Q2 2024 John Bean Technologies Corp Earnings Call Transcript
Key Points
- John Bean Technologies Corp (JBT) experienced a strong recovery in orders from North American poultry producers, contributing to the second-best quarter in terms of orders for their food technology segment.
- The automated material handling business (AGV) rebounded nicely in the second quarter, contributing positively to the company's performance.
- JBT's second quarter gross profit margins improved by 120 basis points year-over-year, reaching 35.6%, due to restructuring actions and supply chain initiatives.
- The company expects AGV to contribute an additional 2% to JBT's total revenue growth for 2024, reflecting improvements in manufacturing efficiency and lead time.
- JBT's updated guidance suggests a steeper quarterly progression in the back half of the year, with expectations of double-digit year-over-year revenue growth in each quarter and sequential margin improvements.
- JBT's second quarter financial performance fell short of expectations due to a revenue shortfall, primarily from book and ship orders, customer delivery scheduling, and a system upgrade issue.
- Revenue for the second quarter declined 6% year-over-year, impacted by a $4 million negative effect from foreign exchange translation.
- Adjusted EBITDA declined 11% year-over-year, as benefits from restructuring and supply chain initiatives were offset by lower volume.
- The beverage industry did not meet expectations, and the high cost of capital remains a headwind, particularly among smaller customers.
- The Asia Pacific region experienced disappointing performance with elongated order conversion cycles, impacting overall results.
Good morning, and welcome to JBT Corporation's second-quarter 2024 earnings conference call. My name is Krista, and I will be your conference operator today. (Operator Instructions)
I will now turn the call over to JBT's Vice President of Corporate Development and Investor Relations, Kedrick Meredith, to begin today's conference.
Thank you, Krista. Good morning, everyone, and welcome to our second-quarter 2024 conference call. With me on the call is our Chief Executive Officer, Brian Deck; and Chief Financial Officer, Matt Meister. In today's call, we will use forward-looking statements that are subject to the Safe Harbor language in yesterday's press release and 8-K filing. JBT's periodic SEC filings also contain information regarding risk factors that may have an impact on our results. These documents are available in the Investor Relations section of our website.
Also, our discussion today includes references to certain non-GAAP
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