Thanks, Rich.
and over reduce and materials seem all in the press earlier April weeks to Europe quickly today, reduce salary much caused and We and in six development, by the supplies unnecessarily. to stop to production to and COVID-XX other our it company. with tell down research then steps has taken the as on up expenses release the dramatic from you the flow our tying to capital the from to impact of as categories disruption and XX and payroll. shut respond work including expense, possible on avoid to the and of other We raw we've last As U.S. inventory suppliers release marketing, financial evaluated
deferring of we associates them have and as reviewing in for salaried had to cost for quarter income for X,XXX we payroll experience approximately add plays $XX with X,XXX playbook of to quarter. a the by business the government and a who only the included team roles advantage Furloughing supported. million another quarter worth X,XXX to with we've some taking second week's working. and activity. furloughing planning for and XX% belt plenty ensure With spend nearly deal are to reduced tightening, part cutting the level are While our general of the our those XX% replacement of pay our programs by reducing of of of this associates decline This to second entire
and In reducing general cash, expenses second of protected leveraging and degree resulted payroll in administrative in improvement our including of tax and other relief our preserving position the $XXX number the ensuring alone. million were quarter. This capital and expenditures this preserve by cash other by distribution, a payments, and million over to addition, to marketing suspending U.S. over efforts for liquidity dividend, Simultaneously, possible. our million we $XX on deferring now cut defer we between end, investments greatest was $XXX and an $XX working year to the government for actions in million, year
In with refinancing addition, $X at which on of to express our of Proceeding and sincerest of we we X. this disruption team midst refinancing with our credit all support I'd the to continue complete COVID-XX core my our in resilience asset to revolving to closed like bank our testament based the of a facility, billion the of group work the both. April facility was appreciation the lenders. to the
the The renewed maturity credit XXXX. extended to agreement
ability our these million the amounted utilize adjustment of during and facilities facility's to the at adjustments favorable obtained of This $XXX times borrowing enhancing lower also the inventory of base to quarter. calculation the We first receivables. approximately to end
The other key unchanged. effectively non-price terms and conditions remained
plan actions to are developments are recovery. near-term to of to important these post shutdown other to for we going couple start as be the key there want highlight addition a In I that
series declining small United agreement response will make taken for on initiatives this we've to Gadsden, close providing outlined to Alabama as support XX calls, our in over rim restructuring continuing in a First, facility Rich of months our previous mentioned, week, demand the we progress to footprint. with a Last while bargaining our we're manufacturing reached that the improve In facility manufacturing steps tires. displaced XX Steelworkers for we appropriate to tentative the associates. diameter past
anticipated members to million Gadsden business On XXXX actions competitive over subject cost last a to XXXX to year compared improvements $XXX manufacturing generate the approval in combined in approximately union. local improving the the Americas units are This basis, position the taken by tentative of for of remains the when significantly. bargaining agreement
Second, we're seeing should the the later help commodity developments in that lower favorable impact of year. volume also mitigate some the markets in
downturns. decline on in environments raw some we occurring our situation corresponding impact is offset this could during the Recession, gradually volume than of with any material during different drop of lag. prices lower historically This experienced While difficult demand Great economic in the significantly and pricing more a
At we we saw raw quarter a benefit the taking of than our after and benefit the impact changes. suggests commodity million in most million modeling to with the fourth the be prices our second $XXX account cost in that half of the $XXX experienced from second material XXXX, of XXXX of the quarter illustrates million would first during $XX XXXX between more Slide of quarter. costs compared price the lower coming lower XX to benefit Great Recession into spot
inventory. results severe review building were global decline significantly Turning avoid protect quarter demand and affected our associates the to and to tire while in our production, of suspend the first decision our unneeded by
Our our results business a strengths of model. reflect few
the our parts locations, support our retail that factories continue customer assets stay-at-home even the word. in service the business customers truck to facing warehouses, ensuring and other even means centers, and That can closed our orders. essential most our First, are other that commercial of operate while U.S. is deemed during we
