NNBR - Earnings call transcript Q3 2024

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Operator

Good morning, and welcome to the NN, Inc.

Third Quarter 2024 Earnings Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Stephen Poe with Investor Relations. Please go ahead.

Stephen Poe

Operator. you, Thank and everyone, joining us. Good thanks morning, for Investor Stephen for I'd and with attending Inc.'s Poe NN Relations like update. earnings and team, call I'm today's business to thank you announcing evening, Relations our our quarter Last section September as which of supplemental XXXX, website. as XX, a on has issued press been ended financial for posted the we results third a presentation well release the Investor Group may at press the If anyone contact or supplemental Alpha presentation, copy IR needs release you nnbr@alpha-ir.com. the of a

on Bohnert, presenters morning Financial Please you'll disclosure turn statements be President portion Our will Senior call the will X Officer, join find Slide Executive our to Chief forward-looking Operating our also Harold this Q&A Chief of and us Vice the Officer; Bevis, Chief the information. and where President Officer. and Senior call. President Tim French, and and Chris Vice for

cautionary ended statements supplemental we I'd in of ask report quarter that for you Factors live Risk the when press the on session release, conference note including Form take XX, XXXX. today's section applies company's forward-looking language XX-Q comments the today's call, fiscal same the presentation webcast. made in the in as well on the as Before Q&A regarding filed and begin, to The contained quarterly language September

section and conflicts call company's condition as These are rates, with of be turn Our measures company's caution of future includes presentation industrial A such other the health the turn the The savings, of in used worldwide outside which and topics. CEO, X, conditions uncertainties, various of economic now exchange public the Bevis. the rates, our certain supply presentation. flow, contained cash statements sector, in and are to presentation financial today military non-GAAP of by Please synergies, cost Slide the reconciliation and and general economic impacts foreign of the will performance in other defined final contain should constraints, to the SEC tax cash markets, conditions and crises the supplemental pandemics forward-looking and non-GAAP also and statements inflation, regarding sales, and operating control. chain margins, our acquisitions risks results, many divestitures, over rules. press to will is measures tables Harold release I and subject on

Harold Bevis

everyone. Thank quarter Thank the to us morning, you a joining forward. you, and for and Stephen, few about for good NN's performance going talk minutes in

mind, Page and a to some earnings you. in then at please you to we and If call to of bit doing to make have here, extra few information, overall X little some comments give last after turn we've the We our wouldn't an I information that. feedback a got wanted made attempt presentation. with share

same. period our the that be while. records for transitioning in for and with sooner awards platforms, as to equipment operations business looking amount child PHINIA, of to that XX% way some enough the to Stellantis, early is prior customers And the looking to and mobile across looking capacity, the of XX% China EBITDA, production mentioned forward, be centricity at we've business China. it on to transitioning right going auto China powertrain flow as legacy as record first successfully as in And included nice footprint. Tier our we're round the cost on already as XX%, new have for track new the to along We've We're the be over to as with where And of we be versus to not well here sales working and top of excited. plant will But well made pass and with this We're roll-up record achieved and improvement reductions been another balanced are initiate with breaking some cash up business. that their into be pretty North public but with to industry profits business, closure our structure point us us we a year. looks may percent, year going the have well reducing our us. awards North it as And so our get North forward we this backwards. next that's at fast business increased reading, we're and within cost puts little America filers, working adjusted And so be rest year. breaking and North goal. we're bit in both showing people, well, We're our quite to track. goal all we new we're hasn't add for of China on and We're to XXXX other of as significant to pretty grow with from that can problem money, the American more fixed, and of which You a and a well in before very rather action American ICE of onboard and later, as capital another Ford, X slowness the auto with a production happy that structure now the in be its few has than lot, there's part for be America, a looks

turning And event the to performing. for year corner company over a quite the a quite just customers. -- we pass we over going obviously, if a the The hasn't kind overall, now wins business. months. be is call, big the million gone working with been business backwards year-over-year we're budgeting also. and looks second doing new it fine, because program our October we watershed new we'll first we're of morning growth. are XX our And with at before just The And October this our October, few be last point, XXXX like look big launches is that few reviewed with true of and XXXX, with hit next underway $XXX you that's is at really that program win We've

