Thanks, Chris, and good morning.
business next slide. our highlight like the I we to Turning the the would to transforming streamlining achieved, progress operations. and have
target our are track XXXX. to on end savings run billion of the We cost rate deliver pretax by $X
is to quarter, contributor $XXX program fourth date. We rate aggregate to of savings This plan throughout initiatives pretax to $X savings our bringing volume performance million team's supply transformation including our our the than billion savings achieved over the were approximately run largest to accelerated since in ahead cost offset inception. efforts chain slightly headwinds macroeconomic that greater fourth the expected the year, remain quarter.
Strategic during sourcing as
we program, holding the this contributed savings year. early in the we contributor XXXX. and XXXX rate savings, expectations to strategic to and case inception, be Consistent to set also sourcing freight in margin to with demerge leading starting the be and at expect addition improvement In throughout transformation to expect the
on progressing excellence optimization are improve to production our centers the and programs on Our and segments. expand The regional projects track to program productivity operations in various manufacturing continues in lean across network schedule base. during This into of execution. redesigns also underway. qualification, work excellence will are are distribution XXXX transfers cost stages with of efficiency footprint-related and business scope center further Similarly, in testing principles both leverage logistics manufacturing stream drive
transition discontinuation products. SKUs XX,XXX they Concerning our to complexity customers and are reduction, replacement approximately have assisting as identified teams for
as We are generate the These expected end of of of have in over XXXX, SKUs billion more investments in XX,XXX actions approximately the growth additional to savings supporting our XXXX, funding successfully with of XXXX. business. eliminated core in $X.X expected
become adjusted move important we needed and you trajectory footprint lumpier confident and gross changes would efficiency a of result We our next platforming those to transformation our cost will into XX% sustainable more return or margin support remain as As expect. the can such savings the greater. product that to our transformation, as cost from in phase
$XXX in of inventory of gross middle quarter, approximately the billion business billion for XXXX next inclusive our This the during the infrastructure areas million attributable brings reduction We in were the $X.X focus million to sale held our inventory free approximately of to fourth expansion. approximately Moving to $X.X accounting. slide. primary by flow and of Two generation $XXX reduced cash and since margin XXXX XXXX.
and inventory flow to throughout remain free debt of $XXX in working profitability supported by flow. free the optimization fund reduce $XXX improving used cash year. reduction Our We dividend million significant which versus focused generate efforts to addition year on we million generation, prior to approximately disciplined our capital cash the
initiatives reduce range increasing million, $XXX XXXX of $XXX support is transformation million generation, capital versus to These planned $XXX to predominantly in of cash plan as working expected continue million year in flow range our $XXX XXXX. for underpin we we efficiency. between million XXXX, inventory $XXX $XXX CapEx cash the organic with footprint-related full In by to million to million. combination to prioritize items, to free
a spring As for cash profile season, XXXX typical a we expect our for quarter we first capital typical outflow. working as selling in reminder, build the inventory Tools operating Outdoor the & resulting
balance consistent, Our and cash return our priority value strengthening deployment to our for funding capital long-standing commitment investments, shareholders dividends to remains sheet. further through making transformation
more benefits lower prior the profitability. costs, which to points in XX.X% margin costs, chain and by supply objectives. up the profitability chain than offset we to Turning from conservatism fourth quarter Adjusted weak accelerated the versus outdoor gross was XX.X year, driven and inventory intentionally while demand consumer of destocking actions impact gross channel of lower transformation shipping supply margin our meet Adjusted inventory ahead flow finished lower transformation and XXXX cash as navigating plan volume. in and
point X.X to better was in pricing than promotional expectation quarter. lower our Additionally, mix the due
on were XXXX transformation selling adjusted margin margin season. able into end that pressures initial will continue gross moderately given point the gains that above that while the second disciplined and measured adjusted half guidance, half margin demonstrating our of managing outdoor trajectory. management to notable X to We gross on 'XX half our This our XXXX, first the approach of to the we our is deliver targeted cost improve high accompany is XXXX second
the approximate and XX% XXXX exit for to planning adjusted year full low in expectations. gross for are year the expect with prior margin consistent the XXs, to We
plus We from are enabling and historical and on navigate a margin, supply adjusted to incremental long-term are XX% significant growth. $X.X our throughout without leveraging transformation macroeconomic the year to reductions our restore investments We tailwind. hard chain journey gross our billion cost made accelerate to another our of revenue working efforts organic progress XXXX
assumptions. we turn and our margin to flow planning the reiterate, and be where cash XXXX for let's we gross are generation key to year another remaining prioritize To guidance Now XXXX improvement.
flow to a per GAAP cash share per $X.XX range year full range free of are range an We million, earnings share earnings to to $XXX $XXX $X.XX guidance adjusted of $X.XX initiating of million and $X.XX.
