Earnings call transcript Q2 2023

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Operator

Good morning and welcome to the ParkOhio Second Quarter 2023 Results Conference Call. [Operator Instructions]

Before we get started, I want to remind everyone that certain statements made today on today’s call may be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. A list of relevant risks and uncertainties may be found in the company’s earnings press release as well as in the company’s 2022 10-K, which was filed on March 16, 2023, with the SEC.

discuss on adjusted consolidated a may EBITDA income basis. company defined as continuing the adjusted operating EPS, and Additionally, operation or accounting These under measures not principles. accepted metrics of are generally performance

and adjusted For reconciliation income operating to as to of common to defined to net a recent EPS, please earnings attributable income release. refer EPS to operating adjusted shareholders EBITDA ParkOhio income the company’s

Crawford, now the Mr. conference Chairman, Matthew President turn Mr. proceed, and will I Crawford. to Please CEO. over

Matthew Crawford

our second our to XXXX conference has Good me Fogarty, welcome morning morning quarter call. Pat Chief joined and Officer, Financial as here this usual.

I to this morning Pat to the before over the on discuss call of details the want three to quarter. touch I things turn

important of First, meet important strive ParkOhio achieved billion revenue $X points the record but an as our about milestone to in also goal recent annual is in revenue, we makes XXXX. This quarter.

Our back repeat family we selling philosophy as meaningfully. best business our us engineered has difficult our of been years. one back of key relationships long-term and but we benefited expensive have Servicing has our customer dates decades companies. on of partnerships of been a to story a that recently, almost building highly relationships I date Many the these for stronger product customers a to and often XXX emerge

from to supply effort who labor Our daily team are record still sales every to the also team in requiring those of chain challenge day. Thank challenges, you are tremendous and which our tremendous are overcoming the result to but on are effort rising overcome. stabilizing, our

our who when to the succeed. we to have thank supported businesses, you We tirelessly help are many your absolutely to all and appreciate required. address like increases business inflationary support here environment Lastly, worked price and want customers and of have

in our a still recovery expectations, XXX forward. gross significant step points expectation or up long-term XX.X% is margin below basis our to – Secondly, is but

beginning customers our call achieve business our in significant every positioning lowered serve every to as we goals. XXXX, which well have and recently, affected restructuring current corner of as undergone new has to business discussed As our us on cost our

beginning opportunities promising see improvement spend to continuous CapEx significant to will years These incrementally. most businesses. support our continue Additionally, the benefit to for our in profits we are of recent benefit

have implies XXXX revenue our some we between Lastly, moved XXXX near to first guidance still increase up the half, from XX%. and performance. an but That deceleration record over XX% of

of markets buoyed by restocking in engineered with The particularly slowing continuing, the business end some backlogs in is second across products. strong half combined customer and much but remaining

be new robust. addition, business opportunities In continue to

As country but mentioned semiconductor, stimulus. lead markets Ongoing the on in way for our and end rail, gas energy, steel prior as long-term trends, and only us. recovery call, in and are renewable not invests as promising as and aerospace, our and privately through we both and advanced both see EV growth manufacturing, important oil these defense, government and also short-term will

over I to turn call the Now will Pat.

Pat Fogarty

you, Matt. Thank

business. Once operating sequentially both our this we consolidated most Our sales, again, reflect quarter sales continued from margins in second income, parts improvement record year-over-year continuing gross quarter achieved and across operations. and of results

unit sales was Our seen increased year. a business our in segments, the each three product business within very pricing segments strong quarter our of last of customer customer of three benefit sales growth sales demand across Year-over-year each in resulted global each the the and acquisitions diverse from in base. from business made

sales increases that XX% was our price the business. implemented driven in to and by net $XXX and million, up rate. We remainder from a quarter increased this approximately million XX% year. $XXX continuing the material of for were half estimate compared million value-added have Our volume-driven consolidated operations XX% of growth And of our second across the growth last $XXX representing each first year-over-year, sales was year,

our in year, full segment the and backlogs each first strong in second of we continued to increased expected the to business revenues continued up sales markets our across year, have half from Based of record most our of year growth this previous our announced half from throughout of outlook the X% end XX%, on strong demand XX% guidance XX%.