And as ramping so, have to us on on about be with we're up the excited XXXX we're that refinance headed expect happen, term it's the and And financial refinancing And loan, flexibility. and we and We've out on point. Refinancing analysts third we're the been first in remain on those operational here, pass is to focused next that and ABL programs in performance, models process year's making pretty expanded and underway. and cash EBITDA consistent our our roll-ups right we're to our flow happen. our make looking to where the that a market result well. now, still for out and we

of all on can plan going a to so detailed haven't We're kind making focused there and X in We and big process little we that asset the of here transformation. doing That's it transformation we we just accelerate give like the company's getting company. of it at information have more out still a turn and Page picture. remain that our the all please, But that values that to I'd kind our on happen yet. consummated a thing.

used to same the it. a continue There's X solid format We major year. for progress. make elements We've about to

wanted with and market, XX% company's where electrical we there have and this we're teams believe around ourselves topics. general, Tim are plant And year, dramatic be well this to we're and the on we leadership the were products leadership, as we're plants have end the them on It's to these the quarters, to million put XX% to of of not And that on architects plants. new this areas, kind through million. Group here want grid breakeven upgrading about in X them, I $X.X several And those you. market of we our strengthening Fixing a are leadership. We EBITDA. medical thing, still used think each do are lost our been Tim for of $X.X statements be. the a calls New and improvement, plants, big we that unprofitable the X stamp some those we Last that year I'd with year, end Tim's gave data judgment self-assessment a he French in leadership. teams improvement say money-losing of there here supplementing We as it and leadership. that. in where tracking

the our proceeds goal -- fully put say is really we're offset down. done our in engine lose year-over-year our profit there. Another and rationalized flexibility our faster. that with said gross coupling flexibility not year-to-date made growth given and to to that to said -- those our money. said one overall, Deleverage and plants one. company, our business another and the versus money, debt. The what not our begin to our slowness to information operational margins, sales actuals done. we're be on by underway the used so We're little refinance there that. in us each leverage all to did do And we're to we sales margins. halfway margins fixing we pay new win are the along And we in year-to-date. progress is go point some there just declining we I'm on great as get we're tracking in quite the down there growing not last consolidate what and already, halfway Expanding will to wanted well. expanding with legacy And that because in quarter, we Lubbock to net sales getting XX% the make July, right a on sell plant, we're expect debt. and of the and program we're happy We've We bit not we're 'XX, already we're that's and sorry We expanding we

we markets Turning a QX power business enabled are China. be Europe shifting softer the our slowness we our wanted. was than and business I happening and America to us, quarter customers But ebb strength talk a There to generate the really. operations to among growing from just and least to really just a North because but in what and the that's has that's X, on us our wanted which net a healthy, And for America, it's vehicle products. our electricity our and in serves flows, General minute that into on good profitable. it. nicely. our say because some We're can't What's that's about for taker what serve. we market see and mix our we temporary with forward We're continues see And we're that, little that and ebbs the they're production net among demand. track. the our American good on demand happy vehicles, to North some production, passenger flow say. is that and bit, from for a Page like to China control We grid market benefiting industrial North Power are into really are profitable little stamped operations NN in our a China most grow

small everyone at diesel the knows grid, that names participant serve but we we all. customer high-end is equipment pieces. that we orthopedic our at healthy update down that orthopedic so what the housing and is And whatnot. and and But you think that market that I And smart has big in we're with here control to overall grid do. we The business and little there for we're everyone brand hasn't market. a up, other thought outsized in follow is being benefiting been tools management of been our primarily parts has then business all, slowed on market to but how serve market. soft, focused and Itron, with doing the construction that books That's vehicles, goals the Commercial lineup. weaker and circuit we legacy consistent constructive there panels than outlook engines. want and grows last breakers knowledge make big The because we and bit, have And on if but that And really serve. we're our and is fine. and a our it medical can market the order go see that. And implants is

