Please Slide good Thanks, X. everyone. And Neil. morning, turn to
in our costs. $XX digit supply CIS or building X% of in HDE double and chain other Included was and to up were the material sales sales recover rising increase quarter help Second million million $XX with pricing segments. HVAC, increases
were increase copper included were automotive. and $XX tariffs. Adjusted increases rise volume In prior as steel by CIS the pricing and quarter HDE driven and than decline offset of than prices nearly freight, EBITDA Excluding The particular significant X% down the material higher for sales a year. costs. commodity in by was in declined aluminum, packaging million in metals, foreign million exchange HVAC, significantly more $XX and significant
large I element material prices to offset had As net increases. the amount by negative $XX we mentioned million an cost significant the adjusted pricing $XX a million of quarter Despite impact. this revenue, of as
had during temporary to prior of the materials, million increase. $X.XX year the the a difficult to cost earnings absence Compared saving, below QX prior last peaked year. of an the $X.XX savings comparison with addition $XX from resulted COVID year. share COVID In in of quarter per which Adjusted
we segment expected increased expectations our look as anticipated. what was quarter, we failed target. somewhat materials lower were and In originally meet the the have beyond below particular sales to well at than customers auto their As back we revenue
QX. I the during adjustments on, million moving of like $X.X Before summarize incurred to
First, charges we recorded $X.X sale for to related of the quarter. held during million impairment automotive assets
million the incurred majority costs of relating related XX/XX to recruiting to and we our $X.X severance. transformation Next, with
environmental and exit $XXX,XXX costs incurred restructuring Finally, $XXX,XXX we costs. of and auto other of
and GAAP include information, press appendix reconciliation. release our additional complete usual, U.S. As and results,
segment HVAC driven Building review segment XX% momentum sales the This reported turn to up let's Slide The and increase Now which please were by year. sales, heating was prior growth results, continued of X. XX%. from U.S.
air as customers by commercial center completed, conditioning shipment. up were Data XX% but products addition, of temporarily school a as certain and large value strong. demand were for remain In XX%, dollar grew ventilation impacted sales sales sales orders were timing delayed
As adjusted in all my opening anticipate book half. EBITDA strong Neil growth million. EBITDA covered HVAC primarily $X an in order second strong drivers including of by extremely The driven The macro-economic comments and factors. the decline lower impacted very segments, we covered is in our cost and the was resulted adjusted year-over-year two that
million resulted First, in combined impact higher wages $X the second comparison. a approximately net by increased $X items COVID million, and costs of negative and related in material
margin fully As custom the The raising as which a X. chain orders, by we time large last orders, lag offset fully impacted the shift some take actively challenges. supply expect but between we're orders there's effect. I been of turn negatively recent to to pricing in cases mentioned the delivery, trends, in has actions prices their Please production amplified and margins and to several commodity Slide improve quarter,
give sales refrigeration, quarter that most half Second with XX% down net and million up were Material for due pricing savings over comparison XX%. prior SG&A We offset any action. costs COVID COVID commercial pricing is in than in CIS improvement or increased and markets, million sales wages prior the anticipated to or in XX% the XX% and benefit. of in EBITDA increased was year. or increase SG&A $X the in year Revenue more $X $XX a Despite adjusted unfortunately higher including the up mainly achieved million million volume $X recovery HVAC coatings. coming of XX% difficult pricing. from
increases We continuing and are price improve through of this to the taking actions other push business. profitability to
in Gross QX. EBITDA third much-improved margin Given $XX HD to Please the decline driven about declined pricing $X turn for in pass-through gross profit freight. anticipate X. million million to XX% logistics all all was year gross costs foreign SG&A. we lower $X higher this or the million approximately and as and increased the anticipate of pricing. we profit the relating decreased EBITDA to of such and Slide of year. and result exchange. a fiscal million, direct be these Adjusted by which net with finishing profit Sales fiscal with costs The up commodity segment activities, in by a Material adjusted were low watermark $XX tariffs, packaging prices
In to COVID year in $X cost up taken was actions driven higher the the wages. addition the materials, SG&A savings and prior by million, higher
issues. supply a half, standpoint. growth expect in If second the revenue reduced cautious due chain have to a we revenue continued taking customers approach While we're some from more orders
can we're recover the wait of to which which costs, increases. be to of will the on longer, January, in long-term In in We're agreements price price in significant these working result cases, implement legs turn improvement. next some but should cases this material We price inflation. customers on challenging business, months and a six most to with multiple these rising The QX margin have adjustments worked in and shorten share to is in must possible. adjustments under wave rapid wherever cost or fronts lag our aggressively be XX. Slide Please periods
last would high we for our As the be automotive quarter, that I discussed anticipated QX sale. watermark
and with semiconductor COVID During chip combined costs we material the discussed raw impacts. call, various the global shortage higher
More down was declines QX. due the across highlight our automotive business with like were to approximately to the geographic of Adjusted sales automotive million completed XX% of which all $XX quarter, I'd second the regions. decrease For in negatively that decline sales was in air-cooled and Austria, lack sale and of $XX EBITDA as higher was million savings. impacted approximately for million negative prices for variants. the volume of lower net COVID commodity accounted EBITDA by the $X volume COVID the accounted of as another materials well
Neil sale further is the our agreement balance the comparisons we the revenue have terminated automotive anticipate of continue business have reduce for year. We to As mentioned, Dana balance difficult the the of and automotive with their in for year.