quarter margins the operations, continuing our up highest points XX.X% were year. gross XXX our quarter, the basis of XX.X%, the margin In percentage we quarter to with addition XX.X% of sales XXXX. The gross improved fourth in from to strong pleased which gross second from is margin since last profit

levels, million year-over-year up were acquisitions, XXXX and first-quarter levels sales to SG&A SG&A and to costs. due increased similar $X primarily expenses higher from our personnel

percentage XX% Consolidated to a was and of quarter. last On a $XX.X one-time from excludes of million to last to ago. up first operating restructuring XX.X% $XX.X continuing charges, an operating compared million second the in operations million year’s sales, the compared As quarter adjusted year other was to income compared X% and quarter. basis, year $XX.X which sequentially XX% compared and income totaled was SG&A

industrial improvement and improvement to points the operating respectively. points were the first first to compared components in basis points XXX in were the approximately Also, quarter. basis of business quarter chain compared and and assembly XX% businesses equipment XX in Most showed operating supply second up basis our adjusted margins notably our adjusted income XXX business significant margins quarter, an

prior quarter and across businesses. from initiatives second price actions margins the consolidation and improvement impact in taken positive implemented the restructuring the operating our operational improved periods Our actions from reflect from

year-over-year. was for was the of for rates interest tax increase, million quarter XX%. $XX.X in higher was with tax remainder effective borrowings is expense million a expense our million in compared to by an the driven the $X.X income rate line the due $X.X year-over-year Income the with higher XXXX. million to year average quarter in full Of $X.X $X.X This million expectations Interest year a ago.

share, second share in quarter $X.XX of GAAP last share was increase of the per the per was last quarter quarter, in share EPS basis, adjusted from per second continuing an operations diluted to compared year. $X.XX $X.XX XX%. per On an the for diluted earnings compared year, $X.XX to

per last $X.XX share, per share to adjusted XX%. earnings quarter’s On a up basis sequential was compared

continuing operations as in ago, an a up year quarter from ago. million increase On basis, of $XX a the from to continuing increase XX% second XX% million an million sequentially. EBITDA $XX.X EBITDA was XX% million, year-to-date and defined $XX.X of was a year to Our compared $XX operations compared

$X a second of of use last flow quarter, the free of year. our from cash we flows was significantly On the During a up approximately quarter second cash million year-to-date million use $XX in basis, a generated operating $XX million. of

of made our reducing have capital net the of significant progress are months benefits seeing X most days first businesses. year, we the in our working During and the across

full a free million year be As range result, of flow $XX for to cash expect $XX continue the in the million. to we to

million and our Our second which of various suppressed $XX liquidity continued to $XXX consisted million $XX of end availability. strong which of quarter totaled included cash hand be million, capacity million and the at banking $XXX on arrangements, of of the under borrowing unused

Average year-over-year. grown ago. $XXX to chain now the up completed realized Customer key sales XX% to results compared Net in sales year. million. in our segment Southern record Turning have in most during was a business record segment this million basis, our $XXX XX% price sales end from and in acquisition a increase daily to sales increases XX% higher a Fasteners, million August of demand year-to-date were $XXX up On the year technologies. driven were supply which last markets. in sales of quarter, The customer by was the supply a