Second, our and and continued lockdowns. during this, late to replacement generate revenue related to March April business
last though the to While even not. replacement stopped it volume auto weeks production never recover started and low was it has over two
commercial shelves. goods with essential below the current keep leave particularly better Third, experienced during truck remained March attributes last we large that the the worked store volumes and business us to volume on through as levels mitigated first fleets critical tire only to environment. decline year's these Together, positioned replacement navigate quarter slightly our
Slide first shipments by Unit were last XX%, driven by to by volume primarily year replacement were XX, billion, tire $X.X mix. and lower down effects our Turning translation. but XX%, sales price XX%. from quarter improvements impacted also volume currency foreign in decreased declined decreased offset XX% volume, OE unit unfavorable These partially
declining was volumes Our the with performer business commercial X%. replacement just strongest
from operating was million and down can factory facilities utilization lower million, temporarily facilities. decline loss Our by the lower shutting related costs million $XXX and shutting our for of explained ago. to $XX quarter down approximately volume, segment $XX down income operating factory manufacturing manufacturing related the cost utilization, This Segment largely year directly be period to lower includes March. impact our in for
two charges primarily Our also items. impacted by results of $XXX million related discrete to were
first the deferred expectation tax driven near-term allowance The the in foreign assets lower by of of establishment income credits U.S. the was a on valuation tax for
items, The income goodwill XXX business. After second share our for our of expectation per these adjusting EMEA $X.XX. lower was totaled million reflecting charge impairment loss the in non-cash
chart units. of approximately Slide was change last versus in The $XXX a income segment the XX volumes on operating in impact year. X summarizes decline million The from step reflecting million lower shipments
continued both suspending In XXXX the quarter in the of first Americas, out -- actions toward overhead by operations. majority related from mix. effects costs million the manufacturing of offset in million $XX was cuts cuts the our offset of our were which Price/mix of end of million unfavorable conversion pricing production in reflecting facilities addition, which impact flat our at March. $XX taken $XX resulted the in decrease are This include production absorption. benefits to production the and particularly of
million costs benefits amount feedstock lower by impact the higher of black material were Raw of volume. The $XX cost costs. were decline Inflation $XX offset million lower of costs partially carbon of increased unfavorable savings and rubber equal adversely and Cost foreign affected prices. currency by by feedstock the transactional in driven synthetic savings. offset opportunities
category decline items. includes The the other in unique million $XX several
of production the million our write-off facilities inventory. $XX in suspending manufacturing First, resulted work-in-process
the our we production utilization quarter. of incurred million to in manufacturing SKUs our to at due the $XX ongoing expensing even Second, in costs Gadsden us factory before the lower This work-to-transition experienced about plants in dynamic facility other shutdown resulted U.S. first
Third, earnings declined related tire business. driven results million other $X by weaker by our chemical decline retail our in The operations. in was and
at Turning debt sheet first to stronger net the than the million. the $XXX on Despite of down Slide XX. quarter our year balance the balance ago approximately sheet end with disruption was a
of equivalents we forma had XX, and our $X.X million the cash of As total cash for also XXXX liquidity $XXX including refinancing, ago levels. March year approximately billion, above of and pro
for capital. Slide $XXX XX primarily flows. cash used million reflecting activities our during We seasonal cash summarizes of operating working the quarter
segment $XX.X XX. Canada steady. began and Slide to to declines on volume The significant million. our XX% U.S. month volume results Americas see decreased while beginning of March, Turning remained to during Brazil the
centers keep help a from share up fleet operations warehouse volume relatively includes and our March increase less service double-digit to tire our commercial truck by of open we This in commercial commercial truck our than the efforts were increased performance we our our X%. and to In keep running. down as increasing stable of replacement benefited customers market tires U.S. X%. Shipments units the with
was period including the factors were by The year our operating improvements $XX driven down factory associated breakeven ahead material lower offset of and by costs. utilization, shutting first price/mix being in of will These partially with for charges manufacturing favorable volume March. raw facilities results million after through lower decline approximately and in last February. Americas quarter
