Dana Incorporated (DAN) Earnings Call Transcript & Summary

Good afternoon, everybody, and thank you for joining us for this session with Dana as part of Deutsche Bank's Global Automotive Conference. My name is Emmanuel Rosner, and I'm the Senior U.S. Auto Analyst at Deutsche Bank. Dana is a leading supplier of axles and driveshaft with diversified exposure across light vehicle, commercial vehicle and off-highway end markets. We are very pleased to host with us this afternoon Dana's CEO, Jim Kamsickas; CFO, Jonathan Collins; and Head of Investor Relations, Craig Barber, for discussion. The format for this session will be a relatively short presentation by Dana with some slides that should hopefully be visible in your webcast window. Then we will turn to Q&A using some of my prepared questions as well as questions from all of you on the call. To submit a question, please type it in the box on the left side of the webcast window. I highly encourage you to do so and get involved in this discussion. Only I will see your questions, and I will ask them on this call as part of discussion without mentioning your names or affiliation. So with that, Jim, thanks a lot for being with us, and over to you.

Okay. Thank you very much, Emmanuel, and thank you for having us in the Deutsche Bank Conference this year as we're typically attendees. In the spirit of time, if I can ask the audience to move to Page 3, which is titled as the business overview. It's just simply a courtesy, especially for those of you that may not be as familiar with Dana. I'll keep it quick, but I'll give you a bit of a framework. We're definitely unique from a typical, I would call it, automotive-only light vehicle supplier and that, as you can see on the left-hand side of the page, we have a very good balance between the light vehicle market, which is 52% and from that standpoint, we are largely only in the trucks and SUV and larger platforms, the heavy vehicle or some refer to as commercial vehicle. And then on the bottom left, of course, is off-highway, which would be mining, material handling, construction, agriculture and those type of products. The key here is that in terms of evolving the business, you can see if you take light vehicle at 52% and the 2 other segments at a combined 48%, we -- that is not by accident that we have a balance of essentially 50-50 between light vehicle and heavy vehicles. Segment reporting. As you can see, I won't go through it in great detail. That's how we would report from our 4 different segments. Regions, pretty good breakup, obviously very clear and understandable, especially being an American-based headquartered company and where our products are more suitable. And then technologies, we refer them to drive motion, electrodynamic, thermal sealing and digital products. The only one I would accentuate before we turn to the next page is the electrodynamic, our capabilities and products. Historically, Dana, 116-year-old, we like to believe iconic American manufacturing company gives us some great pride. But the long and short of it is, is that we're often considered mechanical. But the truth be told via both organic and inorganic activities over the last 3 to 4 years, we have full capability. And when I mean full capability, I mean the actual design, engineering and manufacturing of motors, inverters, controls and software, chargers, electrified power cradles, battery management systems and fuel cell plates for hydrogen vehicles and others. So just thought you might find that of interest before we turn to the next page. Moving on to the next page. I think it's Page 4 here in the deck as well. The short and sweet, this is a consistent page that we'll probably move away from after this update, but it's what we refer to as our pandemic response priorities page. If you follow the top 2 on the shield, first employees and second being communities, if you're [ more focused ] on the employee, you [ shouldn't ] be in the business, maybe even on the earth. But the long and short of it, we've institutionalized many, many safety protocols and focused on our people. Either good luck or bad luck, call it what you want, but we have a -- as many of you are aware, we have a very strong presence in Italy, not to mention many other countries. But as the pandemic found its way out of China, across over into Europe, especially in Italy, we moved quite fast. We deployed -- we essentially wrote many of the playbooks that are out there today, especially for our own facilities as it relates to safety protocols and execution. We cascaded that around the company, and it's what we're working with today. Fortunately, knock on wood, we continue to have relatively good success because of a lot of effort, focus and discipline on our -- by our team members. In the upper right is communities. At the end of the day, I would be hard-pressed to find in any of the 37 countries that we participate that we're not doing community outreach to help people in need through these times. So it's part of what all of us should be -- [ might be labeling should be what we're about ]. Moving to the bottom left, probably more about this call than anything else as it relates to the shield would be today's activities. Protecting our customers is mission-critical, simplifying that down to ensure that they're able to turn their assembly operations on and they're provided the products and services that they pay for and they deserve. And then on the bottom right-hand corner, certainly, not last but least, is our future and our future obviously entails many things. But it starts with having the right people and the right products to ensure that we're creating value for our customers and other stakeholders in the future. I ask you to turn to Page 5. As we all know, the mobility markets have seen a great deal of instability in the first half of the year. This slide is an overview that we shared on the first quarter earnings. It's been updated for the current status. As we expected and communicated at the end of the first quarter, most of our customers outside of China idled some or all production in the month of April, and we're expecting to begin restart in May. In the last several weeks, we started our operations to ramp back up in line with our customer restart plans, most notably in the light vehicle market here in North America. Going into May, there was an uncertainty as to how fast the customers would be able to restart and when their Mexican supply operations would be permitted to restart as well. In the end, the May ramp-up was slightly slower than expected. However, we're seeing accelerating customer releases for June and in the second half as they look to replenish low dealer inventories. Customers have indicated that they will, in some cases, take limited summer downtime. A few of our European customers have remained operating with limited production and others are planning to restart on a country-by-country basis. In China, production is restarted and demand for light vehicles is certainly recovering. Moving on to the center of the page, our commercial vehicle customers in North America began idling production in April, and then restarted in May, early May. However, we're seeing slightly lower market demand for Class 8 trucks than initially expected due to lower freight miles being driven. In China, commercial truck and the bus production has restarted, benefiting our nonconsolidated Dongfeng Dana Axle Company joint venture. In our Off-Highway operations, customer production in North America has been mixed, with operations supporting essential industries such as agriculture, mining, industrial sectors have remained in production. In Europe, Italy and many of our customers across the region began to resume operations in late April. However, we're seeing muted end market demand for construction vehicles. In China, production is running at near capacity. Across all our end markets in India and South America, operations had been idle or greatly reduced through May, but we've seen customers restarting operations in the past few weeks. And we're ramping up to support the rising demand in these regions. Through this all, our supply base has been stable, and we continue to monitor suppliers to ensure an uninterrupted supply. As of now, we expect only minimal delays to new programs in the forward-looking launch cycle. With that, I'll hand the keys of the car over to Jonathan Collins.

