and good Fred you, everyone. morning Thank
I Before like our to two a of in the third quarter I'd the overview provide quick results. key financials detail, review drivers of
in to primarily This on in was new XXX year and to quarter. of outgrowth revenue basis ahead full deliver points the revenue XXX our us our mix, expectations track higher programs Europe. XXX by volumes outgrowth especially driven strong of was basis at puts points. of This First,
on guidance by management cost of ahead better-than-expected was focus performance and our margin driven sales actions. our Second,
on of our few can expectations change. X, Let's to the turn volatility over is quarter, Overall, while to you slide welcome production. past see where has This forecasts perspective a moderate months. continue declined production in industry the these the
under expectations global QX at modestly easy up less production year of Within comparison. that our specifically America Looking market was that pressure. at for market China roughly by quarter. a declined prior North X.X% into than production against we global European result, going as X% year-over-year the down the production X% about saw was down while midpoint our relatively production remains
from on expect On By be full China the a America modest we X.X% now now we're is to worse bit XX% to to to than we a little X.X% planning roughly be region, anywhere now decline months from down is year a to is prior before. in full as which our is to ago. with X.X% few minus down which basis down be a is X% year X% just a likely previously X% North outlook. to improvement market And range X.X% the line to likely which for in be Europe basis expected.
As we we the continue remainder accordingly. toward that we our of the look XXXX into expect and will challenging conditions structure cost managing are XXXX, industry so
X. slide to turn Let's
impact revenue, year-over-year at see divestiture we look we can from earlier this the year. the executed you As thermostat
see you U.S. can the about ago. that by from year In revenue X.X% dollar reduced stronger a addition,
And major outgrowth. industry in X.X% the markets globe. these of the vehicle all around the is items, market organic points were in this decline Excluding up XXX of despite our production. This outgrowth occurred basis sales X.X% the light importantly,
strong revenue digits offsetting strength platform light In commercial Europe market. vehicle on in digits China in new double Partially challenging relative our was programs organic growth. and light basis mix. total that outgrowth this businesses the our off-highway revenue deliver grew organic growth the our in over double we vehicle end-market And on and up more to we resulting year, point to even declined drag last vehicle a XXX in continue environment. than pleased Overall, our we're
$XXX XXXX. income Now, at million be adjusted compared on the million, slide our quarter performance, XX. of was can income which found operating operating adjusted let's to QX third in look $XXX
operating the to XX%, reduction though due of in on stronger actions, ahead adjusted of our a million still X%. conversion which a revenue margin in comparable increased R&D XX.X%, below spending in to the adjusted segment Even $XXX basis, and sales, which result engine million margin On quarter was which was an higher guidance, cost compared our incremental of our was income year-over-year. incremental Our expected long-term roughly of XXXX. management flat our to same included was $X this operating translates
to for above a The decline of earnings per per earnings our the guidance was the driven $X.XX share, and lower and was the XXXX $X.XX compared end higher slightly quarter affiliates range. top by earnings share in of tax Adjusted equity third quarter rate.
to Moving flow. cash
focus of strong delivered continue on we a delivered quarter the earlier, discussed we ago. free the to million Fred In in for flow, is we generation the third stronger cash a result of cash This a same proud million the $XXX great as team. management quarter, As result are $XXX we quarter. year a we than fact, as generated significantly the
sales of the just Growth our the Now, let's quarter. increased Organic production. weaker business X.X% over slide Europe market. in in for million take Engine results the segment Engine billion end partially for on the offset by at sales was despite $X.X impact look XX. $XX Engine closer industry-wide segment our a lower China segment were or
million the $X mix. for $XXX a outgrowth was $XX higher segment driven for EBIT up or $XXX segment of Engine XX.X% China million basis, On basis, adjusted were of EBIT segment the the Drivetrain comparable also On year-over-year, million by segment's sales comparable million on sales. quarter. Adjusted Engine was increased the in in and meaningfully European strong a X.X% sales market, the outperforming Drivetrain sales.
basis, XX.X% and comparable EBIT was adjusted for million Adjusted sales. $XXX on the million was higher Drivetrain $X by in a adjusted Drivetrain spending primarily of million decline $XX segment's was EBIT of R&D sales. launch-related On costs, or China. down driven The higher EBIT
like discuss on our which slide full year I'd Now, is to XX. guidance,
production based that, XXX is of drive to This in to the X% basis flat. be expect of full That's down down we expect I line because year-to-date only to significant XXX assumptions with outgrowth of our to basis global to in the market discussed with year. range guidance points. on Despite revenue X% points X.X%. end to XXX approximately organic we is outgrowth for the roughly earlier, Our market continue
assumptions, prior there midpoint as than benefit offsetting revenue billion million organic in growth of total is additional these the our billion. midpoint organic stronger expect of to the this is of $XX.X the slightly $XXX headwinds an now With The of of range FX guidance we are $X.XX be to that lower guidance, growth.
to our range The in XX assumption. in which growth, Our XX impact our than point planning adjusted and outlook margin XX.X%. now the a organic of to be prior XX.X% additional actions to guidance management the expected basis to incremental reflects of lower full is headwinds relative stronger margin year prior cost relative margin operating the including R&D has to higher margin increase FX our
our our the structure investments ensuring proactively sustained in seeing manage support and to drive revenue overall We aligned we're we the outgrowth. cost to actually marketplace, continue the while continue revenue that to
diluted range share. by For full is EPS, as to by per $X.XX adjusted guidance our guidance year a of margin outlook. Therefore $X end the our bottom increasing our we've $X.XX new result of stronger tightened our range
And million are targeting our of prior $XXX we $XX finally, million now is from free million $XXX guidance. to which flow cash up
spending our guidance. we higher to in outlook. expect the to addition earnings our In midpoint prior capital come guide, XXXX lower at That's our than of
on minutes signed and move we transaction us yesterday I'd to important spend which to slide XX. like announce Q&A, on saw Wednesday, the insurance we to summarized exposures sold a company you is discussing runoff is managing that of Enstar Before company's effectively in transaction closed a in few On an asbestos which a liability we like liabilities subsidiary a publicly traded which asbestos. specializes
million transaction sheet. transaction in entity liabilities. this balance we related cash Then that, involved buyer. this that the the is to BorgWarner including expect insurance investing we asbestos into assets $XXX The entity to in legal remove cash transferred our from holds The asbestos million and the $XXX of liabilities the non-operating result the other
can cash the flow. of was also We exposure and which on By balance running asbestos have company's future you million eliminating the to think indemnity as liabilities defense this $XX range our the sheet avoid our will cash costs the important eliminate of in been on exposure to that $XX strategic we an overhang will slide. million capital annual and liability, this see the deployment to
this Overall, XX.X% above XXX On and cash $X.XX really of of we we that of EPS was solid of we a $XXX our million derisking range points executed delivered had which guidance a operating outgrowth, important quarter as very top market adjusted free adjusted basis flow. week. transaction margin,
our strong continue a historically to remainder profile continue XXXX near-term environment that through maintain while margin taking the do actions free our We'll As managing for to a will difficult necessary likely cash are flow strengthen and into company's generation. we the team, management this of we XXXX. and market expect very
to I'd call turn that over the back to With like Pat.
