Half Year 2024 Georg Fischer AG Earnings Call Transcript
Key Points
- GF Piping Systems demonstrated resilience in European markets and increased profitability to a comparable EBIT margin of 13.3%.
- GF Casting Solutions significantly improved profitability towards an EBIT margin of 8.8%, driven by strong business momentum in China.
- The integration of Uponor is ahead of plan, with achieved synergies exceeding initial expectations for 2024.
- Products with social or environmental benefits now account for 73% of the group's total sales, surpassing the 2025 target of 70%.
- GF's half-year sales exceeded CHF2 billion for the first time, reaching CHF2.4 billion, a growth of 22.8%.
- The strong Swiss franc and weak construction market in Europe negatively impacted business activities.
- Organic sales declined by 3.2% year-on-year, reflecting a subdued first quarter.
- GF Machining Solutions started the year with an exceptionally weak quarter, resulting in a break-even comparable EBIT.
- Negative currency effects put pressure on EBIT, resulting in a decrease of CHF17 million.
- The European construction market faced continued headwinds, with building permits declining in the double-digit range.
Welcome, and thank you for joining our mid-year results webcast. Here with us today our CFO, Mads Joergensen; Head Investor Relations, Nadine Gruber; and Head Corporate Communications, Beat Römer; I am Andreas Müller, CEO of GF.
Let's turn to slide 3. Our GF the beginning of 2024 was characterized by significant challenges in key market segments. The uncertain economic environment and ongoing geopolitical tensions negatively impacted customer sentiment, particularly in the capital goods sector.
Additionally, the strong Swiss franc and a weak construction market in Europe adversely affected our business activities. However, since the beginning of the second quarter, GF has been gaining momentum in various key markets.
GF Piping Systems demonstrated resilience in European markets in a challenging environment and is gaining momentum on the back of the industrial rebound in North America's. Despite temporary weakness in some key segments such as microelectronics, the division was able to slightly increase
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