The the quarter, end-market revenues. markets, which the civilian declined aerospace. power heavy-duty largest year-over-year, agricultural During and truck, which of sports, increases end represent XX% in were consumer-related isolated few industrial markets, equipment approximately certain and were segment end

to our clinch year’s XX% second over higher for proprietary last sales manufacturing continues business products as demand the year, as well driven acquisition perform Charter and achieved well growth our fastener self-piercing customer In quarter of Automotive. by of last addition, of

this levels profit income $XX.X was basis by increase year million XX%. an totaled Operating the million, higher margins year-over-year operating offset Operating to ago, approximately costs. as up flow-through in a from were partially points of XX higher sales segment $XX.X compared

price this business results reflected Our and initiatives supply focus improved is on industrial in our to strategies higher-margin grow segment. our action in

of to the year throughout wide customers. strong continue second and demand across of markets will well this perform half We a segment the continue expect to business and range our of end

which for ago, demand rest second be are half $XXX our a million In Assembly a certain continued million XX% the were an segment, lower to the of softness plant the of the consumer-related strong due in do for record second the half half $XX the end year year-over-year customer quarter expected Components primarily markets. year-over-year. we the growth increase sales to year compared shutdowns, of of during typical and Despite growth first levels, expect than year, to rate our

of quarter. well as our categories, product pricing the as year each customer molded and and our during grew and a products, which our in significantly year-over-year result increased as products first fuel-related extruded of from to sequentially and compared quarter launched business the include last plastic Sales rubber realized the

consolidation operating in and our by The on income costs On activities million income driven year improved lower in has the increase basis, year-over-year to loss Segment quarter significantly a an year-over-year. second of year-to-date has increased increased operating from been margins $X.X adjusted customer current year income compared million quarter was a and the million significant operating basis, plant in ago. $X.X pricing. operating million $X.X to $XX primarily resulting a

this aluminum our been process has is business, in to segment, historically which included ongoing. sales respect With the

quarter, EBITDA was loss million a from and second the of of in the was million net business this incurred quarter. net the During tax loss $X.X $X.X

products automotive to and continue this electrification key over certain lightweighting, around auto business initiatives the benefit the platforms for long-term. We will OEMs believe onshoring

customer strong year this converted Engineered Sales to year both melting services ago, were last parts Induction the $XX million were and $XX new heating as into business. compared Revenues million in the ago. compared and to equipment million aftermarket machine first in sales. our In both capital driven $XXX are increased million and up business again totaled near-recorded remain average being of to compared XX% our our $XX capital $XX quarter forged a region the now in in strong by bookings Moving every a up segment. equipment quarter. a and products and quarterly our demand sales to of XX% in second backlogs quarter strong equipment and million, and a our business, Products quarter year

In an of X%, as products X% from Our to in end $XXX of June new backlog was up key the as year. increase sales were including and by aerospace quarters. demand the of several and driven XX business in increasing well customer million, past the last awarded machine as markets, end several quarter rail our and forged compared defense business over

compared our the mentioned, business, equipment forging million equipment as $X.X million and year ago. which $X.X business, the the downtime quarter, and business, consolidation plant excludes to which equipment continued million $X.X and was labor The the capital in the at was challenges results to approximately operating in other losses margins our During more adjusted income income results since lower our impacted XXXX. in were second were quarter. business. In XX% income year. basis, profitability offset restructuring this capital in XXXX highest strong segment and than million forging In was level On in I $X.X operating by quarter driven operating an a operating actions, last compared our

a last are in resolve compared and the in XX% million year-over-year efficiencies our in have operating to action which as and increase On $XXX integration a Can an income seeing Arkansas this as adjusted downtime of $XX year-over-year. We equipment our million the sales part segment XX% year-to-date, basis, million, year-to-date ramp-up, taken improved labor Forge Crop business. this segment of and reflects which were of occurred $XX plant in our was forging improvement Ohio to facility sales in

the We quote to equipment end-market. steel munitions in capital opportunities battery new new used electrical and production business support continue defense technologies win in used increased of certain the to and

of customer and our trends $XX over respect sales each to and equipment induction-related are strong During forging with XX%, this second received outlook part business year to million in related sales press our driven demand to will continue our full directly we finally, current increasing to by these quarter, growth to segment. And XX% benefit. orders believe we guidance, market the in the

sales continue as segment. cash We operating and each levels as to EBITDA flow adjusted higher improved income, result operating improvement margins adjusted a also in year-over-year defined of EPS free expect in and

Now I the call Matt. will over turn to back

Matthew Crawford

Great. very Thank Pat. you much,

now will open We for questions. the line

Operator

from [Operator Instructions] question from Our Capital Markets. coming Steve first is Barger KeyBanc

live. is line now Your

Steve Barger

morning. Good Thanks. Hey.