Thank you, Jim. Good afternoon, everyone. Just a couple of comments about the strength of our balance sheet on Page 6 of the presentation. As a reminder, first, we started the second quarter, which has been challenging, as Jim mentioned, due to downtime and most of our customers associated with the pandemic response. But we started the second quarter with a strong balance sheet. Our leverage levels on a net basis were approximately 2 turns. And we had more than 9x our annual interest cost covered with our core profit adjusted EBITDA. The second point I'd highlight is that in order to be prudent and careful during this period, at the end of the first quarter, we shifted our liquidity mix from more -- to more cash on hand. We typically carry about 1/3 of our liquidity in cash and 2/3 in our available borrowings under our cash flow revolver. We shifted that about to a 50-50 mix at the end of the first quarter, and we would expect to continue that for the next couple of quarters as we work through these issues. The third point I wanted to highlight is our debt maturity profile. So our refinancing risk is very low. We have no major debt maturities for the next few years, which puts us in a very strong position as we navigate through these challenging times. With that, I draw your attention to Page 7. Just a couple of thoughts on the full year as well as a little bit of color on what we've seen in the second quarter since we were out in late April. I'd just highlight that due to the uncertainty in our end markets, it's abnormally high, as everyone is aware, we do not have full year guidance out there. What we chose to do is provide a sense of how all of our cash flow items will move with lower volumes. And we highlighted that at a sales decline on a full year basis of about 30%, we believe that our adjusted free cash flow would be approximately breakeven, and we gave what that would be relative to profit and all of the other cash flow items. I highlight that, in principle, the profit and the source of cash we would get from working capital at the sales level would be able to offset onetime costs we incur, interest taxes as well as a much lower capital expenditure level. Just a little bit of color on the second quarter. At the end of April on our Q1 earnings release, we gave some color. Now that we're further through that, we have April and May sales results. April ended up being down about 75% versus prior year. May was down about 55%. And the May production ramp-up was just a little bit slower than we expected. As Jim mentioned, June is pretty much looking to be in line with our expectations. But based on that, we would expect Q2 sales are going to be around $1 billion. We would expect that our adjusted EBITDA will be just slight of breakeven. And then just to provide some additional color on free cash flow as we navigate this and work to manage our working capital, we would expect a use of free cash flow in the quarter that would be just slightly higher than what we saw in the first quarter. But we still believe on the balance of the year based on the scenario that we provide here, ample opportunity to generate cash from working capital in the second half of the year. And we'd be in a position even at this significant level of sales decline on a full year basis to have strong liquidity at the end of the year. Just a few final comments on Page 8, entitled near-term financial priorities, where we, the leadership team at Dana, our laser focus is on 2 key aspects: first, we're focused very heavily on conserving cash and second on maximizing our liquidity to ensure that we're in a position to navigate through this successfully. From a cash conservation priority standpoint, one of the areas we're laser-focused on [Audio Gap] our material orders and our inventory remains in line, and we don't have too much cash that's caught up in inventory. We very aggressively flexed our conversion costs and taken a number of actions that we talked about in detail just about a month ago. We continue those through the second quarter. We drastically pulled back on our capital spending, as you saw from the breakeven analysis on the prior page. With a significantly lower sales level, we'd expect to be able to reduce our capital expenditures by about $150 million compared with the prior year. We're already on that spending trajectory after the first quarter. We spent just over $60 million in the first quarter. And then finally, we've taken the prudent action of suspending our dividend to preserve cash. On the right-hand side of the page. From a liquidity standpoint, in addition to the $1.3 billion of liquidity that I highlighted on Page 6, we put a bridge facility in place in the second quarter, which added $0.5 billion of liquidity. So on a pro forma basis, our liquidity as of the end of March would have been over $1.8 billion. So we're in a very strong position to navigate through these challenging times and remain very focused on making sure that we are flexing all of our costs and all of our cash outflows to match up with this lower level demand associated with the pandemic response. That's all we had in our prepared remarks. I'll turn it back over to Emmanuel to take everyone's questions.

