Kosta Tasoulis

Kosta Tasoulis from Wells Fargo asked for an update on Sensata's 2-4% organic growth guidance for the next 12-18 months, specifically how the challenged HVR/housing market impacts this outlook, given previous expectations for non-light vehicle business support.

Answer

Andrew Lynch, Sensata Technologies' Chief Financial Officer, acknowledged a slowdown in non-auto businesses like HVOR, impacting organic growth this year. He noted that despite a cautious Q4 guide, turning a corner in China's outgrowth and continued strong outgrowth in other segments provide high confidence in achieving low single-digit organic growth moving forward if end markets hold up.

Kosta Tasoulis questioned the company's 2-4% organic growth guidance for the next 12-18 months, specifically how challenges in the non-light vehicle business (HVOR, housing) impact this outlook.

Answer

Andrew Lynch, Sensata Technologies' Chief Financial Officer, acknowledged a slowdown in non-auto businesses like HVOR and North American on-road trucks, which has impacted organic growth this year. He noted that the company is on track for approximately 1% organic growth in Q4 and expressed high confidence in achieving low single-digit organic growth moving forward, contingent on stable end markets and continued outgrowth in China.

Kosta Tasoulis asked newly appointed CFO Andrew Lynch about his key priorities and inquired how cost optimization efforts, such as component standardization, would impact inventory levels and working capital.

Answer

CFO Andrew Lynch stated his primary focus is enabling the CEO's transformation pillars, particularly through better analytics and rigor in capital allocation. He and CEO Stephan von Schuckmann explained that inventory reduction will be driven by both unit cost reduction and carrying less inventory through better demand planning and benchmarking.