Garrett Motion (NYSE: GTX) reported Q1 EPS of $0.92, $0.71 better than the analyst estimate of $0.21. Revenue for the quarter came in at $745 million versus the consensus estimate of $664.04 million.

First Quarter 2020 Highlights

• Net sales totaled $745 million, a decrease of 10.8% on a reported basis and 8.5% at constant currency*
• Net income totaled $52 million, or $0.69 per basic share and $0.68 per diluted share
• Adjusted net income* was $68 million, or $0.91 per basic share and $0.89 per diluted share
• Adjusted EBITDA* decreased to $108 million; Adjusted EBITDA margin* was 14.5%
• Adjusted free cash flow* totaled $57 million; Adjusted free cash flow conversion* of 84%
• Net debt to consolidated EBITDA ratio* was 3.01x at March 31, 2020

“Our financial results for the first quarter demonstrate Garrett’s flexible operating platform and global capabilities amid the novel coronavirus outbreak,” said Olivier Rabiller, Garrett President and CEO. “Both of our production facilities in China have restarted operations and returned rapidly to full capacity after closing for a portion of the quarter due to the COVID-19 pandemic. We remain focused on taking aggressive measures in response to this unprecedented crisis with a priority on protecting the health and well-being of our employees and meeting our customer commitments. Last month, we fully drew down on our revolving credit facility to increase our financial flexibility and started the current quarter with $658 million in total liquidity. We are also temporarily reducing pay for Garrett’s senior leadership team by 20% and postponing future capital expenditures without impacting near-term programs. By actively managing our cost structure and preserving capital, we expect to generate significant cash savings for the year, and we are evaluating further steps to ensure the continuity of our operations. Garrett’s positive business fundamentals remain intact and we will continue to calibrate production schedules in the near term and flex our cost structure to maintain our agility and strengthen our position for long-term success.”

For earnings history and earnings-related data on Garrett Motion (GTX) click here.