Great. Thank you so much you both for this very detailed overview of the current situation. Just starting with a couple of follow-ups on the presentation and the slides themselves. So you were saying May ramp up slightly slower than expected. Was that mostly a light vehicle comment?

Yes, Emmanuel, this is Jim. I guess the way we would picture it would be this. If you remember, we're back to being a little bit unique. I'm going to get back to light vehicle. When we say that, it's more in general, there is a new set of words that everybody unfortunately had to get familiar with, was essential business or essential operations. We thought about -- when you think about it, the different pockets of where we have that, not only did you have countries on different start-up cadences and approvals, but you had either providences or states within country that would put us in a position stuff. So it just made some things a little bit challenging for our customers and, of course, for us as well, depending on which market, if that was agriculture and Off-Highway or commercial vehicle, whatever. Back to your comment on light vehicle. I mean I would say it doesn't surprise me and probably doesn't surprise many of you, very sophisticated operators, they came up, did a really good job, but it didn't mean it was perfect. I mean certainly, everybody was putting in their safety protocols. Everybody was trying to overcommunicate with their associates, stopping their lines to talk to people, all the things looking for the next best practice to put in place. And so there was a little bit of that, particularly in the first week. But I would say now, everybody is off and running really, really strong. And back to your specific question on light vehicle, and we're right there with them.

Great. And then I guess second point of follow-up. It looks like the -- maybe the second quarter free cash flow outlook is maybe a little bit of a bigger negative revision than the EBITDA. Is it mostly due to net working capital?

Yes. I would say there's really no significant change or outlook there. We're providing a little bit more color here at the end of April. We just indicated that it was -- we were going to be a use of cash in the second quarter. So we just gave a little more color on that. And a piece of that is the working capital. The opportunity in working capital is more going to come in the second half of the year. So for example, on customer inventories, when you really know -- our inventories, when our customers are producing and we're not shipping, it's challenging to drive inventories down, but that is underway. That's going to be happening in June, July, August and through September. So we're just trying to get a little -- provide a little more color there than we did when we were together last year.

Okay. Great. And then maybe just finally in terms of follow-up on the slide. So you're indicating that the new customer programs are seeing minimal delays. So should we understand that as the delay is roughly equal to the shutdown time? So you mean it's still on the original timing and you were able to back up from some lost time? Like what exactly are we talking about?

Yes. That's a good way of saying it on a broad brush across our launches and new platforms across end markets. You can, largely speaking, correlate it to, we believe it was [indiscernible] and we recognize it is an 8- to 10-week downtime there would be on average [ to be, that's a ] delay. But the important point to make is, at least in our business, we haven't seen any programs that I can think of anyway that if the people have made or their OEMs have made decisions to not continue with. So we're still on schedule, just that that's much small blip in time because, frankly, they couldn't validate vehicles or we couldn't validate components or other suppliers couldn't. So that's the only reason.

