Financial Data and Key Metrics Changes - Revenue totaled $4.8 billion, down 1% year-over-year due to lower vehicle production in North America and Europe and negative customer mix [5][20] - Operating income reached a record $572 million, an increase of over 5%, reflecting strong operating execution and ongoing cost reduction initiatives [5][20] - Earnings per share hit a record of $1.69, a 46% increase from the prior year, driven by higher operating income and share count reductions [5][21] - Operating cash flow totaled $273 million, positioning the company to accelerate its deleveraging plan [5][29] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience (ASUX) segment revenues were flat, with Active Safety revenues increasing by 9% and User Experience down 14% due to the roll-off of legacy programs [12][24] - Engineered Components Group (ECG) revenues increased by 1%, driven by 24% growth in China, offsetting declines in North America and Europe [14][26] - Electrical Distribution Systems (EDS) revenues declined by 3%, primarily due to lower light vehicle production, but bookings included over $1 billion in new business awards [16][26] Market Data and Key Metrics Changes - In North America, revenues were down 2%, while in Europe, revenues decreased by 4% year-over-year [22][23] - In China, revenues grew by 2% year-over-year, driven by growth with local OEMs, despite significant production volume declines with a specific EV customer [23][26] Company Strategy and Development Direction - The company is focused on the transition to electrified, software-defined, and connected solutions, positioning itself to enable this transition across multiple end markets [6][8] - The separation of the EDS business is on track, expected to create two independent public companies with unique product portfolios and financial profiles [6][32] - The company is adapting to evolving trade policies and customer needs, optimizing its supply chain and manufacturing footprint to mitigate tariff impacts [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth drivers of the business, despite current uncertainties due to rapid changes in global trade policies [7][8] - The company plans to update its full-year outlook once visibility improves, particularly regarding customer demand in the second half of the year [8][31] - Management highlighted strong cash flow generation and a robust balance sheet, providing flexibility to pursue growth opportunities [29][30] Other Important Information - The company completed a $3 billion accelerated share repurchase program, reducing its share count by 18% [6] - Bookings for the first quarter were nearly $5 billion, with strong traction in China and across various segments [10][11] Q&A Session Summary Question: Outlook and Tariff Impact - Management confirmed that the second quarter outlook is based on current visibility, with a focus on vehicle production and customer pricing strategies for the second half [34][36] Question: High-Value Production Relocation - Management indicated that high-value production could potentially move back to the U.S., but this does not include the wire harness business [38][40] Question: Advanced Content Bidding Launches - Management noted robust activity in advanced content bidding, although customer award timelines have been delayed [44][45] Question: EDS Spin Update - The separation plan for EDS remains unchanged, focusing on growth and efficiency improvements [46][47] Question: Volume Decline Implications - Management clarified that the volume decline in the second half is primarily due to uncertainty in vehicle production schedules [50][52] Question: China Market Performance - Management acknowledged strong growth in China, despite being impacted by a significant global EV manufacturer [60][61] Question: Tariff Commentary - Management confirmed that 99% of goods imported are USMCA compliant, implying minimal tariff costs [76][77]