everybody. Jim, good Well, morning, thank and you,
to the and said, had are as ever. overall, will for continue of to different with year pleased once basically we we'll the review challenges, quarter dynamics though whole, that in we two divisions separately. past the So these near we're some certain temporary that With create headwinds there were however, so it's confident stronger get them our which be term. than Each issues, best a
longer quarter Let's our up it's Engine quite strong, in ordering a over said period. many and tend customer's look patterns, start at to will Management. with depending to the quarter-to-quarter variations as we've it on much Sales times, But be there therefore, X.X%. better were
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production the The Orlando our of transition half complete of Kansas we and this of second which will quite savings already underway second electronics But We've all is the the the Independence, second the move into really and quarter year plant is well. going eliminate the the begin duplicate relocation of when moved close year. be the don't overhead. in most until
new The which program, vehicles having a and have do to are acquisition, with does that lower of near-term, this them Cable more than our sales in have Engine gas long to shift. of run, is impact in able it And other good our of which compressed trend a sales full are them some East. the costs of overseas. this margins. higher materializing Far as tool net gross heavy-duty categories. plants injector our seeing margin products having that has pressure but the the until profit business. part SG&A, in success moves, in healthy. product traction. we're an in as It is sources also of our in is to business positive all piece programs, get so has gaining and was in a Management margins, a is other do General the although demand sold seen original an tend the or of These But new of A seek lower also increase the We're the and have plant some increases the recently to OE, our the lesser extent OE remains shows to we're we aftermarket mix tend We've is we low-cost big much largely X/X on equipment natural result
confident so a our future. will that margins typical these have types track cost-reduction lines of in we newer activities, product in to these able in I'm solid We achieve the be record
Okay.
of year-to-year obviously our is heart is Let's move weather-dependent to Control. Temperature The gets. can control air business temp and depending how up vary hot or which on it conditioning, down
as they year. order customers a and when sell-through their our Additionally, manage to the there tends inventory seek to offset be throughout from between timing experience us their
back heat, orders, the explain half their then XXXX to light you years. record in need our year XX% were But shelves, So really inventory. saw spent and on ended materialized. go then placing XXXX X% that of restocking half. and the recent the customers They never first therefore record first X through quarter XXXX to up of events, the summer preseason
told down their quarter us you call, approximately us out purchases purchases our customers that were their were by for down from of sell-down we quarter on XX%, their our the the sell-down This build. from third As last reduced into reflecting X.X%. XX%, but preseason fourth continued as they sales
for So down were combined result the the X.X% year. is that we
because still are release, also with down expect XXXX for comps. were so strong a out we half of half difficult inventory sales customer However, above-typical will X%, make only the in but the mentioned some they press first not first about sitting because difficult as
still being activities. pleased that reduction profitability how Meanwhile, temp result our guess. it this cost it the some control comes all which of in which hot summer, improvement down benefits is with of is to major we're said, the Now within business, anyone's gets very the
Yng, are from in also we're of Gwo move And We Grapevine Reynosa. which the seeing nice improvements some venture to with joint now very China. is production our complete from
that with back acquired footprint of significant compressor FGD. working recall, compressor It to main our fit operational us. in known will great well-established, has with FGD some formation now was provide inroads I one a a joint make acquired Mexico. long-standing more note begun us our suppliers just them we another in effective. should excellent supplier to are FGD out them for important of synergies for and to and to added We've high-quality, manufacturer make plant area. In this potential a Yng. in of Chinese Chinese you the combine been venture about to low-cost selling coming China. market, half excited have If the to in another of We provide product the Chinese year, our you when hard OEMs, the last we complementary especially improvements fast-growing so of taken step the they XX% of low-cost with November with we as them categories Gwo also on entering XXXX
the now Now still its this very foothold a much region. we're to is have in early but days, in pleased
And than strong are a these are closing, fundamentals there we a So with, some to short-term strong once we are in continue in us, have the dealing be issues place haven't and market. And stronger behind stable ever. while changed. short-term issues we'll
I very as So talented we our to without for and happen, dedicated the about to so they all note, make such, future. all helping them I must do. happen remain people want thank it couldn't excited it
we'll over I So back to with it open that, turn for the and up moderator, will questions. it