Okay. And therefore, how should we think about the backlog contribution for this year, is $350 million? I assume it needs to be adjusted down for maybe a lower end market volume environment and then going ahead as well in terms of your 3 year. Is it sort of like just a matter of adjusting down for lower volume?

Yes. For all intents and purposes, Emmanuel, I think that's correct. So we would say, depending on what the full year volume change is compared to prior year, the backlog will be affected by a comparable amount. And then obviously, as we get later into this year and have better line of sight into production levels for next year and see how the recovery coming out of the pandemic response plays out, we'll be in a better position to give some color on 2021.

Okay. Great. Switching maybe to the margins. You posted impressive decremental margins in the first quarter. Organic sales were about 21%. You guided, I think, to mid-20s decremental for 2020, at least in your breakeven scenario. What cost actions does this require? And where do you stand in implementing them?

Sure. Maybe I can just give a little color on some of the things that would be standard. We would typically flex our hourly labor cost in line to [ meet ] production. So we're very well prepared to manage demand for hourly associates at that level. We would also look to flex our overhead expenses in all of our manufacturing locations as well as outside of those. But due to the extraordinary reduction in demand in the second quarter, we took a number of actions that would be less normal but are going to have a significant impact. So we extended reductions in our labor cost to our salary workforce. So we instituted pay reductions virtually around the globe. We also went to reduced workweeks. We're using forms of temporary layoff in certain regions. So we're meaningfully flexing our salary costs, which is typically a more fixed item. The other areas I would point to that go beyond just the P&L, but certainly, the focus that we have on capital expenditures, while it's not directly margin related to something else that is a major area of focus for us during these times. So we've been spending a significant amount of CapEx. We outspend our depreciation expense last year by about $100 million to help drive growth and position ourselves for success in electrification. There are a number of those initiatives that are more discretionary. So we're pulling back on some of those. We're delaying and deferring some other things that we're pursuing in order to put ourselves in a position to preserve cash flow. So really, I would say those are things that we're doing that are extraordinary measures that are helping us to manage our decrementals and also help us to preserve cash flow on a much lower volume level.

And I guess, so what does that mean as we come out of this year, assuming volumes sort of like stabilized, but that's maybe a lower level than the recent peak. How should we think about your ongoing incremental margin on volume recovery? And maybe also, how to think about normalized margin profile for each of your segment?

Sure. I think there's going to be some symmetry on the way up and on the way down. So we indicated that we're probably going to be in the mid-20s, and I would expect that as we start to come back up, you're going to see incrementals that are comparable. But we're certainly not going to let the situation pass us by without taking the opportunity. We'll take a very hard look at our cost structure and identify opportunities. We have to turn some of these permanent reductions -- or temporary reductions into more permanent. So there could be some upside for us. But we're also going to remain focused on the future of the business. As Jim highlighted in his comments at the beginning, we will continue to make investments in new product technology to help our customers as they move from internal combustion engines to electrified vehicles. So broadly speaking, I would suggest that there's probably going to be some symmetry in the incrementals and the decrementals.

Okay. And then maybe just finally on the cost side. How much of a tailwind would you expect lower commodity prices to be? I mean originally was supposed to be a pretty meaningful driver. I assume that things have at least continue in that direction.

Yes. It's a very fair point. We've not quantified that yet. And as we -- or we've not publicly quantified it. But as we move into -- through the second quarter and we move towards Q2 earnings, we may be in a better position to give some color there. But I believe that commodity costs have -- for the most part in our categories, have continued to come down. As a reminder, that will reduce our sales, but it will reduce our costs even more. And it will help to expand our margins. So passing those cost reductions back to our customers, while we reduce our top line, it does help to expand our margins and keep the decrementals a bit lower. So it's a fair point. It's something that's moving in the right direction for us.

Great. Maybe shifting to free cash flow and capital allocation. Actually, a lot of the questions from investors coming through seem to be focused on those, but I guess, first, you exited Q1 with about $1.8 billion in total liquidity. What sort of levers -- I mean you spoke about some of the cost action, but what sort of levers are you pulling to minimize the near-term cash burn? And any way to quantify what sort of like temporary was potential to reverse in the coming months?

