Q2 2024 NACCO Industries Inc Earnings Call Transcript
Key Points
- Operating profit increased substantially by 321% year-over-year, driven by a $4.5 million gain on the sale of a legacy land asset.
- Excluding the gain, operating profit still increased over 60% from last year's second quarter.
- North American mining segment delivered strong year-over-year earnings improvement, with operating profit up 39% and segment adjusted EBITDA up 36%.
- Mississippi Lignite Mining Company's Red Hills mine operated more efficiently this quarter, contributing to improved results.
- The company is making meaningful progress in diversifying its North American mining segment, including mining phosphate for a new customer in Florida.
- Coal mining segment revenues decreased due to fewer coal deliveries as a result of the Red Hills power plant running on only one boiler.
- Minerals management's earnings were down year-over-year, primarily due to a 39% decline in revenues driven by lower natural gas and oil prices.
- Operating profit improvements were offset by a $2.6 million year-over-year unfavorable change in other expenses, driven by higher net interest expense and unfavorable changes in the market value of equity securities.
- Mitigation resources of North America business results were down year-over-year due to a change in the mix of projects.
- Projected consolidated net income and adjusted EBITDA are expected to decrease in the second half of 2024 compared with the first half, partly due to an anticipated non-cash pension settlement charge.
Good morning, ladies and gentlemen, and welcome to the NACCO Industries second quarter 2024 earnings conference call. (Operator Instructions) This call is being recorded on Thursday, August 1, 2024.
I would now like to turn the conference over to Christina Kmetko. Please go ahead.
Thank you. Good morning, everyone, and welcome to our second-quarter 2024 earnings call. Thank you for joining us this morning. I'm Christina Kmetko, and I'm responsible for investor relations at NACCO. Joining me today are J.C. Butler, President and Chief Executive Officer; and Elizabeth Loveman, Senior Vice President and Controller.
Yesterday, we published our 2024 second quarter results and filed our 10-Q. This information is available on our website. Today's call is also being webcast. The webcast will be on our website later this morning and available for approximately 12 months.
Our remarks that follow, including answers to your questions, contain forward-looking statements. These
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