The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Just back on free cash flow. Can you more or less confirm the CapEx intentions? If we're talking about a 10% to 15% cut, we're still looking at close
to $1.5 billion for the year, which, depending on where sales fall out, could be 5.5%-plus of revenue. So certainly elevated. So curious on your
thoughts there. And then can you just confirm, will working capital be a use of cash for the full year? I understand the sequential pickup. Just
wondering the full year expectation.
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Got it. No, that's really helpful. And then in terms of thinking about the low-20% decrementals for the year, which was certainly a positive. Can you
provide any color on what the 2Q top-up payments actually entail, first? And then within Body Exteriors & Structures, there were some operational
underperformance noted. Wondering if there's -- if you could quantify that? And then, lastly, within Seating, it sounds as though that business
incurred another slate of launch costs in the quarter. I think the hope was that launch-related impacts might be behind the business for this year.
So just wondering if you could quantify what that impact was. And how things should trend the rest of the year?
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Yes.
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MAY 07, 2020 / 12:00PM, MG.TO - Q1 2020 Magna International Inc Earnings Call
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Yes.
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Seating launches.
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Just one question for Don or Swamy. Like as you know, other industries, for example, meat processing facilities, are having a lot of trouble with the
COVID-19. So I'm just wondering like, why are you so optimistic that you're going to be running your parts plants now? I understand that in a meat
processing plant, the employees are literally standing shoulder to shoulder, but you still have issues like shift changes and washrooms and change
rooms. And just wondering how you're going to manage all this.
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