Matthew Crawford

morning Good Steve.

Steve Barger

then pattern up, of two if nice couple sales earnings this margins it half looks the With which are first not be years. like, been for the guidance, to above has updated nicely past hold going half

thinking of just that how if improvement So can profit program first, about is apart? is you versus that much second, how the it? that are break absorption And you volume-driven

Pat Fogarty

this morning, Pat. good Steve, is

I although we rate growth some to half think first forging declines in are this second see going the see improvement to half, primarily levels, volume relative our we business.

in will is been of the and result to going improvements and intact done Most compared half into the I remain going most half first to really from we the lifting our the from improvement year. the think levels. all the year, other are see margins second in margins of not in as move we only business of that the absorption to consolidation over last year, that result but into next heavy that’s all flow-through will

consolidated mentioned This in the will our a margins. of rates increase better manufacturing square almost six get XXX,XXX absorption first we over and we opportunity provide therefore call, flow-through facilities, and better gross As space. quarter foot to the

Steve Barger

Yes, understood. I got it.

sustainable place? So, from like you you remain it are, given you of levels that programs standpoint, where are these in revenue see but sounds at rates a if profit want to put the ‘XX, – guide you they don’t it I the things like have kind sounds if improvement at know run

Pat Fogarty

No.

as mentioned of the activities Matt but margins. the made some are opening we we As believe XX.X% investments consolidation gross as improve his fully the comments realized of because there upside benefit haven’t well have that that the are is we capital – with we all to pleased in margin,

Matthew Crawford

is this here. Matt. saying bump by I add Pat’s would comments Steve, only a saw we to nice that

think that. some improvements Our opportunity long-term, is even and the investments continuous we upon We improve made, for our mid-term goals restructuring. both are to have there around

things, operate We bump those environment. a but from pretty to in have seen continue big we choppy a

gone. in constraints constraints, equipment chain the business, these not supply particularly our board, labor So, across are

awfully tend looks careful try So, be like. to quarter-to-quarter to we what momentum

the So, the believe while difficult pleased managing the with in in as direction and this across particular, board we there of some recovery four-month, the tank forged are five-month a see pretty second in we in business really quarter in gas outlook also three-month, the environment. and mix is is

Steve Barger

have Understood. and as well. you to have which done any, capacity? could Can made mean require going utilization consolidations record I that you XXXX know we plant of these about talk about talked are businesses, investment? be are is on I general but if investments up revenue. you and in Where kind against capacity further

Matthew Crawford

question rates, the in don’t I enough talk scrap Onboarding and etcetera. actual the go cost as higher on often ways. many I and of almost and Yes. we about closed, don’t lot we much mean the that great just I turnover, square feet don’t terms about costs, mean We about probably on. X of talk of could million It’s retraining, cost moved, talk the restructuring, a we talk a We one about. often lot the in touched a

ability Pat his enhanced environment, restructuring seen profitability compete we around So, our and profile comments, Group have the in A. our our is In long-term mentioned stop. Exhibit hard current to has constraints, the challenges, some capacity as Forge the

more very are we we getting did, done some excited about we We money. be there. making would was what and probably less of out moves the products not Had made

some had have trade-offs here. we So,

invested our excellence, areas and in automotive grown and of built and facilitated of centers excellence have in We some new business.