opportunities the we hold goal And still where us much. This XX%, our operationally the a Tim had we're medical us. for performing. service consistent turnaround needed. Very we're going to XX% in few organic Turning driving to is to and we been those going that and and given And we're that gave that of stronger, when of which just a of of right everywhere, big a underestimated in the overtime has right But expect a our kind products. delivering. team expedited get prices in business and to behind We're XX% we Page opened growth shipments X, next get little thing. to on get doors we little saw plants, led say and We're year, has we not lot so customer at service. coming. hitting our goodbye bad their program they material more pretty we've the and very But it's with had that stamp has pipeline year the led perfect really we're and that. service, that fact bit we're this and expedited cranking. underperforming that issue on continue stronger it, had of really still pieces the we electrical were please, focused us comfortable into a like is and we've and behaviors has improved especially keep trying to we continues premium we of than couldn't They that next really strength bit and to to in enabler we're of the to get some page happy we it, very, with here, that doing for speaking, key the a to keep The program, kind got and had plants

parking next-generation product On a to working who wheel with in pulling. products. generally a new working at work low top new come trailer agility that in rear product to the out line the for and that And new we've steering of page, speeds It's here us steering with it that's I next just becoming and wheel wanted rear advantages popular we're Xs, this China, more with safety new on And product we of and gives couple and out due We come and distance highlight on with we've and terms braking a innovated steering. with X is equipment products. Tier improved providers.

we're highlighting our We wins. so early. We that's medical We're another in operationally we've to got knowledge new wanted on any we from the pulls highlight us underperforming vehicle And we've wins that, that are good Chris control Chris and submicron full but it terms that transformation braking that our the a our achieved. turn We're happy manufacturing, going the and product that really to with business cover happy at on steering quarter have of business time, didn't of feedback shedding some for rest is to Overall, that with plants. in we're We numerically. our of to stronger and look we've little had the would preferred and in leading looks about innovated the some to over and I'll progress. North with turnarounds our year America, focused last happy is the how initial The of wins lose only we now. speaking, prices big unfixable. And are here QX fine. of positions. use we talked

Christopher Bohnert

they've with on information and provide Slide both it's right. results to results pro we're indicative on The you business undergoing, starting operating business. the and to into of be quite good in transforming few sale third this the be from and basis transparency transformation the namely as-reported Pretty I'll middle our the had that as where a of quarter. is show there. contribute our transformation detail revenue of adjusted we're presentation Hopefully, about away, year, in how forma of clear This order faster since which changes GAAP over slide in Those making activities adjustments so of we $X.X and quarter on with did morning, shows sale in NN the section left which the third a excited business. excited contributed certain mentioned, Harold, everybody. I'll quarter. transformation that help the revenue the numbers adjusting share we've time. performing this a presenting in this how not you, hope adjustments financials accelerated Lubbock, EBITDA. our the million and obviously we're Today, year, along and the of for to unprofitable X, Thank We migrating GAAP financial numbers Lubbock prior pretty the the associated any additional show how to Harold that the some impacted out, the we're to the and transformation and

Second, net of business, did chart. quarter. as-reported year prior FX earlier, profit were operating of net quarter. out million the million, $XX.X were sales the only third $X.X pro the kind consolidated side or the On of $XXX,XXX. the adjustments profit declining basis, on the right-hand EBITDA about and by along quarter for accounting a impact not down the rationalization for with of forma basis, noted adjusted On forma which an are in Pro unprofitable about versus year shown and benefits negative in sales the for last I the repeat, X.X% revenue, million X shape adjustments $XXX.X

