Thanks, Jeff, everyone. good and morning,
I’d with quarter you advance financial the some like slide Please nine. to third to of highlights our discuss of results.
from $XX.X gross a from quarter the of Consolidated a nearly and year. million. margin doubled $X.X million ago quarter, X.X% Technologies QX $X.X increase which consolidated third increased for to million, basis-point third XX.X% Sypris of from XXX was million the $XX.X prior is revenue Revenue an to profit X.X% last year. million year $XX.X for the gross from improvement was
commercial the decline during experience to sequential shipments altering revenue we and vehicles on This year-over-year from the about and order and energy the third automotive, a for in a valve refrigeration decline began programs quarter, in and products QX market We commercial for new into vehicle XXXX. board was for accounted expect reductions decrease slight our products of revenue trend increased market to XX%. Offsetting continue this vehicle customers.
compares Energy prior partially to technologies of Sypris slightly X.X% in product XX.X% shipments incurred programs. which legacy the down from the gross but on our increased were new QX. about launch for was year-over-year, in XX% Year-over-year offset on quarter, operational Technologies margin costs reflects third improvements programs, improvement by period. year in the margin Gross for
order to in to We new is this to bring up equipment expect equipment for OEM repurposed as specifications the costs downtime, programs. minimize equipment
is manufacturing processes productivity the during the lower we design for programs. new ramp-up as on the and Additionally, our phase, workforce labor train
Revenue Sypris the the contributed time increased the material for a Electronics profit And QX, performance would flat million discussing year. X.X% to the two like to in with and our that prior expectations $X.X essentially well gross spend was quarter. shortfall. was below issues to for This discrete I little
add component involves printed issue that supplier board our functionality an of programs. circuit one a of wiring assures third-party volume coating of the first value that the a The provides on process integrated highest
XX%, Sypris struggling low and first required days coating to yield the proposed supplier to article rates for to was significantly change full meet throughput After process our previous required The program this our run both yield Sypris' XX% improve the product process to production the by factory. in delivery to over was on complete. was and right. their sample on supplier volume the by yield the our back customer. As proposed and and supplier close the experiencing A approval, improved schedules. ramping of to has from and change This track builds our coating up, was process tests approval on took XX
was going The of of to be to our sourced second original centered alternate shipments the that were delayed around component us approval notified after a supplier an with that the supplier QX component in to we within quarter. identifying a qualify was the vendor from QX and successful alternate worked until begin an of Once deliveries notified, diligently that customer XXXX. source could our issue
the However, allowing components And were components customer a could test the close source previously to was for approval passed to approved the full use and our component received, the rate successfully to production September. program. therefore, before approve process resume customer the a the The we broker. test mitigation run on counterfeit component was alternate required as not undergo for
of on In absorption our not offset addition the the direct which able margins fully production two these programs, to overhead related lower impacted margin to impact the levels, high-volume contribution quarter. delayed in revenue labor associated and the we with were and the
our for conditions level year. current we look the been better component our the and is of at availability state any improved on broader we outlook at point believe market has electronic programs, the As this it of a considerably than have
Additionally, our customers the mitigate shipments. lead advanced for our that enabled has by on and programs us these on certain risk long components of to components of procure future element funding
conducted the at September, physical a Electronics end inventory we our inventory of implemented at year. was our at first ERP beginning Sypris of the since We system physical which the new
business for of physical to pleased higher rate. inventory this previous as $XXX,XXX system at has Our our X% book of provided a make basis, was on almost the physical of We results we Electronics. to a our for approximately We Sypris of another the as cycle were as the a specific accuracy balance knowledge not raw materials and with approximates quarter, adjustment opportunity can net result process learning incurred inventory much counting use since a inventory to charge daily of a target implementation. accuracy. the The improved improve improvements tool which
of manufacturing resulted each floor kitting shipment investigation the manufacturing in and operation customer. with and of processing ensure the the accurate reporting, to Our until test timely to materials to improve the beginning on variance actions through
on In addition E&O to increased a during the the program we adjustment, book specific $XXX,XXX physical our to quarter. reserve by
loss increase expense for sequentially. the and of million clearly reduction year-over-year quarter QX, $XXX,XXX approximately is consolidated of SG&A disappointment. for about operating a $XXX,XXX The Our a $X.X a was consolidated
contributing been However, put have to in setback remain on back factors to QX. the us the track confident we addressed
$X $XX.X comparable margin is million, gross the Please Consolidated was for the $X.X gross million, increase nine profit of and of slide year of points from million of the which last advance an from increase the months XX.X% basis XXXX, to revenue prior XX. for was year. months was first period XXXX. an X.X% nine first XXX Consolidated above
the million. a Sypris Gross margin of $X.X particular. cost from for XX%, and first expense or variable by improvement Revenue into Technologies nine million number $X.X year-over-year and the XXXX. an Sypris categories million, increased profit spend XXXX $XX.X X.X% of our consumable in basis success margin a supply reduction in Coming initiatives, revenue. Technologies and Technologies Sypris $X of months targeted to Management for supply and increase in to and other of for focus increased million resulted over as gross in reflects XXX points tooling utilities reduction by percent XXX a supply spend the basis-point controls was
of Additionally, $X.X avoiding expense cost certain generated machinery during million facility our year-over-year production of reduction combined basis-point The initiatives as in of consumption on effect two revenue. electrical drove at peak a high a approximately utility percent periods Toluca these XX reductions. alone year-over-year
