Gates Industrial Corporation plc (NYSE:GTES) Q3 2019 Earnings Conference Call - Final Transcript
Nov 05, 2019 • 05:00 pm ET
Ladies and gentlemen thank you for standing by and welcome to the Gates Industrial Corporation Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to hand the conference over to your speaker today Bill Waelke. Thank you. Please go ahead sir.
Thanks Erin and thanks everyone for joining us today on our third quarter 2019 earnings call. I'll briefly cover our non-GAAP and forward-looking language before passing the call over to Ivo who will be followed by our CFO David Naemura. After the market closed this afternoon we published our third quarter results. A copy of the release is available on our website at investors.gates.com. Today's call is being webcast and is accompanied by a slide presentation. On this call we will refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliations of historical non-GAAP financial measures are included in our earnings release and the slide presentation each of which is available in the Investor Relations section of our website. Please refer now to slide two of the presentation which provides a reminder that our remarks and answers will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to be materially different from those expressed in or implied by such forward-looking statements. These risks include among others matters that we have described in our most recent annual report on Form 10-K and in other filings we make with the SEC.
We disclaim any obligation to update these forward-looking statements which may not be updated until our next quarterly earnings call if at all. Ivo?
Thank you Bill. Good afternoon everyone and thank you for joining us today. The results for the third quarter came in aligned with our expectations. In Q3 we remain focused on reducing our variable cost structure driving down the levels of our inventory. And last month we announced the first impacted facility that is part of our fixed cost restructuring program. We are quite pleased with the progress we've made in Q3. And while a significant amount of work is ahead of us we believe that we will be better positioned heading into 2020. That being set of business based industrial and markets that remained under pressure and decelerated as quarter progress in line with what we had anticipated our automotive and market however, so signs of stabilization in q3. Our automotive first-fit business improved sequentially from Q2 as did our automotive replacement business which saw a normalization of the destocking we experienced in the first half of the year and overall improved business conditions. Jumping right into slide three of our presentation material. Our revenue in the quarter declined 8.5% on a core basis compared to the prior period -- prior year period.
Our industrial and market continues to be impacted by additional channel inventory distracting and reduce demand, particularly in a mobile hydraulics market. This is consistent with a treat