Q2 2024 Iveco Group NV Earnings Call Transcript
Key Points
- Iveco Group NV (IVCGF) reported an adjusted EBIT margin from industrial activities at 6.9%, which is 10 basis points better than the all-time high second quarter of 2023.
- The order backlog in trucks by the end of the quarter was at a more normal level, with around 13 weeks of production already sold for light commercial vehicles and around 9 to 10 weeks for medium and heavy trucks.
- The bus business unit's order backlog covers all of 2024 and stretches well into 2025, with the first half of next year fully covered.
- Financial services net revenues totaled EUR142 million in the quarter, up 21.4% compared to the prior year.
- Iveco Group NV (IVCGF) signed a memorandum of understanding with Foton to explore potential collaboration in electric vehicles and components, which could extend their light commercial vehicle lineup.
- Consolidated revenues were slightly down versus last year, and consolidated adjusted EBIT margin was at 7.5%, which is in line with the same quarter last year.
- The company experienced a negative temporary one-off in net working capital linked to extra efforts in finalizing and getting a certain number of model year 2024 vehicles ready to ship.
- Truck deliveries were down in the second quarter by 18% on a worldwide basis versus the second quarter last year.
- The company faced challenges in ramping up the new Model Year 2024 production, which impacted the second quarter performance.
- There is a lack of visibility into the volumes and pricing for the fourth quarter, which could impact profitability.
Good day, ladies and gentlemen, and welcome to today's Iveco Group 2024 second quarter and first half year results conference call and webcast. We would like to remind you that today call is being recorded. (Operator Instructions) At this time, I will now turn the call over to Federico Donati, Head of Investor Relations. Please go ahead sir.
Thank you, Alan. Good morning, everyone. We would like to welcome you to the webcast and conference call for Iveco Group's second quarter financial results for the period ending June 30, 2024. This call is being broadcast live on our website and is copyrighted by Iveco Group. Any other use, recording or transmission of any portion of this broadcast without the express written consent of Iveco Group is strictly forbidden.
Also today call, our Iveco Group new CEO, Olof Persson; and our CFO, Anna Tanganelli. Olof and Anna would use the material made available for download on the Iveco Group website early this morning.
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