Cost ManagementWith an incremental ~$10M of cost savings to be realized and continued gross margin improvement expected, the company remains well positioned to capitalize on the eventual demand recovery.
Financial PerformanceThe company’s improved production footprint not only offset pressure from unfavorable product mix and lower fixed cost absorption but resulted in a ~80bps expansion of gross margin.
Future ProspectsThere are signs the worst is behind the Company, and should macro relief come as self-help initiatives take full hold, there could be material upside to numbers and valuation for this business.