Garrett Motion Inc. (NASDAQ:GTX) Q4 2022 Earnings Call Transcript

Olivier Rabiller: Well, what we — when you look at the way the cost structure of the company is build up, and I’m giving you the glide-over view. So we have positioned ourself to deliver a stronger with assumptions on the industry that are flat. Meaning, in contradiction with some of the consultants, we did not factor any tailwind from industry growth and I’m saying industry growth is like . Because — and history has shown that, when you look at the last two years, everybody was wrong. So we decided to position the company right from the fixed cost standpoint to deliver in an industry that would be flat; doesn’t mean that we are flat, because we are growing in volumes, thanks to our share of demand growing and the turbo penetration growing.

So, quite frankly, when you look at the way we have planned the year, when fixed cost offset, there is no reason for a significant increase of fixed cost that would be driven by volume up. We have very significant portion of our cost that is variable, which is a way to protect on the downside, but it’s also a way to deliver on the upside. So that’s the way we are thinking about it.

Chris McIntyre: Great, great. Thank you, guys, very much.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Olivier Rabiller. Please, go ahead.

Olivier Rabiller: Thank you. Well, thank you all for your time you spent with us reviewing the results of 2022 and the outlook for 2023. I’m quite pleased about what we deliver and then the way we’ve positioned the company in 2022. We have been planning very carefully 2023, as we’ve said on the call, depending on the macroeconomics. It could be better, but we have prepared the company to deliver in a flat environment and we are looking forward to 2023 to be a strong success that will reinforce our financial position and given — give us, sorry, even more options for the future. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.