We are absolutely world-class.

or of downsized that couple high-cost. closed have We plants were a

very and them them is to work, scrap. them, can tell onboarding expensive back getting come in I premium people, to come you We exciting freight work, have a only get X,XXX future. training to

issues. tell you that we have I don’t believe structural So, capacity I would

ongoing promise going have this around. we to continuing issues – not the say was of capacity but call, the to I good the legacy think turnover people, level. labor really direct on of got COVID, at COVID loss turnover I the

day right. assure How the out. more things at our have is So, get businesses. make on capacity teams – and can focus on better How our a to our some the believe issues labor you make and number I the we we of on inside can and it we that can warehouses technical bottleneck that I really every is resolve tech try management how efficient, of of kinds what every we supply day we is can and

could don’t a So, with – that. period we I – we year any sell have, this lot we we for sell have stuff more in we the have backlogs and could

got – some but working I and XXXX as not highlight, constraints, capacity although chain have we will products. So, issues, through engineered constraints, those view hopefully we have XXXX I we see. got have particularly supply constraints, they issues, supply are got so would lessening we do are we in we some them tech. in but

Steve Barger

will or – I ask And percentage mid-single structurally significantly still more upgrade Great. of What let’s consider that of that you record what lower digit. say Engineered would segment overall? portfolio Products. divestitures revenue margins Near is one to And margin? on kind margin profitable not just

Matthew Crawford

give think following. been, Pat Engineered by Steve, business led their and a this has of be you be aftermarket. Products will commitment strategic minute should say to will again our well, to highest commitment I the and – company know margin

about in been us for So, a number is again, as mix we the will we restructuring. – that a cards, improve that and is things of positive benefit the just has talked from so be

I committed are business. also induction Forge we we I fully love as say businesses would So, where the would say know, we heating to the those love, in that are you We business.

Arkansas. down that We second in in have invested line

here go goes our and in a margins in made We segment consolidated on hammer some margins. creating we Canton. will in and bets forgings that center commitments consolidated, operations of the invested as excellence and large and some have have No,

we see story that’s part where of So, upside. the mix

Steve Barger

Thanks. Okay. it, Yes. Got

Pat Fogarty

with going the are keep The I on agree Steve, fully in a the we a Kansas in – next dividends my The investment will we years. the forge investment. X consolidated it. businesses the Arkansas. fixed fantastic in we pay unusual, was it was has It and crop long-term were results through plants investment quarterly in both to are associated breakdown business only Kan the our is see there Matt very for and was downtime with comment, are short-term over which said, long-term No, in and what in side, outlook infrequent the is forging the a strategic mind of been costs because two but isolated startup a of X result losses years clearly that to

So, excited about are we business. that

Steve Barger

sounds good. That

Thanks. Okay.

Operator

Next question today is from Abebe coming from Yilma JPMorgan.

Your live. now line is

Yilma Abebe

that morning. – you and capital going good things you free if think of generate generating just maybe this me, to to about $XX grow million one us, perhaps, million allocation, you can as next mean remind $XX expected, Thank are One, you How do question capital cash should year, allocation? from on I year. you trend if flow are

Matthew Crawford

to drivers. about how I I the think your about you us absolute allocation I I invite think first change say were conference and we them the best capital a at helping value – to horse managers spoke kind enough to of prioritizing what think and our to to capital businesses, we like call capital our succeed trough providing in is best providing internally and

the how ROIs, call continuous the we strategic pay-off to business it but second You is short-term not of and investments in improvement, competitive it with enhances profile good believe long-term. the profile will highlighting can that that only

positioning. of our have created a incidentally invested byproduct super and in some good on we that returns things only as this competitive So, but year enhancing really investment, have

is one. that number So,

our the front. down business and We opportunity side mentioned lot the calls have to about think traction organization, I prior about and we hiring to of people. that to have inside COVID great out, to that make think slowing think used the a on about continue on deal on

