Q3 2024 Trelleborg AB Earnings Call Transcript
Key Points
- Trelleborg AB (TBABF) managed to maintain a stable EBITA margin of 17.3% despite currency headwinds and a challenging market environment.
- The company successfully closed the acquisition of Baron Group, significantly enhancing its position in the medical business and expanding its geographical reach.
- Strong growth was observed in Asia, particularly in LNG and infrastructure projects, contributing positively to the overall performance.
- Trelleborg AB (TBABF) continues to focus on sustainability, achieving 87% renewable and fossil-free electricity usage.
- The company is actively investing in new factories and expanding its global footprint, with projects in Costa Rica, Vietnam, and India, positioning itself for future growth.
- Overall sales were flat compared to the previous year, with a slight decline in EBITA due to unfavorable currency movements.
- The North American market experienced a downturn, particularly in the fluid power business related to construction and agriculture equipment.
- Central costs were high in the quarter, attributed to increased M&A activity, impacting overall profitability.
- The company anticipates a slightly lower outlook for the next quarter, citing potential early holiday shutdowns and continued inventory adjustments in key markets.
- Organic sales growth in the medical solutions segment was only 1%, reflecting ongoing challenges with inventory management among customers.
Welcome to all of you to this call where we're going to discuss and present our Q3 results for 2024. Speaking Peter Nilsson, President and CEO and also on the call, you will also have Fredrik Nilsson, our group CFO and potentially depending on the questions, Christopher Sjoegren is also here to join in our head of investor relations if there is any question in his way.
And so, with that, we start and turning now which is already on, I see the, the agendas where we have our usual agenda for our quarterly call starting with some general highlights and some comments individually on all three business areas.
Then Fredrik is going to join us in the call and guide you through the financials and then we summing up as usual also with the summary on the quarter again and then some comments on the running quarter and then finish off the call with the Q&A session.
And so, turning to page 3 heading of our report is I think mixed performance and get back and comment a little bit more about that. What would
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