Sales for the third quarter of 2019 ("Q3 2019") were $1,740.0 million, down $97.3 million from $1,837.3 million in Q3 2018.
The Industrial segment ("Industrial") product sales decreased 21.5%, or $104.2 million, to $380.6 million in Q3 2019 from Q3 2018. The sales decrease was due to:
• lower agricultural sales due to poor crop conditions, stagnant commodity prices and the ongoing trade dispute between the US and China governments; and
• reduced access equipment volumes in Europe and North America as certain key customers adjust their 2019 capital spend in light of uncertainty in the markets.
Sales for the Transportation segment ("Transportation") increased by $6.9 million, or 0.5% in Q3 2019 compared with Q3 2018. The sales in Q3 2019 were impacted by:
• additional sales from programs that are currently launching; partially offset by
• a reduction of sales related to certain programs that are naturally ending;
• a reduction in sales as a result of the United Auto Workers Union strike at General Motor's US locations that began in September 2019; and
• an unfavourable impact on sales from the changes in foreign exchange rates from Q3 2018.
• Transportation segment sales up slightly at $1.4 billion but normalized Operating Earnings up 15.1%;
• Free cash flow1,2 of $90 million;
• Strong content per vehicle growth in Europe and Asia as the Company outperforms the market;
• Continued growth in boom market share in core North American and European markets;
• Sales decreased 5.3% over the third quarter of 2018 ("Q3 2018") to $1.7 billion;
• Normalized EBITDA strong at $243.1 million and 14% of sales;
• Continued business wins further strengthens launch book to more than $4.4 billion;
• Takeover business at $200 million year to date; and
• Industrial segment sales down 21.5% due to lower agricultural sales and reduced access equipment volumes in Europe and North America resulting in Operating Earnings declines.