CLAIM #20032 · DE (DE) · 2024Q2 earnings call · May 16, 2024 · due Dec 31, 2024
“We're definitely taking cost steps. Our focus on taking material and freight out of the business continues, and we expect that to build in the back half.”
Josh Beal · Director of IR
In context
“yering into the back half of the year that's offsetting that under production. Josh Beal: Thanks Kristen. I'll start, and jump in as well here. I think a few things. I mean, certainly, I think as you think about 2024 and particularly underproduction, primarily shifted towards the back half of the year, we have had some adjustments in rates and things. And we've talked about that in terms of some of the overhead and efficiencies that have come into the business as we made those changes. You're seeing that in production cost. That's a headwind there that's offsetting the tailwinds that we see in material and freight, excuse me. So that is having an impact on some of the changes. And certainly, that underproduction plays a part in terms of what we're seeing there as far as decrementals. We're definitely taking cost steps. Our focus on taking material and freight out of the business continues, and we expect that to build in the back half. That is helping offset some of the decrementals as we pull down production in the latter part of the year. Josh Jepsen: Kristen, it's Jepsen. I would say definitely, we see the bigger impact in 4Q as seasonally -- you see a higher level of retail, but then also we get seasonal shutdowns and those sorts of things. As we work through the back half of the year, we're resetting production rates, as Josh mentioned. We're also getting the cost structure aligned. So that will benefit us as we go forward. So the way we're exiting '24, I would say, is not indicative of what we would expect '25 to look like as we step into that year regardless of where we see the end marks moving. Cory Reed: One thing I would add, I mean, one of the additional points I'd make is we're actually preparing for pro”
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SEC filings for DE ↗ · Claim quote is verbatim from the 2024Q2 earnings call.