diversify markets that $X to production on cost as inefficiencies XXXX these pre These as repeat move XXXX and from programs improvements ramp-up production. base. offset partially in estimate We programs new will and not launched labor being million continue customer in incremental to incurred and approximately costs startup full we were our rate in by
Revenue $XX.X million low prior X% decreased year, Sypris shipment the the for from levels XXXX. Electronics for million of reflecting QX to $XX.X primarily in
to growth sequential this revenue QX would improved year. variance We that prior in the expected to have have
related material to revenue exited revenue for expectations, discussed, month the we shortfall allowing month September we meet issues were as a level. our of the of consistent limited The progress. resolved at However, material continued to run the the and for October rate our QX, issues
for will out to us we routine our our targets. this support to We manage forecasts QX. require a anticipate challenges term, proactively backlog programs have near successfully meet the in among can in chain balance while we supply production And place our shipment to
consolidated offset of favorable Electronics segment, impact our improvements $XXX,XXX Sypris growth for and $X.X Our profit expense. reflect, lower the the operating SG&A loss which last million, was partially to was year reflecting in months compared for nine and first increased by the volume Technologies
advance XX%. of to in $XX be returning expected slide and million Please target QX range between to is margin gross XX. range with to Revenue million the our for to XX% $XX
includes based across year. and Electronics into outlook margins the the expected reduced on set mix by Sypris Sypris programs. revenue revenue revenue market, product for the programs drives Anticipated we from earlier new energy the Our this fourth at availability improved from of Electronics, range growth back offset demand for increased these commercial vehicle quarter sales targeted material
range. eliminate gross Sypris growing improve has in margin Our the launches the XX% as revenue believe opportunity preliminary to costs outlook program for XXXX We approximately continuing have we Technologies the in XX% XXXX. XX% to with associated we and the new further margin for during performance XXXX
We a on calling this as Class X the efficiently XX% QX. next American production in segment are need ramp forecasts in recognize to headwinds industry programs facing to for which year, up North in reduction our beginning are new we highlights production
coming markets and also We for anticipate year. line in the conditions the product in favorable continue energy margin opportunities higher this provide market will growth
with XXXX. coupled produce on revenue in expected for in increase an Sypris follow-on backlog, to opportunities are Electronics Our existing certain programs
has to earlier, availability electronic components can periods. from may noted specific plan believe we a production more And navigate improved. As achieve challenges future consistent those in while we time-to-time, present effectively component
The XXXX is to we contribution quoted revenue line growth for with deliver margins anticipate expected levels. in
overhead are fourth direct the our workforce balancing quarter. absorption to to to optimize and labor beginning in We indirect
revenue quarter range continuing of the and XXXX. expense are to as in in XX% range XX% SG&A percent in that a We targeting the fourth in
raised Although our it on our that has like income calls. briefly rate effective from time-to-time the on question slide, would isn’t noted to tax I as been discus
on income and and local our XXXX generally tax of domestic operation Mexico taxes. Our currently and expense income payable taxes state consists XXXX in
release may or foreign operations on months recognition majority the and release of evidence our valuation allowance in recent released. quarterly. deferred valuation Any tax the of become in result XX the million of $X.X possibility a allowance income valuation there a of We effective benefit review sufficient assets rate allowance next the would tax foreign that on is in a maintain deferred as in our tax would valuation domestic believe Mexican of positive deferred and also we support favorably available period improved the a that impact Sypris the of our our profitability assets. would tax assets. We allowance all some And has periods, reasonable tax Technologies’ future the
Please XXXX The we million, to on based advance the an and view to basis ranges forecast of gross finish XX% in growth between provides of increase with reflects to the revenue XXX slide to year. XX. expanding in a our Slide to revenue for margin midpoint recent slight $XX increase XXXX the XX midpoint in XXXX. the our outlook XX% of results XXXX performance XXXX or and XX% With million for -- consolidated outlook and and The points QX prior most expected of our over $XX margin would XXXX. of we from XXX land points before years just the midpoint discussed. XXXX, another gross three expected basis XXXX
Two of XXXX Technologies for costs Sypris margins a XXXX. in the QX and new to increased full-year the volume for in for key launch factors include Electronics Sypris reduction improve program in and
nearly offer a million prior an to points margin. gross or doubled year advance to QX X.X% Please increase increased XXX from of $XX.X profit; XX.X% the revenue. to $X.X of Technologies’ margin gross posted slide Revenue and prior XX.X%, $XX.X XX, for million million, $X.X million $X.X basis Sypris few of and increased in revenue QX above for million takeaways. year. to I’ll Gross the profit
of than lower end Sypris segment $X.X growth by Electronics year during and programs. were resolved for revenue These revenue in million but two million from profit the to QX. higher running ago, expected beginning impacted increased quarter shipments in a position the by $X.X its and issues revenue on quarter was
We commercial Class revenue levels the headwinds to from down of it last expect vehicle from XXXX above the in X market production as the average normal in levels years. cycles two
and Our demand new existing the in for launches, growth reduce truck the to backlog energy to are program offset expected markets components.
in $XX provided the gross QX million of in million We’ve outlook to for range. our revenue $XX XX% XX% with to margin
provided margins year million full to quarterly XXXX for full -- level shows continuing outlook a in XX% run above QX the that to the rate for our slightly also with range. a million preliminary $XX XX range of of stabilizing We range revenue for $XXX XX%
increase down downturn cycle of the impact opportunity first the the and cycle in X projected reduction represents Class believe face Sypris, recent place the The our revenue ahead. that the to and are margins efforts we and taking Class that we We recent of cost X business in market initiative well-positioned for the to this throughout the return the in the to for reflecting periods. profitability in prepared year face and the diversification target believe are
call at questions concludes to this over This you. turn you our time. this to answer back available? us to at today. I'd Thank you And have it might still Tracy, Tracy for time, like are any