Sure. So I mean the things that I would point to are very effective flexing of our conversion costs that we highlighted when we talked about through the P&L. Beyond that, we start thinking about what else affects cash flow. It's really working capital management. So we have very strong customers. They pay their bills on time, and we'll continue to do the same with our suppliers. So the opportunity for us is to really drive down our inventory. So very thoughtful about the material that we're bringing in, make sure it's well matched with what is going to need to be consumed in the coming months. So managing our inventories is very important, not just in the second quarter, but as we move forward into the second half of the year and volumes are likely to be lower than where they were last year. We'll be very careful to make sure that we're bringing in the right amount of material, and that's the most important aspect of working capital for us to manage, and we're very focused on preserving cash to working capital. We'll also be very thoughtful and careful about the investments we make in onetime costs. Certainly, we indicated with lower level of demand as we look to make some of these cost reductions more permanent, we may spend a little bit more there, but we'll be very judicious with that. And then really on the capital expenditures, I highlighted that in the prepared remarks at the beginning, really bringing that CapEx down significantly compared to the prior year and doing so in a very thoughtful manner.

Yes, that's very helpful. So let me read a few of the question, I guess, on your debt structure coming in from investor. First, what's the goal for that 1-year $500 million bridge facility? It looks like your liquidity is adequate without it. Would you look to make that permanent at some point?

The bridge was there, and it was put in place a couple of months ago out of an abundance of caution. And just having some extra dry powder we thought was prudent. And we will continue to look at market conditions. And if they continue to improve on a pretty stable trajectory, we won't need to carry this elevated level of liquidity on a permanent basis. So there are a bunch of different ways to handle that. But in principle, at some point in the next 9 to 10 months, the bridge will fall away. And it will just be a question of how the market continues to perform, how sales ramp back up. But there's certainly not intended that we would need to use it, but was there just as an additional security measure.

Okay. And then another question. How are you considering potentially refinancing the revolver? Would you consider a potential equity issuance the way similar to what Active did yesterday?

Yes. So by going back to a more normal liquidity mix, we would just take cash on hand and pay back our revolver. So I don't see an absolute need to borrow more money to do that as we move through the balance of this year. Our revolver is going to be in place for another 4 years. So I don't think there's going to be anything imminent there to be able to pay that back. And we'll continue to look at all opportunities to improve the capital structure, but our plan has been to continue to generate cash flow in the business and delever the term debt that we have on the balance sheet and continue to improve the strength of our balance sheet. And as we work through these challenging times and get to a more normal level, get back to higher generation of cash flow, that's likely how we'll be thinking about managing our capital structure.

Great. And then maybe last one on this topic from the investor question list. Can you talk about your future capital allocation framework? What it may be in terms of priority and timing, both for leverage, share repurchase, dividends and growth?

Sure. So we've been pretty clear that about $1 billion of net leverage -- or excuse me, of net debt is our target. We generated about $1 billion of profit last year. So that turns into about internal leverage. That's where we would like to get to over the course of the next couple of years. So that's the first place that we're going to take the cash flow we generate is to pay down term debt that we put in place over the course of the last few years to fund some of the acquisitions we made to improve our competitive position. So I would say that's a focus for us. In terms of repatriating cash to shareholders in the form of the dividend, that was a function of some of the measures we took to just make sure that we're in a very strong position over the next few quarters. So as market conditions continue to improve, we'll look at the rate of recovery and reevaluate that certainly in the second half of the year.

Great. Maybe turning a little bit to your efforts on the electrification at your Analyst Day last year, you had targeted electrified vehicle sales going from 1% to 5% of mix by 2023. Does this framework still hold? Are things progressing as well or faster than expected?

Yes. From our perspective, that continues to remain on track. And we highlighted within the last 6 months, I can't remember this, early this year or late last year, that the significant full powertrain that we were awarded here in North America on the medium-duty segment of the market goes a long way to helping us achieve that objective in 2023. We continue to have electrification wins come in. We highlighted that electrification now made up a more significant portion of our backlog that we introduced earlier this year. So I would say, based on what we see today and our customers' continued focus on shifting to electrified vehicles and how we are and the success we're having commercially, we think we're on track for that in just a few years.

And at the same time, there appears to be much more proactive or aggressive efforts by automakers for battery electric vehicle pickups to launch in actually relatively near future with efforts by GM for Tesla Cybertruck. Are you bidding for content on these programs? Is there any of that in the 15% EV backlog that you have disclosed?

