Q2 2024 Ependion AB Earnings Call Transcript
Key Points
- Ependion AB (FRA:TW4) maintained its market share despite weaker market demand.
- The company doubled its free cash flow compared to last year, driven by reduced accounts receivables and inventory reductions.
- Ependion AB (FRA:TW4) made a strategic minority investment in Blu Wireless, aiming to leverage millimeter-wave technology for high-speed train connectivity.
- The company is continuing with selective forward-looking investments, including the establishment of Westermo India.
- High activity in product development, with several new product launches planned, including the new generation of HMIs (X3 family) and the WebIQ software platform.
- Both business entities faced lower order bookings compared to the same quarter last year.
- Westermo's sales and profitability were negatively impacted by lower volumes.
- Beijer Electronics experienced a drop in gross margin due to the unfavorable mix related to display solutions.
- The overall order intake was down 31% compared to the boosted quarter of last year.
- The company anticipates continued challenging market conditions and a weaker order book for the coming quarter.
And good afternoon, ladies and gentlemen, and welcome to Ependion Q2 report 2024 conference call. (Operator Instructions) This call is being recorded on Monday, July 15, 2024.
I will now like turn the call over to our CEO. Jenny, please go ahead.
Thank you very much. So welcome, everyone to this quarter two presentation. As usual, it is myself, Jenny Sjödahl, here in Västerås, together with Joakim Laurén, our CFO, who is today in Malmö. So the agenda is the same as usual, I will start with a general business update. After that, Joakim will dig deeper into the numbers. And then finally, I will give some concluding notes and outlook. And then we will open up for Q&A.
So let's dive straight into the quarter. Well, as you probably have seen, we have a quarter now that is, just like we expected, affected by the weaker market demand that we have seen now for the last 12 months period. And my view is that we are keeping our market shares. We are not losing any business in
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