Q3 2024 thyssenkrupp AG Earnings Call Transcript
Key Points
- thyssenkrupp AG (TKAMY) has established a new segment, Decarbon Technologies, which is being prepared for future growth opportunities.
- The company is working on standalone solutions for Steel Europe and Marine Systems, with significant progress in negotiations and due diligence phases.
- The APEX performance program is being implemented across businesses, showing incremental improvements.
- Steel Europe's climate targets for 2045 have been validated by the science-based targets initiative, underlining the company's commitment to green transformation.
- thyssenkrupp AG (TKAMY) has a solid balance sheet with a comfortable equity ratio of 39%, providing financial stability for ongoing transformations.
- The company had to adjust its full-year guidance due to continued challenging market conditions, reflecting a significant decline in sales.
- Decarbon Technologies faced negative one-time effects of approximately EUR 80 million due to incorrect cost accounting in the Polysius business.
- Free cash flow was negative at EUR 256 million for Q3 and EUR 983 million year-to-date, influenced by payment shifts and lower profits.
- The Steel Europe segment is operating below capacity and still producing positive results, but cash flow generation remains a challenge.
- Order intake for Decarbon Technologies has been less than one for the last two quarters, indicating potential end-market weakness or prioritization of higher-value projects.
Good day, ladies and gentlemen, and welcome to the Q3 conference call of thyssenkrupp. (Operator Instructions)
I would now like to turn the conference over to Andreas, Head of Investor Relations. Please go ahead, sir.
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Thank you very much, operator. Hello, everyone. This is Andreas Trösch from Investor Relations. Also, on behalf of my entire team, I wish you a very warm welcome to our conference call on the Q3 results. With me in the room are our CEO, Miguel López; and for the first time, our new CFO, Jens Schulte; and also my colleagues from the IR team.
Before I hand over to the CEO and CFO for their presentations, I have some housekeeping. All the documents, as usual, for this call are available in the IR section on the website. The call will be recorded, and the replay will be available shortly after the call. After the presentations, as already heard, there will be the usual Q&A session. And with that, I would like to hand over to our CEO, Miguel López.
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