Kathy, you, good Thank morning, and everyone.
top our Our growth currency solid quarter, momentum continued double-digit global a increases and our drove on contribution second CIS in particular, segment line significant quarter made and basis. with overall as In record constant sales sales earnings. top team this line a both
convert on a top markets as our of continued our Each in as planned impact to sales operational work well our line in through. on and and major positive not driven Overall, end pressures inefficiencies cost increased to segments isolated growth. able all we or by growth of part sales as segment However, due we to basis. the are were XX% tariffs of X% constant-currency indirect VTS direct showed reported sales continuing
offset segment Mick growth quarter below I on the our VTS expectations. prior which the well CIS drivers, first down conversion earnings provide but the from lack $XX.X in income of more by will million, in was operating was year. segment, slightly and in adjusted Our details came the
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like segment second would I to the briefly Now review results the quarter. for
North a Asia. the in million. Turning primarily by and to primarily increased basis sales or This Page to a X, in $XXX off-highway sales XX% X% customers increase on was constant-currency segment increase for driven VTS XX% in to America
benefited from offsetting increase sales We with sales Europe. a X% than in decline also to more customers increases Commercial vehicle in were the Americas automotive X% in Europe. sales despite in a declining up
multiple sales Asia, a program from year, launches. up XX% prior have continue We by sales to the in driven where significant growth were
automotive was to improvements end points $XX lower prior by In operating driven income Americas of addition, Europe, in was year. down again, lower million, all basis driven margin cooling markets XXX X.X And $X to -- down the adjusted sales the segment the XX%, the line with Adjusted operating market. sales power-train million in X%, primarily VTS X.X%. for were than sales by up products were down and new programs. multiple to across customers
the were quarter, a As of within some of were were year-over-year segment others I this outside still many higher our to of on and this convert able volume control to Like factors, control. experiencing number which material industrials mentioned, the our not that we sales impact in higher of costs. we due are
aluminum prices indirect suppliers continue tariffs the also positions and related component by tariffs quarter net as material contractual continuing direct been expected. Much components the increasing to the but these This to resulted the are big are were pass-through we we impact raised base. leverage in this agreements, fabrication including of from being have in on that tariffs not cost. impact cost materials. the a disrupting only imposed other domestic LME are to being driver supply increased raw that factors, freight. of covers only has our our negative. of Although are import, of These and driven of Domestic cost steel and their in provisions import the and pricing our our benefit the A impact of the costs
contracts, supply fabrication asked receiving costs. our cases, being we're In other in sources. increases some renew we As we're find to significant even
In addition costs, to transaction adding and is cost. premium our has prior fabrication year from to the Midwest doubled the increased
been relatively stable. As covers that cost you this warehousing may recall, have freight premium historically and
imported continuing exclusion that are tariffs. on so The been In that without pending for to components file comment. subject addition, to requests are requests submitted we're have now far
objections receive have not exemption. when do or an been any not if raised, know Although we there we will
but components we receive and time-consuming not our this is do For believe with where diligently an customers to along we'll working pass are the process. a imported exemption, those we cost, complicated
these customers paid. invoicing information and have are costs, most not but the are requesting cases, in We more
whether are are are together We sources there process materials. this evaluating through and for working alternative these
still VTS the a Second, many of our we launches. at plants few result experiencing are a of inefficiencies as program new operating
control. dragged that within disappointed we address longer and to We are that are inefficiencies the on issues working are than have expected, our these
most experienced year. center deployed Europe, have achieve sales and Please that by to will seen have sales in of industrial am XX% CIS our to we am confident I Page improvements I improvements X%, to the offset increase half the expected segment customers some we the over operational data decrease due our in the America turn XX% pleased fiscal on XX% markets. constant-currency in to basis, and primarily and the X. $XXX or increased a sites, by a a these Sales weeks, recent for our second North million, to in We leaders to of partially
by I mentioned market based expected sales center and the direct-current China, sales. industrial As the of was high-voltage, data grid also Asia. the relates This in pullback were was in lower sales Sales cost quarter, were the development in XX% Americas transformer that Europe, partially X%. sales the the of lower In systems. government's to were in power in industrial and dropped decline on up oil higher up recent in coolers offset the sales last Europe
sales year. driven the refrigeration sales. and impact was a right commercial acquisition of low-single-digits margin improvement mix Americas the the The from for very Excluding This sales. operating nearly of points to HVAC $X.X center lower center to with When income XX% basis increased flat. up the million SG&A expansion line sales data were pleased completed it to product customers, sales X.X%. the by data and in for of the segment. of this segment by driven a move year we am knew higher $XX.X prior I by coolers, XXX growth CIS Modine. as over the Coolers or of X volume, of sales, million, sales the and improvement prior increased income data operating the was performance percent capacity. From center the years sales ago, we due a Overall, with ongoing favorable XX%, standpoint, coatings the while in is reported coils This higher was
such continue opportunities serve as data Now as where we're the growing market strategy seeing global capacity. increasingly we the benefits to to countries are our additional diversification center demanding
Building for This increase sales. operating partially X%, to in to sales increase lower X%. was data a and From up increased on higher perspective, the to and driven Adjusted customers center Sales $XX.X increased slightly a to North From X% of operating products X. in light million. constant-currency XX.X%, a expense. and Turning increased in the down to driven increase aftermarket aftermarket was to the last Sales X%, increase were to compared Adjusted X% volume margin prior income HVAC customers an SG&A in and increased higher Sales center sales income along by increase Page higher sales an driven service our HVAC primarily increased primarily products, segment with North in year heating commercial Europe sales million. by by a end-market sales. year. X% and America by the product heating by ventilation was U.K. data driven offset XX% X% from service basis standpoint, in in $X.X product XX% America in sales sales
segment also Building to in activity strong order We see U.K. in both our the in HVAC North America and continue
seen -- for in our and the particular have several conditioning leading unit strong our We recently heaters North gas seen in data America we both have share market air Canada. continue for and orders lines. precision center grow large sales have In U.K., had chiller to in
I'd provide continue outlook management to efficiency. Mick on building line of also our turn systems consolidated With on an to an for greater the in the financial like to that, are the it update XXXX. first Greenhouse as focus We overview some over high-efficiency for well fiscal remainder the our where of to products to the as segment results of industry to our connect for energy in