right. you, All Jim. Thank
As improvement bottom but which in sales were control our at Eric did noted see consolidated to offset in increase. costs earlier, with the temp that second gross margin our lower impacting sales the we level, down continue our factoring line, quarter rates,
as levels, great also progress We made Jim noted. reducing inventory
give we an color for on through more As on key other financial year update in our the XXXX. year and I'll and as so the well as these items provide the drivers numbers, for far quarter outlook go full some
First, segment. Vehicle looking our at Control
of decline billion offset decrease the of as customers sell-through net see we the other a that versus to in continue increases on by partly with were customer, X.X% bankrupt slide year by last quarter from favorable QX You the can with impact same X.X% down sales see driven trends. a the $XXX.X
of For impact for customer, the X.X% drag despite the first X and growth was so months products our a also continued X.X% the in demand Vehicle the bankrupt Control, for year were result favorable far sales year-to-date, of sales up with as a sell-through. the which on
and factoring profits segment up and large Controls we of more But were in XX.X% note easy this last adjusted comparison impact QX net this X important quarter up as an normal against showed points QX EBITDA Vehicle at a sales inflation that to year's year. cost was from saw last it's and a year expenses from level.
quarter rate segment adjusted factoring the a offset expansion first last factoring overhead from by the point a result basically which result cost saw driven Controls increase as year, the was quarter, for overcame of reducing customer savings of mainly unfavorable Vehicle of initiatives, and this Controls gross and programs. or which in the in X.X the adjusted higher inventories EBITDA months was XX.X%, margin $X absorption margin flat expenses. expansion Vehicle EBITDA million XX.X% X in second a cost pricing as with
X.X%, was X from quarter months, quarter Net sales to Eric that for mainly slow sales of expenses. Control. to out. the and the and EBITDA months for Temperature Controls of million down first due X.X% the Turning pointed the lower periods in X.X% sales down for start were we season, to with net higher X.X% Temperature factoring net segment first sales selling X were the last adjusted year, in a both saw as as of sales $XX.X and down
actions adjusted gross and reduction production for factoring first significantly lower SG&A than points months leverage sales in lower offset And more with X.X this from Looking inventory and reductions and in to down programs to savings costs was more slightly, pricing margin for rates as a down at Control combination customer the related the and of lower X.X margin higher closely, led it the Temp quarter EBITDA. segment. rate points X
segment for $XX.X of Engineered Solutions $XXX.X our were in X%. the first sales Sales for months X X.X% and quarter of were million the up million up
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net and resulted dollar in the overall, for While our our first margin improved respectively. and quarter the due months and overcame X.X% months, X to rate gross sales quarter X margin gross of were headwinds initiatives consolidated that increases first X.X% both for and lower other
factoring year. sales page, well the of expenses, line cost last customer separately SG&A in which Regarding on programs, the XX.X% and the with controlled shown net in are at of quarter were expenses excluding
of in year as higher at bottom million gross were consolidated costs. and XX% offset with rate margin last flat adjusted was improved Looking of factoring income operating $X.X quarter an the EBITDA line, the by X.X% of
as only factoring months, X down consolidated higher improvements gross income adjusted by and were in partly first operating the margin. costs EBITDA For offset were
was months, in which due expense rates. X for EPS but mainly through our Lower dropped higher the million share, the line, X lower interest you and for first due quarter $X.X interest was $X.X As sales, performance higher $X.XX to quarter in diluted of for earnings to earnings mainly can resulted temp the the by in also to control bottom $X.XX first the and that see per months. million
our Finally, results. point on one last
XXXX. the know, discontinued the in report sold As we you in relates and to a results business operation each quarter, of bought which XXXX subsequently
approximately noted operation. for a the damages. discontinued of favor party the connection proceeding in ruled morning, this March As this XXXX, our for of with legal $XX claim the press involved liable a we was we other such, July, a since of the charge this and in court for incurred in breach In found amount And in in release million during were as contract quarter. company
of item we key last $XXX.X in from to The we $XX.X that the December $XX.X year is year as finished balance to down down June and now typically Turning of last in the which flow of X improvement Note control in temp anticipation here this almost on the focus half QX year, in in and million during our a the inventories sheet. first of reductions of cash reduction year. year million of from selling inventory this when million inventory level first first area. the continue million represents $XX against million, build in this months average viewed the $XX the season of significant increases half
million last improvement our million flow the from the flows as the to compared generated cash with cash first by $XX.X flows, cash X used reflects in cash of first at year $XX.X operations statement driven months. from looking months inventory in in improvement of cash $XXX.X million And a X
significant credit $XX a the result operating cash million shows in quarter. improved made financing revolving our in by of repayments paying as flows and Our activity down $XX.X of progress made facilities million
also during the of We million $XX.X first paid months. dividends X
Our both with leverage a at borrowings of than last December ratio lower and $XXX of year, June end much the lower last than year. QX the and were finished we of quarter X.X% million
sales I year give and full I finish, XXXX. an expectations the our for want Before to on update of profit
in in X.X% sales, typical includes the line sales a percentage I our rate to business. than year us we'll full things: year is hurt single-digit just will last that and our to X prior flat XXXX softer for growth quarter is is growth we performance. and noted digits, X leaving top our to lower of was the half estimate sales half will see sales result First, expected, The said, as last that approximately Adjusted expected our morning. full in and this we than be Regarding estimate second low lower low first be months, EBITDA year the expect single XX% were our which through second of year release as terms flat a this
warehouse year. the outlook and and Reserve the these prior Second, end the $XX second where recently expected Federal overhead we by peso duplicate weakened at to distribution beginning our U.S. rates. Polish majority in those when the in top our costs dollar in weakening in the inventory expansion turn, of we've range, $XX Also, new million production additional interest million the rate are increasing result June will locations. international the and in of announced Shawnee, Mexican increases anticipate to the costs significantly be using expenses current of capabilities start-up seen a for factoring our are of output zloty of half located, And cost in finally, Kansas the and operations both against and in
about on expect million we $X to to depreciation In outstanding and EBITDA, rates. Further, we connection tax with and rate XXXX. adjusted income given higher average debt interest with be interest expenses on quarter expense in expect amortization our line our be each
we're can levels healthy cash operating years on XXXX, track return to consistent flows full Looking to operating past. you cash year flows well with see at in for
for team we wrap much gross we improvement members efforts the as all slower To up, and the were of our very to than quarter and report you of were improving very our margin flow your rates improved Thank sales significant appreciate while for year pleased cash in business. as a the well like, in attention.
I'll back for Eric final call now comments. the turn some to
