morning, Thank everyone. and good you, Louis,
weakness headwinds, we at profit. Despite below Regal that line several As impact rate, top normal to volume well end delevered the some the markets our XX.X%, headwinds significant to Louis quarter in regions. minimize had sales these helping mentioned, and saw our in operating
on total start company our by the comments the with guidance. and end I and detail more segments on providing will
mentioned, Power Transmission and into XXXX. four XX, realigned segments December segments Climate has Systems, company Those Louis effective Solutions business Industrial Solutions. the are As Commercial Systems,
the For our please of related to results this release earnings see resegmentation, recast presentation. the in financial the appendix this or tables
year. sales fourth along with were of The over segment in from impact as accounts, Starting proactive Commercial. and single-digit pool North execute declines China general industry, sales market. prior decline initiative. points organic XXX pump The decline. to to in the The also XX/XX double-digit by American the saw in approximately declines pruning low-margin sales with in Organic our down low in XX.X% on basis quarter approach was we continue initiative was our driven pruning the this the
The for prior the operating decline, volume primarily the basis with margin was impact to X.X%, pool This adjusted down pump distribution of unfavorable in the XXX to year. the was compared down Commercial mix, largely along points due quarter margin market. the in
XX/XX expenses allocate corporate also with were to the Nicotra this fact these did impact offset able of actions. Gebhardt were we XXXX, XXXX, impacted year not the allocated within business headwinds, corporate business price expenses acquisition. this margins and cost segment that to by Despite in However, the favorable but in to we partially
deleverage the gaining and an in For segment improvements the XX/XX was on below Commercial are this in clear the the indication adjusted a actions around basis, year, normal XX.X% productivity and segment deleverage traction. well that
X%, Orders along end in down destocking a approximately number with continued quarter the in pump. our pool in Commercial reflecting weakness for were of markets,
XX% in an quarter. is the this third saw However, reduction the we from improvement
rates, still if improvement is in this is but improvement to determine quarter seeing some first are we sustainable. Lastly, order it too early slight
in in generation industrial generation, sales saw industrial as were the prior quarter general segment as the well motors China double-digit project The and XX.X% industry, The delays the gas. the decline center is declines power American organic primarily in data Industrial, continued and oil weakness North year. markets. In from down to fourth in due in power
driven The decline in low-margin decline. basis on we of by initiatives. impact to initiative approach was execute as of proactive The pruning XX/XX our organic this the sales points continue was sales to our approximately accounts, also XXX pruning
margin the points prior mix lower operating of was The Industrial quarter The generation was to X.X%, decline compared primarily basis due adjusted the year. the down volume sales. and in down power to the margin XXX for
margins tariffs. were the of by impacted ongoing in In impact quarter addition, the
partially the despite to able the our XX/XX initiative. we headwinds, cost impact However, with SG&A were offset and reductions
below Deleverage in normal segment rate was this segment. XX.X%, deleverage the the significantly Industrial in
quarter. third sequentially the for from quarter it Industrial Orders While were is we in XX% margin in approximately reduction in each the segment quarter the significantly did improve it, where not down in improved the want of XXXX. X%, this
decline Turning Organic impact Solutions. FER to quarter The by pre-buy year. approach decline. from The decrease start initiative prior the in pruning the the first-half to in low-margin the accounts the of to was impact The sales down driven of sales XXX points the fourth was our primarily sales X.X% of by this year. mild Climate proactive by was also winter, in the XX/XX driven approximately initiative. basis were organic the pruning as of part of the and our
than On XX.X%, to The to saw a be actions points Climate sizable decline. up around quarter quarter. sales XX/XX initiative. Asia productivity and compared reductions the – by was the driven was double-digit expansion Pacific note, from operating region more us in efforts margin improvements, These growth year. our prior adjusted margin basis in The to headwind the we volume our the SG&A during XXX allowed the positive for overcome margin
year. in the despite sales the X.X% down by Operating in organic approximately third quarter. from the we X.X%, saw down rate Climate was the for X%, of quarter the quarter this Orders in which declines segment deterioration profit grew X% were the a
along As pre-buy winter, with impact first-half of FER the residential the in the HVAC previously demand mentioned, the of warm the start dampened in our the year, to quarter.
