Thanks, Rich.
quarter volume While with wanted we results them. to below where disappointing, mix were a second bit both and price see
was We OE volume, These and in The would first the against material factors expectations. wage stronger number and overall dollar, first and a in raw higher macro consistent weaker that Europe. knew of us our increasing half energy U.S. a half. be India, costs, through with working particularly China inflation included
the were Results weaker these European by impacted second volumes. affected industry quarter than being for replacement by factors, expected also while
mix the expect While second be overall this should our I'll half, were material faster meaningful improvements. moments. volume a to more in will increases last we see the few better. we prior and capital the half saw some quarters. expectations than factor in And unfavorable of versus results second big price half But we year, in outlook not come first a our cost for raw progress the back working on is couple favorable the are
half, out factors also are of second addition impacting we there over a key the couple I as of to In look positives next the will couple highlight years.
include benefit cost announced actions the have the we from restructuring footprint is we Europe. in reductions have These underway. First, manufacturing
over Second, inflection the million OE to we our is a is XX million on a of fitments volume decline won last the units inflection significant X that based in months. this X after This year.
let first back come opportunities a from But future in here results I’ll review few QX. the me these to moments.
were X% down year, billion, Turning second nine the impact to quarter last foreign unfavorable sales currency reflecting and of translations $X.X lower slide our from volume.
Americas. in improvements a price contracted These is shipments. reduced largely vehicle driven OE actions most we’re regions, in with X%, strategic OE decline The weakness Europe. China volume production consumer trend in and relatively by offset in as well consistent the partially portfolio Pacific by the U.S. quarter growth as notably effects volume by drop in offset replacement our EMEA in the to the and Unit from mix. across the improve in Continuing shipments Asia taking first XX% stable the the India and were were with
weak category. reflects industry especially summer in the EMEA’s sell-in trends, performance
than explained decline consumer Pacific’s shipments replacement was weak Asia China. more in by
drove operating variance. the in first same replacement $XXX This the down increase year-over-year U.S. was the growth income a of was with ago. driving the Solid million, performance our from once the for million again $XXX in consumer factors market quarter results Americas. several quarter a Segment consistent the with year
results items for per a items these after Our and adjusting on were by influenced were significant share diluted certain basis $X.XX. earnings
non-feedstock $XX environmental higher The cost step and last offset of transactional increased overhead summarizes reflecting in on commodity quarters. increased volume prior slide million headwinds lower was currency China Americas the year. related chart production operating of prices. partially in segment by and versus The reinforcement stricter in Raw XX regulations impact absorption change in cost to improved income material increased from
in these expand of partially $XX I’ll impacts lag through my inventory a six as cost the we later goods second half. delivered improvements the pricing Keep have with mix negative our Americas, as mix which comments price mind on our by into sold. the million month We of to in actions offset were benefits move from and on three
million Cost currency continue million. EMEA. of the $XX more The effect foreign savings translation $XX be $XX million of totaled of Inflationary in offset than strongest inflation. negative to headwinds
in Tiara related our includes comments other the chemical come The losses also driven was U.S. weaker category including second [ph] other and which back share about results to our my of by startup from I’ll half. tire in our operation businesses
similar $X.X working the about we inventory in particularly Note and levels ago that quarter the to versus X.X higher a address by balance million net these quarter up reduced year to third on above from production a in billion, $X.X previous units production reduce Asia. levels. year capital, sheet repurchases is slide totaled amount that Turning second we late will XXXX, debt in share billion by well XX, targeted inventory reflecting including as as
and the approximately liquidity profile available credit in end with strong remains cash quarter. Our $X.X billion of the at
summarizes operating expenditures Net year. million down $XXX million XX cash flows. activities $XX $XX $XXX cash by Slide last million were from generated Capital were down our million.
segment results million slide X% our prior on XX XX.X to volume Turning beginning compared about was Americas units down of to the year.