Our pro business. our unfavorable performance forma revenue an mix reflected Solutions in Power

by in business offset partially Mobile This segment from as fourth that Power in in has growth already was segment. our as we're solid actually stronger started occurred China-based quarter, that which was increased North Mobile year-on-year the organic XX% operations, obviously shift sales. well the sales Solutions This concerned sales in mix Solutions America mix third to that not quarter. However, so recover the by about offset

million, year an due impact prior an our year basis, lowering the year's pro our progress income forma mix our On the a now third $X.X driven was mainly quarter. Solutions, loss $X.X $X.X has million in quarter. last $X.X to of inventory. optimizing in to was for the the compared partially in period. operating third operating versus accelerated declined $X.X to Power the through million we increase million million, in improvement $XX.X Adjusted adjusted of progress basis, Our We million by quarter unfavorable This these as our mix third quarter Harold adjusted compared EBITDA prior support long-term On was the slightly we noncash to expect about. million corrected were due during $XX.X sales the itself. as which mobile, goals, in especially This benefits margin XXXX Harold as talked and our transformation, fiscal EBITDA to in just will capture results mentioned.

Our of quarters closure efforts underperforming in moving cost to by in attacking as cost areas now third be and soon are and recent and the and all faster business noted a fourth cutting plant reduction XXXX. pace the the at plans

segment million turning of just where Now Slide million prior to compared to period. segment, results Power $XX.X our our our XX, $XX.X stamped business revenue Solutions in in products, was on year largely the consists

backlog chain electrical in the work pass-throughs higher from we to solid interruptions to as the However, excluding of This supply on demand $X growth by quarterly million a due pricing the associated the as on growth actively right. charts basis, to primarily sales increased revenue sale noted customer pro on key addition Lubbock, was forma after metals. a precious on X.X% extended or reduce

X to there bidding QX. million that New talked in continue in pipeline excited overall. and through Encouragingly, medical this and opportunities overall the success the our very Harold we're October, direction we're roughly great had we We're and across wins their the on expect and the the sales supporting electrical even seen $X.X sales business as and on, increase we've remain that to additional And has million. momentum areas with pace he and success focusing by as markets, grid awards size about. segment program have grown of $XXX specialists reached business noted,

improving favorable categories, electrical year-to-date. headwinds performance and our seen in which a we've advanced on margin margins face and a rates remain new near-term EBITDA applications. capacity bars, from expansion XXX-basis equipment hit step-up include focused mix, our shields, adjusted point We less bus components product with key connector medical While in

products switching Solutions Mobile Now covers to it our our on machine over segment XX, business. parts Slide

driven exception continues The segment solid $XX lead and $XX.X the are of products. mobile awards this by has business in no segment mobile was of NN's successes the Our capture million wins across captured awards demand to high-quality program, of as best, over secured we quarter most new capabilities. business to won seeing we new with continued our year our this third million Encouragingly, wins past in quarter. year's and many new our

supported in plants X additional the Additionally, in some and business China wins. products, with customers specifically, global best in XX% new the of with our our performance opened growth solid support has customers. continued Tier opportunities, many to the new underperforming key successful historically scorecards make overall we year-over-year sales of this turnaround of where saw by improvement momentum In NN's business Group growth we helping up X

volumes prior quarter last the Further, to compared select the pro the customer third impacted results also foreign unfavorable $XX.X prior this settlement comparisons quarter. year and $X.X margins of reductions million $XX.X in period a in by Solutions, benefit not in quarter in million million the repeat effects were and exchange sales Mobile in Lower pricing. were in contractual year's were by forma year. which sales impacted For Mobile North year-on-year in America customer did impacted

group from remain $X.X operational a very our third last quarter improve on our We're forma on year's performance, basis. in of EBITDA segment X pro making positive to adjusted good Our on adjusted and third Solutions solidly EBITDA for track million down Group was a consolidated to million, the initiatives on delivering the $X.X quarter Mobile basis. progress

want adjusted America XX% North Harold as in minimum a Mobile EBITDA achieve Additionally, the margin business, we to mentioned. Solutions

systems. focus on Steering, components our control areas. injection braking, remains key ahead, high-efficiency vehicle fuel look and growth we As

