I'll the ongoing also Thanks, discuss to position, performance some which includes go good from Paul, working XXXX asset financial and quarter items of but This through fourth morning, actions morning. more current the manage and important sales. and capital noncore the management, our
there one event the for in and for strong I noted and a of noted, ag as time most – be As a can some both – this as industry for the into what demand the only destocking major challenging customer quarters with in decline was was business described construction.
from million, $XX the the XXXX year. were for representing of XX% fourth prior quarter of $XXX decline sales Net a million
in two months sales five seen the were The the being first quarter since was with December December the the of we've more lowest XXXX. much last last part the years, lowest sales among but of reasonable,
currency would XX% million. from negative million $XX revenues of fourth been have Latin America. X.X% Europe of a down or quarter primarily XXXX On from basis, and currency constant $X impact or The the came
sales felt from the last year-over-year the year business of quarter in was sales segment. in the by but EMC where The drivers was all the ag around undercarriage prior decline sales million declined our the business, $XX impact this with ITM's the in While year. earthmoving/construction by biggest were on impact a units, million largest $XX segment, lagged all globe and X.X%,
in sector construction in ITM's Europe $XX a the Australia. America, reflecting but million – experienced resulting global geographic North America. quarter, with of demand sector The in the all sharp the and continued from primarily experienced in the slowdown. were QX Latin another areas, segment remaining sluggishness in truck primarily America consumer nearly and declines along utility truck decline construction the sales lower in Asia, tire North UK decline on The OEM
being wheel all segments our customers mentioned reasons with the weakness Latin as XX%, America Our to same down lowered previously. XX% production. American biggest the QX the XX%, OEM was volume with North tire quarter from sales and driver American down also XXXX, North were down was showing due sales in
the in Our with basis XX% Australia from last overall on year, volume largest by was undercarriage America. being America, consolidated down sales and North declines a Latin in
Russia just the Overall, quarter was it's Russia. with geographies this slight with on last Price to in an higher costs. related price have than were a positive mix raw slight conditions and and and over businesses volume improved I'd mix of of increases decline. overall impact there sales making that improvement, slightly the of up between was X%. price like of mix in ahead to year drivers for market currency more mostly mixed somewhat were material say while products primary pockets that and
of $XX for profit in the quarter million The was reported million versus only fourth gross the quarter fourth $XX XXXX.
versus Our XX.X% was gross X.X% third for profit quarter last margin the year.
volume but basis this from drop labor As XXX an drops to of point Paul QX due extraordinary we XXXX drop one. a QX business. substantially This in in QX XXXX. peak was dip our was have to a overhead the earlier, and related saw to lack a absorption We described from across margin to normally quarters,
million our In in other driver lower margin thereby, this level and some words, due the variances plants, the margin. fixed have degradation quarter overhead the $XX in able And of leaving was simply labor stranded only by had and sales, costs in drop in of for to high our $XX We by to hitting a in we the costs put. and principal QX, other million needed but were million $XX the we with $XX overhead reduce to million. would quarter labor
over of was spoken the on for impact QX, in quarters steel impact on in have business last what experienced less our North the purchasing than American two QX. QX it wheel results residual some about and the was We significantly we but and there
Now minutes I'll on few spend segment performance. a
American year-over-year had Ag sales in about across inventory basis. down impacted on industry. X% we down this programs the were tire of X.X% Volume and sales Our the production price by $XXX we've a was There due negatively quarter. favorable were XX% the quarter only segment customers reduction million, down agricultural also for on slowing sales were talked XX.X%. previously. a X% North as in segment Currency mix going and
were last coming and devaluation Our from Russian last to and with year, American the European were decline Ag flat while sales volume. Ag from of XX% essentially equal sales our Latin amounts quarter, year in currency down fourth
gross prior profit earlier. portion and but of lower performance mentioned fourth across of the and the America to sales driver the that Latin relates was I quarter in from labor comparable this $XX margins the segment $X.X Our degradation A North largest absorption overhead in agriculture decline lower million million, period. gross from for to America, relates down
segment. Now on to continuing the earthmoving/construction
earthmoving/construction net a million the were experienced currency versus mix constant $XX by in while net XX%, would down Volume in and a basis, have or decrease segment segment XX% was sales year Our by a ago. decreased and sales of XX%. negligible. price On
ITM's impact OEMs geographic but construction their biggest China, suffered. sharp decline as and largest We demand. undercarriage the saw areas in in impacts in business quarter all Europe the was accelerated the
XX% in of volumes to to mix. Our volume last a and North quarter America variety year the were compared due fourth in down
the EMC to closed dropped have as for $X.X gross – $X.X to tire profit in was from actually decline the our a from only million segment year – pivot compared wheel or decline saw We in a million of X.X by the due continue ago. distribution. earthmoving/construction mining Gross to finally, quarter sales margin in a fourth in UK. branches we our million in $X Australian some Europe slowness And construction and the
negative being the component ITM's the Again, was related absorption cost of the degradation. of the to impacts currency segment. of business, biggest largest lower largest on decline margin the driver – the component volume and biggest The driver fixed with
sales up decreased XXXX Now to by compared negative in impact by fourth consumer sales XX%, quarter our XX.X%. volume – with increased And quarter. to the of $XX wrap The from fourth quarter X.X% another XX was million million. about mix the The currency segment. were $XX with being
quarter little has million, real which in market America million impact do year. had price degradation. segment's the segment, was related ago. most to was $X.X truck in to year trend all from profit The which This The in the the volume really fourth with $X been a significant utility down was gross Latin
– fourth with was year. and Our volume is XX% on last gross in representing sales the a absorption margin of a primarily this impact decline X.X% fixed cost Again, from of Latin the quarter reflective lower America. our
expenses. saw and Now operating fourth also X% in lower and million, of we fourth year than expenses quarter SG&A turning the than a the for to R&D XXXX level were $XX.X over quarter lower the ago.
