Methode Electronics, Inc. (NYSE:MEI) Q4 2022 Earnings Conference Call June 23, 2022 11:00 AM ET

Company Participants

Robert Cherry - VP, IR

Don Duda - President and CEO

Ron Tsoumas - CFO

Conference Call Participants

Luke Junk - Baird

John Franzreb - Sidoti

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Methode Electronics Fourth Quarter Fiscal 2022 Results At this time, all participants are in a listen-only mode. After management’s prepared remarks, there will be a question-and-answer session.

I would now like to turn the call over to the host, Vice President of Investor Relations, Robert Cherry. Sir, please go ahead.

Robert Cherry

Thank you, operator. Good morning, and welcome to Methode Electronics fiscal 2022 fourth quarter earnings conference call. For this call, we have prepared a presentation entitled Fiscal 2022 third quarter financial results, which can be viewed on the webcast or found at methode.com on the Investors page.

This conference call contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the safe harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statements to conform the statement to actual results or changes in Methode's expectations on a quarterly basis or otherwise.

The forward-looking statements in this conference call involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our 10-K and 10-Q reports.

At this time, I'd like to turn the call over to Mr. Don Duda, President and Chief Executive Officer.

Don Duda

Thank you, Rob, and good morning, everyone. Thank you for joining us for our fiscal 2022 fourth quarter earnings conference call. I'm joined today by Ron Tsoumas, our Chief Financial Officer. Both Ron and I will have opening comments, and then we will take your questions.

Let’s begin with the highlights on Slide 4. Our sales for the quarter were $289 million, upping our sales by $7 million with successful spot buy in premium freight cost recovery efforts. However, our Automotive segment encountered demand headwinds in North America and Europe due to program roll offs and the ongoing global supply chain disruptions.

Also in Europe, the extent of the weakness in the auto market, due to the conflict in Ukraine was worse than expected. Also unexpected where the COVID-19 lockdowns in China, which led to weaker than forecasted sales in Asia. While the overall sales for the quarter were in our expected range, sales could have been better reducing the effects of other headwinds.