OE offset OE, OE impact commercial and in vehicle volume U.S. we by consumer on production weakness weaker choices fitments. shipments replacement in in the the was of growth Solid reflecting and made
from higher Segment sales. decline year. including operating utilization, Americas at was improved partially income material our million, $XXX by costs factory down million were $XX reduced These a from last The party chemical was plant. earnings raw new factors driven and third offset by
during progress second and in impacted to half described The issues mixed Americas position negatively better results We were supply the half these gains addressing detail XXXX by prior on deliver in in first which the we made good constraints, year half. the stronger the calls. of first are
down replacement unit sales demand quarter. and consumer East Middle Europe, industry we weaker in by lower totaled share XX Note gained about the production Africa’s light XX.X driven that quarter. European during vehicle slide replacement and the to X%, Turning during million units,
XXXX was partially segment $XX million, mix. foreign was improved below lower increased quarter material offset This income significantly costs by last Second year. translation, price decrease and volume, driven currency unfavorable by operating
from decline actions raise in part OE in challenging million a channels. industries. distribution weakness Pacific auto taken Asia and our XX, prices slide X%, by to Indian units X XX% X% reflected of the fell Consumer the driven shipments continued quarter, China we've in declined volume replacement Consumer year. to and Chinese tire totaled a environment in tire Turning prior the
was our was year. grew. a primarily $XX volume decrease last million decline $XX by due material costs, Segment The utilization. factory from operating conversion million, income higher of raw driven volume, higher Outside lower lower costs replacement China and to
balance I comments, introductory out. for second mentioned my half to better, are and our in are puts beginning As takes the as in results expectations
then be these material in the for the are price us. raw largely behind first in materials expectations be flat The increases quarter, will effectively in reason levels, up and fourth today's quarter. is will the key third At that slightly costs raw
at been of uncertainty our the The most raw allows or to now the past bottom contracted and limited. of between the material moderation the line. pricing actions material materials of and benefit point, costs this Given have purchased raw year end level in costs of are mix improving is hit
our easier saw both first industry second our see in a we in The of supply, comparable confidence This automotive in expect a half by better a to dynamics, lean relatively consumer we for partly outlook key business. reason the production, partly product in improved reflection volume expectation the product driven consumer an in that in businesses increases including and OE improved second half half. channel decreases is have both and After second is international replacement, inventories. and lineup,
The our third in business. key particularly, mix, reason is increased benefit U.S. from consumer
of mix margin sales replacement mix, We have driven experienced driven U.S. three in but business, lower not product channels. by quarters through by our negative
we was result lower of have part priority and part commitments we previously, to distribution As of costs. our discussed through have that customers, higher of channels margin some of the this reflected it supply sales
also which like the status from was previously as their reflect been footprint These costs TireHub for equity startup losses future treated other growth. a distribution and part not included TireHub, build only Another out mix. in losses costs incurred distribution company, have to but
been of broken So not now out These reflection costs separately. of ongoing distribution. really a losses have
to This these expect million quarter. in of $XX by million each impact areas year-over-year first $XX per seen million means We during the that million half. should in to the quarter $XX of be second the we've to fourth negative improve $XX half, positive the
our earnings and come you as provide practice the to we isn’t data XXXX. of part of to outlook. to future as future next here, to opportunities give are points when we're years. related I to our three beyond There And I want a our want developing think about it our you long-term back plans remarks, couple to quarterly factors the see think that highlight about to viewpoints two the can I while Now help three refer
to our manufacturing first the competitiveness The of footprint. to is work improve continue our
March we XXXX. expected factories. our German related You it's million as improve announcement in completed, full $XX saw our made by This benefit the with earnings the to million to $XX will by
position a capacity reduce today, restructuring in at While as in a we're have cost value and in high actions low plan timetable. savings similar further on announcements least U.S. make any are significant plan not the to working the Germany to we high This as should beyond
the The in our X at we're second of is fitments the based see inflection year. on earlier, X won mentioned growth million I second OE the an factor is we enter units our after of OE last months year. inflection this in the and to volume global decline half momentum as XX that the over we This expected portfolio. a we've million
to There are two parts this.
we to secular in which to other completed have vehicles do and out First, many are margin low set of exit decline. the that on sedans were we fitments, largely work
one historically our for XX Second, we've months over about the experienced the in years, win in we've rate higher up on XX% has from the over last out last bidding of fitments recent XX months. three significantly to been which than been
When success, reflect we on the this multiple reasons see we factors. for increasing
technical told more of We've some that had and our we're most and that area on customers the difficulty get emerging specifications with those this evident by to vehicles performance is challenging. capabilities more which specifications, electric are Perhaps particularly First, been continue of technical the in have difficult. less meeting more required the bidding OE vehicles. competitors,
complicated. X with and electric these suppliers, design nearly rate has torque number more reduces of The vehicles power our associated makes tire This the of on last weight trains out capable in resulted X win and much being year.
consumer give over these Taken to compared global increase this trends or XXXX million in auto current OE XX%, by X third-party that us at together confidence units, projections industry volume approximately year. would our
tires With two-thirds have traditional that electric vehicle than higher volume coming revenue tire XX% of this from added fitments. per
our really business. about we're So OE excited
of want costs our material years. the on last to cyclical outlook I impact to related raw two is the The cover our of future third the half over margins factor, and recovery
Slide prior in XX current is the slide to to the material the we've early raw the cycle used decade. cycle compare before
raw to longer either While or progress decline might accompany make material accompany this cycle, might the that starting in economic further and prior costs that cycle been that has escalation raw than an by through believe increased still we're materials. a slowdown, pricing in
the We seen will I would coming see see we've that view. change in point prior a in recovery that as don't cycles. of anything margins in years,
We as create they plans, on will forward lot to of more a to But and work share are to develop. continuing opportunity with we our value. continue you see
just be are a capital Before million, We're to cash $XXX down it $XXX our the now questions, for income, operating up small expecting financial of range, couple $XXX we I'll open high-end expecting approximately from mention the assumptions. of taxes XX% prior expenditures of and between projection of and a previous XXXX changes pre-tax million be million. to to
been revised note Industry Europe. than in for are assumptions imports. Western expectation reflecting unchanged, assumptions have decline the other reduced our a for further growth cost a replacement, commercial low industry down broadly U.S. Also for
Our modeling first unchanged call. page assumptions from quarter our is
projections. to you use continue assumptions develop as So these your
up questions. line we'll the Now, for open
