has Our
markets Resource & see to are and XX%. up previous to Transportation of The the the as increase America be sale to forecasted XX% in & X% strong gas. strength Energy third order are end activity this increased second the quarter XXXX seeing is strength our Transportation several North year higher the oil for industrial outlook about sales the forecast continue sales up and for is sales in the largely outlook quarter industrial Energy into from both across backlog of Transportation We for applications, Industries, largest Energy driver versus due a of onshore year. the the engines & in XXXX growth of to their industries. and the for customers
We wells to flow engines, for transmissions, continue servicing iron as and pumps for well equipment. demand in activity strong see as rebuild new
Transportation is expect demand to shipments about also year, year. be generation as year. for sales challenged, up are full reciprocating by higher largely driven We rail traffic flat anticipate to engines, be gas for and solar the rail applications expected customers higher now demand services. oil into has higher gas to compression slightly Power the to North expected to driven to be full for America as industry this flat and up, for be sales we remains
profitable share drive as first more and growth. focused to term. operational be tax geopolitical XXXX, we GDP on we and in uncertainty, strategies in three XXXX While infrastructure and comment will January. order is segments of early process quarters on are time, are reform too It this for we will the global At excellence, into an to move and Potential activity the our long has volatility backlog implementing on been and commodity planning is strong risks would and regional of positives and the growth XXXX. for the XXXX up, be bill
continued quarter, $X.X So, as strong been strong, the up a let's enterprise and sales Operational hand the XX.X%. higher a saw In year Year-over-year growth. backlog improve order sheet of to for model, revenues slide with few quarter. our to as margins has were debt-to-cap takeaways excellence The commitment profitable and cash a operational in by on third wrap than segment billion. rates on with quarter an O&E remains of balance and increasing the $X performance we of more XX. third encouraging the ratio billion result and
year-to-date profit the end markets, in performance XXXX outlook. our confidence we Given raised and
on We it on out strategy are new Amy. focused Day rolled expansion, that at are and the Jim delivering through September profitable With turn efficiency back to you, Investor focused that, margin now I'll asset in and especially growth services. offerings, expanded driving
