Half Year 2024 Nexteer Automotive Group Ltd Earnings Call Transcript
Key Points
- Nexteer Automotive Group Ltd (NTXVF) launched a record 38 programs in the first half of 2024, including 32 new or conquest awards and 18 pure BEV models.
- The company secured $2.1 billion in new business bookings in the first half, with significant contributions from Chinese NEV customers.
- Nexteer achieved first-half 2024 revenue of $2.1 billion, with EBITDA growing by 6% year over year and margins expanding by 50 basis points.
- Operational efficiency initiatives, such as global supply chain management and fixed cost reductions, are enhancing profitability and resiliency.
- The company is on track to achieve its full-year booking target of $6 billion, demonstrating strong business momentum and market alignment.
- The Brazil flood impacted first-half results with lower revenue and increased operational costs.
- Unfavorable foreign exchange rates, particularly the Polish zloty and Mexican peso strengthening against the RMB, negatively affected financial performance.
- Net profit of $16 million was lower by $18 million compared to last year, partly due to a $14 million impairment charge from customer program cancellations.
- North America revenue decreased by 6.3% year over year, driven by certain customer programs ending and underperformance in the truck and SUV segment.
- The company faces ongoing pricing pressures in the competitive APAC market, particularly due to extended price wars among OEMs.
Ladies and gentlemen, welcome to Nexteer Automotive Group Limited 2024 interim results conference call. (Operator Instructions)
I would now like to turn the conference over to Investor Relations Director, Mr. Tony Wang. Please go ahead.
Thank you, Drew. Welcome, everyone, to our 2024 interim earning call. We made the announcement of our interim results this evening, Hong Kong time. Presentation materials for today's call were posted on the Investors section of company website early this evening.
During today's call, we have Executive Board Director, President, CTO, and Chief Strategy Officer, Robin Milavec; Senior Vice President and CFO, Mike Bierlein; Senior Vice President and COO, Hervé Boyer. Starting the presentation, we will have Robin to provide an update of the company's business overview for the first half of 2024. After that, Mike will go through financial assessment as well as wrap up with company's considerations for 2024 before we open Q&A session for you
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