Nemak SAB de CV (OTCPK:NMAKF)

$ 0.107 0 (0%) Market Cap: 322.73 Mil Enterprise Value: 2.05 Bil PE Ratio: 4.65 PB Ratio: 0.20 GF Score: 41/100

Q2 2024 Nemak SAB de CV Earnings Call Transcript

Jul 17, 2024 / 05:00PM GMT

Release Date Price: $0.169

Transcript

Key Points

Positve

Nemak SAB de CV (NMAKF) improved its EBITDA to $163 million, a 6% increase year-over-year despite challenging conditions in the automotive industry.
The company has implemented a cost reduction program, optimizing discretionary spending, right-sizing headcount, and improving manufacturing costs.
Nemak SAB de CV (NMAKF) was awarded business contracts worth approximately $165 million year-to-date, with minimal investments required to maximize existing assets.
The company received prestigious 2024 Automotive News PACE Awards for innovation in lightweight high-pressure die casting and an aluminum subframe prototype.
Nemak SAB de CV (NMAKF) continues to advance its sustainability agenda, certifying additional facilities with the Aluminum Stewardship Initiative performance standard.

Negative

Overall volume decreased by 6% due to a slowdown in EV adoption and changes in customer production schedules.
Revenue declined by 5% year-over-year to $1.3 billion, primarily due to volume reduction and product mix changes.
Net debt increased to $1.75 billion from $1.68 billion at the end of the last quarter, driven by working capital requirements and pending customer claims.
The company faces ongoing inflationary pressures and underutilized capacity in the e-mobility, structure, and chassis application segment.
Nemak SAB de CV (NMAKF) is experiencing a slowdown in electrification, leading to a reassessment of peak revenue for contracts in the e-mobility segment, which is expected to be lower than originally anticipated.

Operator

Good morning, everyone, and welcome to Nemak's second-quarter 2024 earnings webcast. Armando Tamez, Nemak's CEO; Alberto Sada, CFO; and Denise Reyes, Investor Relations Officer, are here this morning to discuss the company's business performance and answer any questions that you may have. As a reminder, today's event is being recorded and will be available on the company's Investor Relations website.

I will now turn the call over to Denise Reyes.

Denise Reyes

Nemak SAB de CV - Investor Relations

Thank you, operator. Good morning and welcome, everyone. We greatly appreciate your participation. Armando Tamez, our CEO, will lead off today's call by providing an overview of business and financial highlights from the quarter. Alberto Sada, our CFO, will then discuss our financial results in more detail. Afterwards, we will open for a Q&A session, which participants may access via dial-in or webcast.

Before we get started, let me remind you that information discussed on today's call may include forward-looking statements regarding the company

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