So, I that’s saying will begin number one. by

capital way, continue General Aluminum. change So, that’s I expense by wonderful the a will would stop business, sale our want profile. pause with let but to note, trough. it first and But General I the a there of Pat does maybe Aluminum the pending at And is that.

as as bit you Aluminum but always General the business, our capital-intensive think a has not expensive, of only business amount our that them. a about has It’s others. pro-rata Yilma, it’s as So, and one little sales, of business, more been understand forging

and but So, we think of improvements in identifying to some best anticipate, CapEx, businesses. and in would invest again, I our products continuing

Pat Fogarty

agree said. I Matt with would what

that we second year happen not a make debt is across ratio I of think second is We over that X.X investments but next goal the balance enter sheet. board. in how that when projects will we XXXX, below half will half. sacrifice is the the the years, into believe for view That the currently X the leverage very will deleverage net achievable we high-return the the based on the

Yilma Abebe

to I that maybe guess point.

the driven an you debt are In the EBITDA mostly pay-down path terms of expecting or growth? deleveraging path, deleveraging by absolute is

Pat Fogarty

meaning will the as half be result in agreement. as a the of the second combination revolving But we debt pay-down at of look It a our always. short-term, will it the of year, credit

Matthew Crawford

a had Yilma, first important year. we that the have pressure business of the if cash for cycle, include again the this GAMCO, the flows I some to the know in moment business, from bottom the us note to business half of and I on million But where all-time the it’s are we during today, of a our run which $X.X rate dollars think added records. revenue hundred above I that’s we was couple have $XXX is of X.X%, billion about million which trough revenue that of COVID to since incremental

talked about to or our relative be would would and we we some products just it business, the the have pressure. it in investments that’s the about seen some growth best be where whether businesses of funding So, whether

moderate or So, we right. as that – better think think truly that hump worse, sales for

and capital. me, harvest we excuse some growth of can working the sales As moderates –

that the today. we of speak We side on back as are

you pay-down have on glide the side, both. the so do a nice seen side. we we So, are progress the anticipate EBITDA path making on And

Yilma Abebe

That’s much. very Thanks I all had.

Operator

you. Thank

Next question is coming from Dave Stonegate. Storms from

is Your live. line now

Dave Storms

morning. Good

Matthew Crawford

Dave. morning Good

Dave Storms

client downtime break of of Could and as a like current Any that if volume the it’s more that’s clients, touch be would to some in backlog quick. It on strong. great. productivity? hoping just a Is acquisitions, you taking there down maybe new all guidance demand on still strong? product are really seems that remains byproduct the just We on real restructuring

Matthew Crawford

comment we term our say generally the terms Dave, of just know, of by units. I generally, in business the company is we week. think supply backlog sort by are will as difficult technologies in because demand in ships, a would we I about our by managing you mean I are the day, time.

there So, a – are business. demand less backlog-driven that’s of is

Our demand picture there again I think would be our consistent with how business. overall we have talked about

I opportunity mean has still customer strong – from think many restocking I tech. is supply board, supporting moderating. cases. buoying that’s the not is but across in for in demand and some But that a perspective, I improved think

In be are markets will tailwind semiconductor strong those in been forth lot places end that strong. have by a recent that the markets of and business of opportunities, again, of some in EV forward. so new be that well. continue and like continue But that are the stimulus. So, to Many some going infrastructure. to a etcetera, space. Maybe we those Again, to kinds of related buoyed to are less automotive, spending related do activity

think back those on inventory one that of Those and need good industry they do types up the by much and building were lots. is the follow to to their the know it’s have tooled that of don’t these like a but that seeing energy be you us a days a some programs think a suppliers product I is – where lot standpoint units It’s of the to time for they good know thing do lot profitable about wanting now and OEMs margins, us, continues better most I operations. to had spent historically. return COVID and breadth they So hear for during But restocking. of good the get have, I which have production of product, it’s from of you breadth for also sold us. not are they way

truly and all addressed capital to and robust something, the – near firm as because you after worse, or those question Well, Products start is zero very revenue that ask new business the book yet continue speak ship Lastly, next and trying to Pat backlogs of order those business. you it of I business sort and new would job. the are and group, record to you with that’s the in where highs the get those relates course, start orders for with you Engineered to be better equipment are

that So, think that’s really is XX good we I and some strong. only a months what seeing of be again, And gives the of that business and sense us in labor to impacted terms XX supply months continues the there next out of to very are that largely the not by constraints.