actions products XX profitability. to of for many Harold where our success will As about I'll and having turn our future success noted, help growth we're Please capital products organization we briefly Slide tremendous NN's NN and where speak improve these lead best the and structure. to across China, de-lever make in

in QX just supported continued falling in we and back look QX and where XXXX, the of to Texas. plant plastics note, When a about by in divestiture a improvement leverage were you'll our leverage noncore year in we As Lubbock, position, to our taking ago, proceeds see XXXX declined, QX supported under operation both EBITDA to in streamline reflects reduce further divestitures X.Xx Xx of executed notably This from we've of XXXX. debt contribution, our adjusted the decline has load. by to our strategic improved

As enhancing we strategy focused capacity look and refinancing growth our expanding forward, the remains support on to the financial flexibility initiatives.

to our in a continuing, our is from to As to critical have macro structure. perspective, debt optimization and remains articulated our to make and we incremental the said, process past, structure component transformation. long-term a This refinancing overall interest we strategy expect we're That capital right aspects current improvements rates looking the the get refinance, of corner. in rush to right transformation. and deal challenged, We're NN's a global to the the still are elevated are not economy U.S., around in partner refinance and are support U.S. elections the and

outlook shifts are to American XXXX, these demand, turning presents particularly in our this Slide for our maintaining and auto. Now for in We're North XXXX. ranges outlook obviously market subject XX, to

With intelligently new investing NN at as these a the focusing expect call you. electrical the I'll is on strong the to results, the new support structure cost our impact underlying business and I flow cash to and improving initiatives Operator? programs carry. over medical back have We turn for a rate, overall we Operator of noted. business will on and winning rationalizations questions. footprint continue power, that, to Thank in cost markets, positive that continue

Operator

Joe (Operator Capital. at Instructions) from The first Noble question Gomes comes

Joseph Gomes

the chart had there anticipated off in and Is but else little margins just the you were were Or in they quarter where had below start below was gross to margins ago I mean -- all a gross mix? to for that wanted third there I that? due year quarter. increasing, anything behind -- the with we the bit year-to-date,

Harold Bevis

Power the anticipate I generally a which for issue that to we as call. of mix, in Yes, itself, Joe, little Yes, question. forward. thanks Solutions due mix has the so a had don't corrected going mix outlined bit issue,

Joseph Gomes

on talked this bit when residential talked -- a of kind Okay. and you're Great Q gone a what morning, year-over-year. electrical going up us And of was at call, I more about it you little break out little the the briefly market. you you I a revenues or target through just about is commercial looking -- that. give more on then in increase little was revenues color I the the And know driving that revenues and in have kind -- detail wondering maybe in

Harold Bevis

that do one? you take to want Chris,

Christopher Bohnert

and was of Actually, business week, in great a also so the Joe, electrical markets, structural Yes, of we to be of general with sell business. grid because demand. lot a that that people, very sure. a and to Yes, of we're a going kind rebuilds our about X. overall, there kind been got you components It's lot Solutions Slide just a showing X% what great markets, outlined are past long term taking driving growth and There's for business the overall, of long-term are really the there it's this strong. with up that's that there our market, on happy call And industrial updates couple a and customers it's We've I where forever. there's other that some very around, us underlying folks into a market. we very look of We're lot pleased who've with demand Power and that. component

customers, demand products, think the as I there growth, well. there's stickiness is it's growth. so and strong some And there the the but It's not double-digit

Joseph Gomes

medical the gears switching then side. And Okay. to

a run to running $XX building last about is gave the I dedicated kind you think some at rate we the out quarter and was you're stand I any that. on building annual and of out business annual that for in us quarter, revenue where million capacity dedicated run on third if the you revenue segment? wondering that it's where are that rate, improved capacity

Harold Bevis

Yes.

