Thank you Chuck.
levels XX%. from they dollars. is water water During compared were our the to customers likely pandemic their quarter pace. water first saw declined levels for single investment lines April and low XX% manage as heaters in residential difficult interpret rates to the are It of inventory April, adjusting in across average as impact major April product North America, inventory Commercial geographies. our down rates with daily orders differing In digits average we
portion in have New Year Chinese we return and the consumers schools significant sequential manufacturing, sellout retail to a environments. on orders China, compared had with XX% the now the impact able to With access could China, seen and of on and government XX. pandemic too apartments remain quarter. first cautious to improvement of pent-up before volume January and the March. in will in and largely determine our be demand. majority when In A Consumers shutdown early in February the improvement levels it's normal in April installers volume occurred sales restaurants of reopened offices, our
following remained North In And incentive this America, soft environment. we have a in buy has delayed our for program early warm demand residential boilers winter.
of condensing construction commercial in With at sites delivery states, doubled closed have but levels boiler difficult has Our is time last project. extended dates. this from to delivery backlog some orders some year timing
considered strength America drinking of which treatment security of and market In the India, for water easier-to-install we closed direct to consumer in continued we installed products. priority portfolio, products in end skews consumers April saw this manufacturing are worker the products. our during and price, challenges time. The in but this essential difficult lower environment. our is our in Safety quarter was In transportation parts treatment is experienced first to plant water North water a as some product higher country home with
forecast our precision. as not allow believe full we does year guidance. for a result, of the the suspend reasonable to continue environment We performance current with XXXX And
clear, outlook. our of depth practice current return of recovery of the the to we and markets providing disruption look a year end pace become our to in As
operations turn shifted conditions the and other suspended industries similar disruption as Mexico essential governmental We and temporarily U.S. the the customers. are well from In Please minimize designated essential agencies businesses measures as operate. slide to deemed to to to continue XX. under manufacturing to our operate temporary as through to safety allowed companies, as of sort which to allowed Mexico, we to continue
Each with support are we reduced These or day, closer the a manning resume production and a coupled demand will two we capacity. at to when be that over customers understanding in expected move and coming week months. rates of an believe output U.S. for lower to we will and
and to been team Our Again, disruptions components. in monitor and supply availability in chain manage experience middle have we first of early to-date, from chain. global the global supply proactive has quarter continues our
different Our largest than Mexico, Juarez at which are now are reduced reopened, capacity. our suppliers but states in in plant,
We levels. minimal, team communication is mitigate safety replacement suppliers supply for items our reduced and risk While in has and have U.S. manage we stock experienced inventory to is boilers in the the and been our disruption approximately believe certain on ongoing levels with demand heaters water operational XX%.
primarily In volumes XXXX residential recession XXXX, of heater constructed. industry The great was X.X by homes to which declined million XX%. in the peak decline decline captured driven new through trough, shipments water
During do our core the that margins. XXXX, impact in as U.S. products period, were homes provides recession. a downturn XXXX. new operations million be stabilizing the home the to we anticipate our the of to buffer The will quarters new in expected At replacement construction to maintain great great flex three able remaining of X.X as economic we not base
remains retail February slide XX. China our normal order After local operating. and orders, are capacities. network and lower three weeks in operating open in in several than to building in traffic closed with Foot our at plants China turn we are in to for Please low compliance being
you Our prefer trend in not the saw this expect continuing experiencing environment. would fewer are last we disruptions. with products continue to suppliers features, open and as are we year, Customers
Our mid-priced trend. for products are positioned this
and contribution been Product costs, new pillars Despite the are resources to popular one retail has our our our and region. invest we in in products of of focus China development to world. we footprint R&D margin. with around improve reduced investment a China development taking committed Product on success and engineering to continues in to in headcount, cost advertising the the continue most in
closure hard business. the a China returning After the to first economy XX. in is slowly slide of to turn Please quarter,
of April North economic we seen conditions, have or we result improve previous recession. the experience recently returning in difficult the March, and through XXXX demand market. from in the slowly too pent-up improvement early to to While In predict consumers most weathering it have orders incrementally February the America, by if is recent is
in of the jobs similarly it the and massive restaurants, play to impact with to like is However, and out to difficult hotels abrupt XXXX recession. and predict shelter this home state-by-state end if current markets at will closures hospitals, state
site in business seen in we replacement of would have manner before, water of and breakeven In India, country provide will predict to activity pushed that certain clear expect our same impact discretionary XXXX. the we While buffer the spend that would remainder both a target heating to as our job it closure for difficult is construction the out battles and XXXX and as COVID-XX. is boilers be the in
XX. number slide a to of in that A.O. uncertain a Smith turn We Please times, particularly is for compelling investment these reasons. believe
our estimate We demand have categories. in water We approximately heater share XX% product major and volumes. boiler market leading represents of replacement U.S.
have value. in We in categories, that reputation a demographics broad are to we China, a premium and region. to for our Over favorable product shareholder both product and time, maximize quality offering and China enhance strong innovation well brand broad a India distribution key in in positioned
continue for term well as new cash balance to cash flow acquisition returning shareholders. to automation, to and We investments as have with sheet innovation in invest ability and supporting long the the products strong and
to will economy as the in manage seen economic current where North pandemic were reemerge demand to emerge proactively uncertain first by environment begins America we continue the this We shutdown. and now business in the after we our our in have consumer impacted trends as China
a confident through strong has execute which team navigated through our to am prior ability I successfully have We downturns. COVID-XX. in
questions. and for prepared concludes remarks your our we available now are That