Yes, I can take the backlog piece, and then Jim will provide some commentary on the pickup electrification market. So from a backlog perspective, the 15% we had was largely in our heavier vehicle markets. So there were no major programs that we highlighted from an electrified light vehicle perspective. We've been pretty clear that the markets that are moving earlier are medium-duty within commercial vehicle. We're seeing movements in mining, and those are some of the areas where we're picking up some early wins.

Yes. And that's more specific to the light vehicle. We've been 116-year-old company, largely in the truck business and light vehicle forever. We're in certainly dialogue and communication, creating solutions for their customers and all of the either ICE or electrified propulsion activities that are going on. It's like Jonathan said a minute ago, the pull-through is a little bit behind some of the others. What Jonathan didn't mention was like the bus business was really the first mover for us and just have an added starter that's outside of the light vehicle answer. But even as well as with our acquisitions of Oerlikon and others, if you think about, like, I don't know, your Home Depot or Lowe's and aerial work platforms and teleboom handlers and that stuff, a lot of those are electrified. We're actually capitalizing and having the synergies of the same design and engineering work we're doing for light vehicles and others to be able to cascade that into those markets. So I hope that answers your question.

Yes, for sure. So I guess on the commercial truck side then, are you seeing actively more appetite for fleets to go electric? And since it's pretty topical also in light of one of our presenters later today, what's your view on battery versus fuel cell technology?

Yes. I can just touch on the segments that we're seeing more success on early. And in principle, as I mentioned, a lot of activity around the medium-duty segment. So we've made a lot of investments for, think of, urban delivery or last-mile transportation. The duty cycles for those electrified vehicles make a lot of sense economically and also align with a lot of no emission zones that are coming into play in Europe as well as some of the pressures that we're seeing in North America as well, too. So I would say that's a category where we've made early investments. We see greater opportunity for higher volumes in the near term. That's where we've seen a big piece of our commercial success within the heavy truck -- or excuse me, the commercial vehicle segment.

Yes. I would only add to it that it's not by accident. I believe our customers are choosing Dana because they recognize the institutional knowledge and expertise that comes with actually manufacturing the components and products, i.e., like I mentioned earlier in the opening, motors, inverters, chargers, and of course, the software and everything else associated with it. So it puts us in a really strong position to be able to create value, and that's what we're doing.

Beautiful. I guess maybe in the last couple of minutes that we have wanted to go through a few of additional investor questions. So maybe -- can you provide us with more detail on the financial health of your supply chain? And could that lead to any impediments on either your purchasing savings or working capital optimization?

Yes. I'll take it, Jonathan may add some color. But I would say this, one thing I'm very proud of our purchasing organization, about 4, 5 years ago, we really got disciplined in that, doing kind of having some outreach, making sure that we have the right systems in place to make sure we had a good understanding of the financial help not only of our direct Tier 1s, but Tier 2s and 3s and so on and so forth. And to this point, we've done very, very well. I was quite concerned coming into pandemic that we have an issue right about now, when they came back up to, what I look to call with water back in the pipe. But largely speaking, the health of our supply base has been pretty good. And our -- lot of the efforts for us to have multiple suppliers, perhaps for the same products has been very effective for us. So no major issue, I would say, in that front. Jonathan, anything else to add?

It's great.

Great. Maybe final one as we're at the end of our allotted time. So when you first disclosed the slide regarding the breakeven free cash flow, you indicated you would expect to do better than that. Is that still the case based upon May, which was a little under expectations, but June, which sounds like it's going as planned?

Yes. No change in the breakeven analysis on a full year basis. So I think our indication there was -- all we were trying to say is if the markets are down 30% and sales are only $6 billion based on all the cash conservation that we can put into place, we still think we could get to about breakeven. Nothing has changed there. In the second quarter, we see as a timing issue. We wanted to provide a little bit of color on the second quarter. But all we had available is our customers' releases and their operating plans. And those changed a little bit, but based on some of the commentary that Jim provided on the end market, we don't think any of the slight differences what we saw in May will have a meaningful impact on a full year basis.

Awesome. Well, that's really very interesting. So Jim and Jonathan, I really want to thank you for being with us for all the insights today for the update on your operations and on the company. I want to thank all the investors for participating, for submitting so many good questions. Stay with us. We have Goodyear next on track 1, Linamar on track 2. We really appreciate all your participation and support. Thank you very much, Dana team.

Thank you.