European fourth about quarter, more even improved associated these And have the of for the IPO would another During proposed last with from $X.X $XXX,XXX X.X%. ITM. or incurred we million the without costs, costs we year,
completed phases $XXX,XXX a which to our the had progress first efforts is the our across stabilization year-over-year approximately that ERP year, We decline costs of lower in This efforts towards demonstrates implementation business. the have our we in earlier IT SG&A substantially costs. in
$X.X tax I've to loss jurisdictions. of recorded million as expense and in to for quarter. losses can't able described of fourth We Europe, the due year $XX R&D compared but these tax we nonrecurring pretax full we the Russia significant issue $XXX were target year, the tax million record million Australia to in the benefits quarters, this on current year get incurred losses We expense , $XXX.X cumulative during of on and previous million including SG&A our original to costs.
redeemable RDIF increases from the You'll The item are – fourth in only intend is that stock us. regulatory Russian cash. impacts point restricted redeem of note this quarter. we million the behind no are increase the the interest The the option in to no the put remaining noncontrolling which of related RDIF, there with the do to shares At needs to clear in $XX issuance not time, still hurdles.
sheet, balance quarter, net positive we flow condition Despite to a loss Now highlight in few and to fourth $XX key million over move capital let's million. the were liquidity cash generate our items. cash financial and operating the of able $XX
loss. and free million operating year, the generated million cash a in we generated $XX flow, flow on million $XX cash we of $X For
comes the course, during Of the this on of working second capital of year. liquidation half the
debt declined $XX lowered million. by million balance cash $XX we last overall as from quarter Our by
by quarter, it declined receivables third and year million $XX million the by $XX Our has a from from declined ago.
to due sharp Of sales. course, this is in principally drop
two teams. days of this improved from collection have we However, focus reflecting end year, DSOs days September our last quarter from five and the from by
inventory $XX.X below at million, by end December the levels. fourth ending $XX XXXX million from September Our end of declined of the quarter and
to Our operating the business. made teams management gain inventory progress procured strong leadership on and focus across
capital. across the parts capital That this of said, effect working reduction room another expect which Overall, we there do further modest million any on line is worldwide, business see growth, we're in working XXXX. to for and year, hope improvement $XX into impact improvements a I targeting top taking would only be of not
Capital versus expenditures $XX XXXX. for in $XX XXXX were million million
continued market to or capital our we're the XXXX going less. challenging to $XX hold roughly Given for slightly million conditions,
what in I'll up on little debt our doing bit our with a and debt the cash and we're Now near-term. manage levels to wrap discussion
the quarter. stated fourth declined debt during our I earlier, level As
line outstanding As we with $X used India last completion of in million in quarter. from at and was during We pay down on the million the million to the also down cash of quarter, shares ABL million sale flow domestic our U.S. end $XX excess on $XX October. another XX, the December $XX of line, the of down paid
we And received Canadian operation. pay In tire recovery the able the $XX been insurance in line, casualty the million claim to shares also on of million related to to from ABL into the relating another India we've additional Wheels sold recycling $X February, market. our
we've flow address to asset program sales to time. of the for describing the cash noncore that like I'd generate status from been some
will still sales in we to transactions. February, the million. near-term We transactions we XXXX, first occur at which target and a in of million from other had $XX most have half With noncore expect slightly transactions asset of the now take few recent the us above overall similar $XX
that we're healthy on words, I on business a a global adequate our and what on a in other our near-term cash anticipated this. we manage previously way have given restate daily basis, I said, In on credit will current capacity track and basis. the liquidity far to so levels
have navigated volatility, the challenging market all We this a stabilized supremely year. past in And our position. we've through
are market it We taking continue only that to business to for of in come. these and to up strong investing Paul stabilize to our the are also and thrive not strengthen actions to positioning the us push long-term. each the for set actions – are properly but help and underway, described years we're the us designed to ultimately strategic
going with business Now tidying through an that our XXXX. we started planning Paul our talked I'm for earlier, conclude that we to process would up to discussion see slightly expectation overall guidance about year sales the improved as with flat
to expectations uncertainty and world more last the course volatility the months, even making project very of the challenging As has few the beyond everyone seen it over knows, term. immediate
That profit in we XXXX. in would production include, purchasing from expect material approximately to to improved we profitability be And same said, this estimates gross current American which, have stabilized best in deliver processes which at in enacted we year. to business, wheel control appropriate significantly improve moment suggest business, these actions would $XX sales. flat first, the million in North have and if the realized, improvements time, At raw the would improvements our the profitability steps see
in over to to along business areas, improve actions across $XX costs approximately staffing in business million course out million which the noncore production would reductions of reduce profit. taken quarters the the we've an last some drive annualized gross cost of of Second, and $XX other with our two businesses,
our improve XX/XX gross initiatives million margins. is $X in of our our American deliver designed to should our improvements tire production to business Third, North in efficiencies that
we SG&A any reductions or roughly for $XX amount for meaningful profitability improvement the $X These growth without $XX to million of in million year. expected of our X% XXXX. sales lastly, And to total the target four million in items of
down, our million remain EBITDA We will on $XX a but about toward Paul benchmark and success, target in a maintain And initiatives XXXX up vigilant necessary see of is longer-term The also or during be planning earlier. isn't the we obviously this earning goals. or drive diligence these all talked in the year, game market, impacts our significant appropriately. adjust taking an for if the as we target, our steps as we'll to to
it over like the have. to any turn I'd back operator Now to for questions you