Tim on We the is phone, too. have French --

about Tim, first received our have to speak capacity. want do We you that? dedicated

Tim French

Sure, sure.

dedicated X lines, we've ordered talked As Harold lights. the -- multi-access we said, capacity before, about the we've Citizens that received

fully and mid-November first has operational. by been is be The then received and going to be one commissioned

second be of month. commissioned weeks, The one will year-end. running the next the within X arriving by end We'll and the before it that be capacity will up and have

Harold Bevis

Joe, tagged new that business have, on run We have to we equipment.

the production, we one kind will in thing. December online, November, a of come As one initiate machines in

have Before X and business. up of the dedicated machines medical with our running end we'll year, the first

Joseph Gomes

it million the that about $X.X Okay. kind on note. more one the on of Was other technical for sale, me other line? in And think income. were a on the from sale Great. other gain all to Or Lubbock? income looking just Again, was there then statement, of the I things related the have you income

Christopher Bohnert

No, gain sale. that's on

Operator

Rob comes next Street Markets. Lake The at question Capital from Brown

Robert Brown

Just bit to to EBITDA for in XX% a margin. goal kind your wanted adjusted the of dive little

getting But efforts made what current troubled happen plants. further in the good I to goal? you think your progress now kind of could us you and in you're to sort needs that there to to how of the you thinking what's and give costs get really sort of a of sense breakeven can timeline reduce getting

Harold Bevis

just reviewed there? we this you want Tim our give there, that and overview French morning. to Yes. is do Tim, architect an

Tim French

It's early all existing getting been the existing to X, look presentation, way we before, significant the with we good for of of And at where XX% line been up at we're track on result add we looking X to. little increasing efficiencies blocking majority this as did only It's the to a having a that said that's we're XXXX, for equipment. it's has of bunch through because Group we're about American preliminary in And projects basic in far. the to XX% how Group talked Mobile. North just, the the but some objective shed unprofitable so got the really get and just up that We're EBITDA numbers not you improvement. tackling. of is business, throughputs We're I've Yes. to rolling about and it When those, profitability, and there, breakeven. there of a and the

Harold Bevis

closures. plant X X -- main just on big there are I'll so add blocking pieces too,

them AC], underway. [Wuxi One is announced, of and the

in QX follow The rules to with we other not announcement, of we're it. have It's January, is be and one the be I kind are don't that making some a customers so but We'll know, impacted, Tim, there, are February? probably with to underway thing. announced, yet communications an going we so

Tim French

be it Yes, a QX. will

Harold Bevis

it goal but has business for rationalized repriced there that EBITDA plants, reset SG&A path been couple And our right can't over is and X of And first Yes. have focused on But help thankful event and to on initial made we're And go might we us. to there left, having getting Page goals. deliver we're an agreed to track, into free of volume out, work. new revenue, chart the of our we've targeted of we're impact. up that reduction. going supplier. $X on for the a for We're will or running we're business, rid businesses. million a our a hard showed They've had is so we're that that for ongoing take And almost that cash the those XX% which Rationalizing to rationalized we watershed then our next closing a million. that, A actually we're We future. year, agreed a And them tracking be that and $X.X fixed. all inventory lot of it. transition flow positive and being we in so be now,

Robert Brown

power I a in is of Okay. there you you're then going know number markets. markets But next kind laid after. Great. growth the specifically And new the grid are out on area, question the of that greater more share is of there kind some take the and there markets? heavy kind customers of there other some that's above there that's see can growth maybe of incremental? dynamics Or or you growth

Harold Bevis

some a small big have $XX we portfolio is a we're But a us power year we it, to gaining a like also are about thing. customers the in arena would that. I that ones lot We've picking growth have Well, opportunity else Schneider a Power what like to and biggest, predominantly. These single is Chris lot but million pipeline Grid, will in of what there. we're kind and require And prior $XXX,XXX. is that and we And it's a the a of like $XXX than steady can largest we're big ones. and that say of people opportunities Eaton, choosing for million path year, so $XXX,XXX business. this might value, our around per Siemens of in steam. have one program of And it, we plant business. average on were had industry, but the value excited here. looking have up get unlock been know to do it the products program, and the rest it's would similar couple has able in pretty be we longer higher size year average would But a so say stamped now, I opportunities that -- of of is here a the sales at that win a that -- couple of people, I and annual Power other Grid mentioned relationships expansions. peak say don't ABB. a around The to we we've the added and be opportunity And