weak to but on Lastly, still it a year-over-year weather as early quarter, first we and perspective, is the dependent order be from rates very continue enter conditions.
were The in segment Organic in Solutions. primary the in Transmission and year. Power prior to midstream both headwind down fourth gas, oil X.X% Turning the continued from quarter upstream. the sales and slowdown was the
essentially we gearboxes. XXXX, orders of frac for pump second-half the in new fact, no received In
market. distribution in We with also channel, industrial be American impacted continue in weakness conveyed along North beverage the in the to markets weakness by
market. our in The positive XX/XX by driven growth was our accounts points end impact pruning energy of was proactive of decline. approximately organic as these to approach decline XXX of in renewable the sales The also basis the pruning significant initiative Partially part was low-margin offsetting initiative. sales challenges this
in price despite margin significant cost prior more than decline improved operating the profit productivity, up the actions adjusted basis volume reductions and offset XXX organic compared points quarter X.X% cost, for Favorable The the quarter. Operating the XX/XX SG&A PTS grew XX.X%, X.X%, was year. decline. to in sales by the
for quarter. a PTS were reversal up the third in approximately in of the quarter down Orders the X%, XX%
was energy renewable improvement buying a primarily the space, driven However, activity where in ahead of of XXXX. are credit tax the customers by in reduction
product solutions, decline the negative. of would engineered-to-order but standard at Looking third saw the from exclude order quarter, in decline, a slightly which the approximately we still X%, improved quarter rates
to As and the we expect be weakness see fourth enter distribution quarter. continue orders relatively the flat first quarter, in we to to
few metrics Now, will key summarize a I quarter. fourth the financial for
$XX.X the The were quarter. the in million Our was for total capital full-year million. $XX.X expenditures
above average that focused capital ultimately shareholder improve weighted we on value. – that and returns our capital of drives be to We continue deploy cost average ensuring
in simplification costs million. restructuring costs the related full-year of in activities related million and Our quarter. and restructuring consolidation totaled resulted The $XX.X and footprint $XX.X
–last XXXX excuse expect more in above last our we actions savings, annualized $X to year me. communicated quarter, what We than restructuring of million savings result million an additional $XX in
true-up The than XX.X%. partially distribution favorable in rate quarter by expected unfavorable two the tax foreign tax adjusted The effective subsidiaries, of the offset effective earnings the due of to impact quarter our higher rate company’s lower higher on in of was between a in was the regions. tax tax an
GAAP to table adjusted ETR of a in reconcile appendix ETR. provided this We the to the the presentation
full-year adjusted XX.X%. was ETR Our
our $X.XXX $XXX was debt million. billion was and net debt total Our
and of Our net quarter end from down $XXX.X the $XXX.X from the the debt end third was down year. million million of last
X.X driven receive $XX.X the in free from achieved quarter. in inventory well within reduction of million net million $XX.X the comfort quarter We of from quarter, in XXXX. EBITDA flow quarter quarter we last the ended We part with – debt-to-adjusted our X.X. by at ratio was our of and the X.X down zone X.X, fourth cash $XXX.X up to This million
shares For the most from year. working year-to-date strategy. XXX,XXX execute capital our for as quarter, Also, XXXX. the cash our of $XX free by throughout the purchased in we million million. capital improvements of full-year approximately approximately to driven made continue million fourth million on to shares, we of XXXX, we was $XXX.X achieved up flow, allocation $XX purchases This this X.X improvement balance trade brings the Again, our
guidance full-year XXXX. our provide will I Now, for
flat guidance Our to assumes organic sales to slightly down. be updated growth
expect some headwinds year, We see first-half to further barring the second-half, in stronger any macroeconomic the of with recovery in challenges. the significant
our expecting midpoint. of a we’re be We are On XXXX basis, the GAAP $X.XX $X.XX range EPS to X% to expecting an a adjusted roughly of an at EPS of in increase $X.XX, range full-year $X.XX. to
assumptions bottom the for of you On other find slide, guidance XXXX. can this our
set growth allowing up from us anticipating soft much to mitigate us efforts, restructuring continue Although growth, see our to not to are profitable growth. and the more and sales XX/XX help future efficiently, we sales we benefits expect operate reorganization, for
Operator, to now ready take we questions. are