in discrete – of up, steelmaking, can’t and public on calls in think all benefits So, in private U.S. and more as some but a we not connect we Again, are I always green I clear the where here are backlog, megatrends. interest know areas and governments these benefit those can’t past again, in the defense – clearing little about we these seeing in EV that orders real I but the energy. will advanced to also I think talked write I we a priority, the dots both steelmaking check, side the mean of

So, those that those something, are ship that [ph] all? are it’s significant not to those potential. you Breaking – are long-term once But new. new, at because help the all buoyies – does

Dave Storms

you the you or you. with That’s going segments that know going with incredibly moderate to push in Do to kind mentioned pricing fair mentioned for level pricing being you of ability tailwind you. raise that could, customers? inflation won do moderating? think I great that expect forward there still the just more, How past last you the you I if pricing. have see that a helpful. Thank just to should we One gets at you forward? And are you a is your do think

Matthew Crawford

a Yes, good have our that’s been us. thanked customers – question. who It has comments, supported opening many I my I in of mentioned

We source. up our the COVID. of supplier We the millions to were all of dollars were tens during happened contracts are of that we a not of downturn. our set customers. what mean I on during sole Much is vital business lost shock-absorber for

lack We not set of are labor. up for

– not of many in the are productivity for and up We set fact, cost contracts downs. had

of millions the So, we try we support our because and that’s spent run. to business kind customers

for – that of but are EBITDA have single-digits middle help been me have operating help, asking and received of the lot have let we margins. still ourselves well we in a remind We we

that, very get are paid cut have work customers. have we we for So, our certain appreciative out from us to for what of gotten the Having we have continued do. said support to we

We that this the come us continuous have. our going our also out choice they of We we investments improvement, our make as supplier believe and forward. restructuring best-positioned believe the

lot, you As give say doesn’t good apt particularly a them don’t year. if – a give going it I what because for a you last are year, do for to increase, they customer price customer have they to you them of what am next to you a did to for

going to great build on appreciative when to profitability again, it are. certainly have helped these and to that’s want really we It’s sometimes we and modest us that be just are we relationships. those to and XXX-year a them continue partner we to and hope to our, needed So, people reward achieve where

you that have cases – think points. some over. good Commodities raised no, I So but some in rolled

So, that’s a tailwind. been

focus to finding continue on prices. We

manage end. are the think team, think address going the managing commercial the got the think we we have side to crisis chain have got clearly, the of to we I coming supply management operations is business I have those that I and we But phase requests. of got and to an have to

Dave Storms

taking for questions the you Thank helpful. my very and in quarter. progress That’s

Matthew Crawford

very you much. Thank

Operator

Thank you.

question-and-answer closing would like our further reached floor to of to the turn back I over management comments. have any for end session. the We

Matthew Crawford

great the Thank Great. questions. the for Thank you for you support.

We than do. we work in and saying can a and better organizationally some only lot do have been we have business a of to long a business-wise we But progress And again, real think I vastly leave by here. we are product-wise made time. that have

I years, not just to couple of the So, it’s compare as ourselves but past to pre-COVID.

customers our of you everybody a you thank thank suppliers. an done work and great and Have So, amount day. to has to who again endless

Operator

and That you. Thank conclude does webcast. today’s teleconference

We time line You have day. this your today. for participation your may and you a disconnect wonderful thank at

Park-Ohio (PKOH) 3 Aug 232023 Q2 Earnings call transcript