Sensata Technologies Holding NV (NYSE:ST) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 08:00 am ET


Sensata Technologies Holding NV (NYSE:ST) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Sensata Technologies Second Quarter 2020 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Mr. Jacob Sayer, Vice President of Finance. Please go ahead.

Jacob Sayer

Thank you, Constantinos, and good morning, everyone. I'd like to welcome you to Sensata's Second Quarter 2020 Earnings Conference Call. Joining me on today's call are Jeff Cote, Sensata's CEO and President; and Paul Vasington, Sensata's Chief Financial Officer. In addition to the financial results, press release that we issued earlier today, we will be referencing a slide presentation during today's conference call. A PDF of this presentation can be downloaded from Sensata's Investor Relations website. We'll post a replay of today's webcast shortly after the conclusion of today's call.

As we begin, I would like to reference Sensata's safe harbor statement on Slide 2. During the course of this conference call, we'll make forward-looking statements regarding future events or the financial performance of the company that involve certain risks and uncertainties. The company's actual results may differ materially from the projections described in such statements. Factors that might cause such differences include, but are not limited to, those discussed in our Forms 10-Q and 10-K as well as other subsequent filings with the SEC.

On Slide 3, we show Sensata's GAAP results for the second quarter of 2020. We encourage you to review our GAAP financial statements in addition to today's presentation. Most of the subsequent information that we will discuss during today's call will relate to our non-GAAP financial measures. Reconciliations of our GAAP to non-GAAP financial measures are included in our earnings release and in our presentation material, the company provides details of its segment operating income on Slides 10 and 11 of the presentation, which are the primary measures management uses to evaluate the business.

Jeff will begin with a review of our overall business during the second quarter, including the impact from COVID-19 and the strong financial position of the company. He will also discuss Sensata's revenue growth relative to our end markets during the second quarter and first half of 2020. He will then provide an update on recent progress in some of our key megatrend growth areas, including the recent acquisition of PRECO Electronics. Paul will then cover our detailed financials for the second quarter, provide a description of changes in our financial model and liquidity position, provide insight into what we are expecting for our end markets for the balance of the year and then provide select financial guidance for the third quarter of 2020. We will then take your questions after our prepared remarks.

Now I'd like to turn the call over to Sensata's CEO and President, Jeff Cote.

Jeffrey Cote

Thank you, Jacob, and welcome, everyone. I'd like to start with some summary thoughts on our performance as outlined on Slide 4. Sensata recognized the global impact of COVID-19 early, and we took a wide range of actions designed to protect our employees and enable us to meet