unit Turning in down reflecting around March. XX. Africa's shipments decline Europe, shipments XX%. to OE Slide primarily XX% industry the replacement Middle sales XX%, and Both in approximately and East, were approximately consumer fell
replacement taking impacted this declining modest was tires increasing we Americas were for volume sales relatively backdrop were with our to only X%. able commercial also deliver to restructure X%. we to to related replacement our with demand Similar about Europe. across Against expected shipments Our stable by growth industry declines distribution commercial actions were the replacement
$XX $XXX Period million. the and approximately segment the impact down loss quarter other million and was costs year's million $XX of higher by of prior EMEA volume including totaled driven conversion utilization. operating charges reduced lower costs from factory
XX. to Turning Slide
tire by reflecting XX% the decreased totaled approximately in from unit demand more demand X.X also shipments Asia-Pacific Replacement tire XX%, lower India. lower units in Original China. down Equipment prior industry declined China and industry volume driven million, year. XX% than
consumer favorable was million, $XX $X volume of operating partially raw impact million in year. reflects last These Segment costs. factors the price/mix, lower lower were decline income conditions our competitive including reduced offset This than business. and material primarily by OE
on to Turning to Slide when to that should XX, I forecasts. just be provide helpful thoughts your some wanted creating topics you
have volumes vehicle demand, Given or the year. industry accurate replacement into production limited an to provide we projection of visibility us it's with for you for difficult the
and However, down assume from second the affected quarter they to plant Overhead be continue will XX% year XX% adversely approximately occur that volume April in with be ago. reduced production. to declines largest the by close will absorption will a we
of inventory. recover. running benefit the second more levels quarter about as current XX factories We're in to to reduce currently expected levels reflect which year, closures at some should later versus and down than planning the plant production two-thirds Reducing quarter demand units reduced million efficient during the XXXX business almost or provide second is production
assumptions on a we the provide changes still for calculating guidance The production approximation. impact our is modeling page of good
the of will utilization. of than be of three approximately essentially to lag months immediate second quarter rather the account for low normal accounting impact our treatment the However,
significantly economic affected the also environment. other businesses In by related addition, our tire are weakening
at volume business. our impacting in adversely sharp our leisure retail drop travel is and and business low locations aviation and the is Traffic
is earnings tire our chemical total, effects the the about of expected tire feeling business million our in during quarter. the related in In businesses year-over-year $XXX addition, to In decline is second production. decline other be
unusual the cash for some the flows. in our related will working demand to capital flow slowdown second industry our sharp When quarter, impact dynamics about thinking
we result which the in of use experience As a This declines lower and funds. in rather balances, our act than in of source recession. to and receivable traditional as normal quarter, lower funds production of the is sales second period will inventory in the a expect a accounts
in offset more in Therefore, However, reduced near by be accounts $X not term anticipate any than the second have be quarter, quarter. use the something raw will use billion payable that working combined benefits we of a like we in for to we funds of When the expect QX. given cash purchasing we the these materials. capital been with losses expected could
source cash to year. the amount year much full inventory will for now Also, Ramping itself, we a back working of drain. source year, by be a depend end. big working second of expect to continue we of not should we up QX, a expect after the to significant on how cash be capital the capital be have half the cash although need to in at And
XX. Slide to Turning
will You several we've of updated see financial other our assumptions.
been CapEx to to preserve our guidance reflect the capital current plans align spending and updated demand disclosed, market to previously cash. As with taken has our we've actions
our of is made in We've $XXX slightly reflect our the estimate manufacturing impact restructuring Gadsden, our our the closure spending impact payments previous amortization translation. by reflects to adjustments and of $XX currency facility. This total million foreign Depreciation Alabama plans expected approximately down million, of increased and the revision forecast. capital the from plant of we've to
million, income paid $XX we approximately in quarter earlier in taxes we includes expect earned to million total the $XX the cash which periods. related Lastly, to our first
open the Operator, for we'll up questions. now line