conditions. to immediate report. improve this market provide However, details quarterly during we're next actions given regarding more business taking the actions challenging these our We'll
a million $XX XX. $XX Year-to-date Now to million, free the moving a to balance cash turn flow is including sheet, please Slide negative negative in QX.
keep capital over We're improve controls spending. ensure tight over of that order maintain the anticipated to of year have reduce half that second cash our as flow our we supply finish backlog, each adequate levels safety expenditures to working we supply. the positive to to capital increased stock and position. quarter, major the force higher and expect will a costs inventories in capital half capital and Overall, been reduce would last discussed chain improve improve of have As year-to-day increased hard the inventory in The cash working help and which material back working quarter particular we year. significantly drivers the cash year issues flows us to flow have over as
negative quarter to Our slightly million net in $XXX flow debt higher of last cash is due than QX. the
year return leverage times, anticipate higher ratio will level lands end our Based back is we targeted X Our the covenant the year by range, X.X the full which our end. maximum below range the ratio outlook, on but leverage of times of well X.XX. on to
Now let's XXXX fiscal turn to Slide XX our outlook. and
our various two XXXX guidance, are issues. Given headwinds, mostly the we the outlook relates reduced prolonged and lowering fiscal to
cost and being the automotive first the outlook relating for last significantly the the our we've ongoing increases. lowered Since market segment. quarter, second With automotive
continue out climb, shortage perspective, continue a chip ability continued pressures from these mostly increases. cost offset fully through like prices pushes Given metal shortage; further will semiconductor the to From which calendar XXXX. believe the the to our
more million, have prices previously will last I steel for material As increase $XX We by earnings expect since will fiscal prices we than mentioned, more that aluminum than full by that adjust now our $XXX year further million. offset and cost the to risen call.
To to we materials from additional clear, recover year. likely over increase of the the temporarily originally but fiscal widened to in cost the into new be increases, projected. will the carry have what due will GAAP the price we continued However, additional timing, as increases recovery is majority
we're our increases pushing range of result $XXX factors, in other sales pricing million mechanisms through adjusted XX/XX to lag is XX% this $XXX a to on of with given leveraging the are to our combined team these million. temporary working price to and now of parts the data. the lowering business be costs reduce As and anticipate The that growth will XX% the range we EBITDA
margin levels the incremental and above QX in improvements half. We earnings expect first in produced
the QX project wave final large margin with a the we fiscal of in year. next improvement adjustments of this significant in However, pricing quarter more
addition not in the will we negative the In half prior pricing, second incremental the year comparables have to savings. to related COVID
by at look our remains end challenge, double-digit markets begin main The of majority remain but demand market with sales restructuring our growth. we the in we auto market, As the strong end the work. will
Our order and levels, expect half to work backlog up in this high, which the the through of unusually inventory has year. is driven we back
XXXX. now focus Based look book CIS on as in recovery, order future particularly recovery take pricing HVAC. pricing we your question. on order XX/XX the I'm encouraged and quite With book building and is that forward and growth, to strong we'll calendar Our