Together, consumer We Conversely, expect professional result for these persist. dynamics markets. and in trends of to relative our strength demand in for in for prepared demand tools weak negative some markets. are outlook in aggregate our we a modestly industrial outdoor
share midpoint, planning businesses. for the We supported at to in relatively be targeted by organic flat gains our are revenue
range minus with the market growth, volume of points the variation EPS representing X plan. demand Our the plus contemplates or in scenarios
positive is divestiture midpoint, leveraging organically, win share investments to of relatively aerospace focus before model fastening driven gains, resources as growth to is The organic in well business to by be Tools and through innovation, slightly & behind expected leveraging industry-leading Industrial at the in primarily XXXX signed QX deliver as flat be share industrial Outdoor strong field markets. infrastructure expected flat expected the by revenue and pro general segment be Industrial portfolio revenue brands. softness destocking with our of to relatively consumer in to the moderated in gains. electrification core our recovery market closure expected the is our to and
long-term share and to innovation, STANLEY CRAFTSMAN organic an will continue powerful and incremental gain to and million DEWALT, activation We invest brands. market $XXX and to to XXXX accelerate throughout for growth invest plan our support
includes which is expectation remains investments. sales our a with consistent in XX%, XXXX around Our fourth SG&A percentage planning quarter that of recent as
profitability. to Turning
be in planned up EBITDA Outdoor for transformation of full operating Tools Fastening ongoing the in prior offset improve margin business. We our strategic dilution as is the & expected Engineered to from Infrastructure slightly the Industrial the The approximately to be program. transformation. the supported improvement year-over-year, year, momentum by from is expect margin benefits is the segment XX% versus flat to announced total driven to continued year of by company divestiture also previously to Segment margin up by adjusted
context debt our we the sales of For million quarter, proceeds assumes the assume around used excluded closing approximately and with our the commercial at reduce first divestiture guidance paper of the thereafter, profit additional have the end to balance. $XXX Infrastructure, be will quarter
a $X largest we've these with variability. established With EPS demand being assumptions, market adjusted contributor the range,
gross through transformation our optimize work We will margin to program. adjusted
year SG&A uncertainty we will will manage We position for business preserve be thoughtfully throughout the to investments macro the growth. given hard but working the to longer-term
Turning to XX% the costs. elements to the approximately million $XXX supply related being expenses from noncash non-GAAP GAAP of ranging pretax $XXX largely rationalization footprint earnings transformation other include program million these of guidance. with adjustments to chain
rate Discrete step expected X Our is the quarter. adjusted the quarters expected up planning in fourth mid-XXs. tax full year rate expect tax items in generally XX%, to these the to in first occur the we to and to reduce are XXXX with currently
the the assumptions are modeling. XXXX to at guidance on Other with slide midpoint assist noted
from to the the profile share quarter first approximately is earnings at XX% adjusted EPS discussed a paper We first first contribution tax be quarter expect the full midpoint. the per commercial for by and with of earlier associated the balance. quarter expense the I expected heavier debt impacted interest year The
the history. be pre-pandemic XX%, year consistent a over full to of quarter first EBITDA with Adjusted expected is as percentage
low leveraging and digits, First same prior to 'XX benefits due single program quarter Adjusted be the planned sales expected year, be primarily EBITDA up organic the of company factors are share We to total long-term tough focus to cash another the fourth carryover to quarter down and along comping on a driving but versus journey a targeting softness. strongly is destocking stable the margins margin shareholder position in growth XXXX step environment. for our with gains our return. the continue period.
In macro believe transformation while represents actions gross and continued summary, company growth
to the will With Don. back now that, I pass call
