Q3 2024 Nemak SAB de CV Earnings Call Transcript
Key Points
- Nemak SAB de CV (NMAKF) achieved a 3% year-over-year increase in EBITDA to $169 million despite a 9% decline in volume.
- The company successfully reduced capital expenditures by 26%, maintaining a downward trend throughout the year.
- Nemak SAB de CV (NMAKF) accumulated approximately $220 million in awarded business this year, with 60% directed towards platforms offering both ICE and hybrid variants.
- The company launched and started production of a battery housing for a full electric commercial vehicle, showcasing its capability in lightweighting solutions.
- Nemak SAB de CV (NMAKF) received the 2024 Top Employer Certification at multiple sites, highlighting its commitment to a positive work environment.
- Global vehicle sales declined, and production was scaled back to manage inventory levels, impacting Nemak SAB de CV (NMAKF)'s volume.
- Revenue decreased by 4% year-over-year to $1.2 billion due to lower volume, despite a favorable product mix.
- Net income was affected by the non-cash effect of currency exchange from euro-denominated liabilities, resulting in a net income of $5 million.
- Light vehicle production in North America decreased by 3.8%, with Stellantis reducing production by 28% year-over-year.
- The company faces challenges from labor inflation and decreased demand for EV components, impacting profitability.
Good morning, everyone and welcome to Nemak's third 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.
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 live or written on the Q&A function.
Before we get started, let me remind you that information discussed on today's call may include forward-looking statements regarding the company's
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
