Q3 2024 Kongsberg Automotive ASA Earnings Call Transcript
Key Points
- Kongsberg Automotive Holdings ASA (KGAUF) achieved a significant improvement in EBIT margin, reaching 2.9% year-to-date, up from 0.1% in the same period last year.
- The company is on track for overhead cost reductions of EUR 17 million in 2024, with additional savings of at least EUR 10 million expected to take full effect from Q3 2025.
- New business wins are at a record EUR 1.23 billion year-to-date, indicating strong alignment with top Tier-1 customer needs.
- The company has a robust order book, with 85% of anticipated revenues for 2026 and 70% for 2028 already booked or awarded.
- Kongsberg Automotive Holdings ASA (KGAUF) is focusing on higher-margin products, with more than 40% of revenues in 2028 expected to come from air couplings, gear control units, and electric actuators.
- Revenues decreased by 16.9% in Q3 compared to the same period last year, reflecting lower demand in the automotive markets.
- The company experienced a 13.7% reduction in revenues within commercial vehicles in Europe and a 20% decrease in passenger vehicle sales year-to-date.
- Free cash flow was negative EUR 5.2 million in Q3, indicating challenges in cash generation despite positive cash flow from operations.
- The company faced higher than expected warranty costs, impacting EBIT by EUR 4 million due to issues with products manufactured between 2019 and 2022.
- The global automotive market remains weak, with significant declines in both commercial vehicle and passenger car production, affecting Kongsberg Automotive Holdings ASA (KGAUF)'s sales.
Good morning, everyone. Thank you for joining us today and welcome to Kongsberg Automotive Q3 2024 earnings call. My name is Teresa Sjöborg Communication director and I will be the moderator for today's session.
Before we begin, I would like to remind you that questions can be raised in the webcast tool.
We will prioritize questions posted in English and encourage everyone to limit the number of questions to two per participant.
Joining us today as presenters are President and CEO Linda Nyquist Evernud and CFO Christian Johansson.
On the right hand side of the slide, you will see the topics that they will present today.
Now, I will give the word over to our President and CEO Linda Nyquist Evernud.
Thank you Teresa and Good morning. And once again, welcome to this Q3 earnings call Christian and I will take you through our results for the quarter. So let's move to the next slide. And the executive summary. 2024 is
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