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: Tamy Chen - BMO Capital Markets Equity Research - Analyst
: This is Chen filling in for Peter. My first question is did you guys capitalize on the government wage subsidy programs that were available in certain
countries? And if so, what was the impact in Q2?
Question: Tamy Chen - BMO Capital Markets Equity Research - Analyst
: And going forward, what is your intention in regards to the NCIB?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Well, first off, I think you guys did a good job managing through the quarter, protecting the balance sheet and protecting the business. So good
job on that. I guess, just first, maybe just the first question. Fred, you just sort of touched on this last question, but on this cost takeout, just to make
sure I'm understanding, again, there were some structural costs taken out of the business, but it was stuff that was sort of preplanned, it's just
moving forward. Is that the best way to sort of think about that?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: For the -- I think you said the target for the year of free cash flow is roughly breakeven. I'm just trying to do some quick math on the fly here, but I
think that would suggest working cap is relatively neutral for the year. Maybe my math is wrong, but at least the back half, where I would have
thought it would have been maybe bigger investments just given the ramp-up. But I guess, is that sort of how you're thinking about the second
half in terms of the working cap, or no?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. Maybe I can ask the 2021 CapEx question another way. The last couple of years, you've been trying to -- I'm going to try. For the last couple
years, you've been trying to run at $300 million. Presumably, next year, industry sales are -- you're still below where you were in 2018, 2019. It takes
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AUGUST 11, 2020 / 1:45PM, MRE.TO - Q2 2020 Martinrea International Inc Earnings Call
a couple of years to get there. So I guess, our thinking is that CapEx is still down, but maybe there's some deferrals this year that need to slip into
next year. So I'm just -- again, sort of just directionally, like, should we be thinking somewhere between sort of 2020, 2019 CapEx? Or again, you
can just tell me, no comment. But...
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Yes. That's very helpful. I would've guessed maybe a little higher, but that's very helpful. Maybe just one last one then. Just based on the Q3 guide,
obviously. It sounds like things are going fairly well, and you guys have touched on this. I'm just curious just generally how the ramp has gone at
Martinrea. Any sort of material issues? Anything with suppliers? Is anything noteworthy? And that's it.
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