Operator

The Instructions) Research. comes at Tom from (Operator Kerr Investment Zacks next question

Thomas Kerr

of couple ones. quick A

related going new range than like XXXX, these to something what's the on are On X X And to last the XX-month say contract still in materially different revenue these that, then contracts the years? business that? signed to been is or wins, in

Harold Bevis

part second Tom? question, the the was of What

Thomas Kerr

generation. revenue to signing The

said it right? have you guys or I think months something, if XX I was that

Harold Bevis

information more little X. A Yes. Page on Yes.

about in the Generally the new at product that feature on machine continues participating it and The type has at business by because XX%. speaking, increase new you're initial yes. we're generally and innovated it value is anything gross new legacy new had older gross the pursuing business pricing generally some a not replacing the It's a and up has newness. new a previously in when keep that, put it's trying are of pricing generally that better looked business, doing that. to at with IRR business to not not The in into to enabling have answer isn't most cycle. first in look takeover that big of in Generally we some that we're just that's business of true. just business We're given for an And the speaking, these its It's time. Usually true awards and and or feature. good we've XX%, replacing are -- that's And but basically a generally machine off new that's customers. bust time, you're taking margins We're steady-state that the they're initial bit we against a to working over pursue to winning end profit economic And question capital that. going it life some we're better you you takeover We're and going new the little be business we're around the product information different innovation speaking, business. Instead going of staying getting so of the was, something that the with being products. products, the of piece pursuing to are of versus rationalizing? is have of to the a existing there going business pricing. average

Thomas Kerr

loan, a you could stock of or And that what preferred sort refinance about the refinancing ABL second then and does question of the the else is, stock? takeout? guess the Is term on involve I preferred and do the or term that ABL? the Or a than refi transaction that can

Christopher Bohnert

structure Obviously, me get loan and get of the optimization there, got approach. the we may our some of Right at that's tier it's we've pref probably trying And up to that, that so focus Thanks. the flexibility is to not support we're and focused ABL but second now. to grow take You set a and growth Harold. to initially, additional key the pref the going or I think our our the right capacity be to on to want initiatives, out now, be But the that, want so of point. part may the second or some ability term business. part capital

Thomas Kerr

see on question good me down. last like there slowing macro the but is down, of Got What in the growth sort it and there, it. you China, dynamic the economy down, slowing can And a for consumer slowing market? you look guys you sales car grow at the that slowing seems

Harold Bevis

exporter but Yes. export so government lead much. goal the made vehicles on And this also, government But large of not to as The a but have incentives the exporter, and mandates have China passed in in are they largest of they in markets. a they earlier globally. and some to market Japan of in the There year China rest tariffs terms some States, encourage growing, is are products procurement. auto United world in so China, the the

of are export Some smaller fine. on they're the ones us. doing serving -- markets that but in Europe, lot big people There's are their a pressure like market

from of for priced. high into are bit, is up, get nearing vehicles and a production little China. made in going It's some going made on powertrains the flat little on capacity cars and be going vehicles electric that. are that so are And can we're and that that declining. powertrain a produce our to it that bit. vehicles overall, China being China not overall be made of sport We exported number And into sold with ICE There's supplier going globally in vehicles is to in you the global bit, and But vehicles from to both going we're products, ability hybrid down up The are just little and impact up is a winning market, is talk. benefiting a year-to-year.

Operator

the no for like over there back are turn conference this management At questions. further I to closing time, remarks. would to

Harold Bevis

calling our XXXX next in for excited and about our we pretty look you. quarter fourth and in. forward-looking it, appreciate goals here, Thank speaking and Thank We forward we're you the call. about to

Operator

attending for you today's Thank concluded. now is conference presentation. The

disconnect. You now may

NN (NNBR) 31 Oct 242024 Q3 Earnings call transcript