Q2 2024 Elmos Semiconductor SE Earnings Call Transcript
Key Points
- Elmos Semiconductor SE (FRA:ELG) reported a solid year-over-year sales growth of 4.4% in Q2 2024, reaching EUR 142 million, despite ongoing inventory adjustments by customers.
- The company achieved an EBIT margin increase to 25.3% in Q2 2024, up from 24.8% the previous year, due to lower R&D and SG&A expenses.
- Elmos Semiconductor SE (FRA:ELG) has been promoted to the TecDAX Index, recognizing it as one of the 30 largest listed technology companies in Germany.
- The company is confident in its design wins and expects to overachieve its targets, indicating strong future growth potential.
- Elmos Semiconductor SE (FRA:ELG) is actively localizing its operations in China, which is expected to enhance its market position and growth in the region.
- The automotive semiconductor market is experiencing a normalization phase, with ongoing inventory corrections by customers, which may extend into the second half of the year.
- The global automotive market forecast for 2024 has been slightly adjusted downward, with production volumes expected at around 89 million units, compared to 90 million units last year.
- The company's gross margin decreased to 45.2% in Q2 2024 from 48.9% in Q2 2023, partly due to the absence of one-time effects such as energy price compensation.
- Working capital remains high, impacting cash flow, although the company expects to reduce it over the next year or two.
- Visibility for Q4 2024 remains limited, with uncertainties around customer orders and inventory corrections potentially affecting performance.
Good morning, ladies and gentlemen, and welcome to the Elmos Semiconductor SE Analyst Conference Call regarding the Q2 results. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation.
Let me now turn the floor over to your host, Dr. Arne Schneider, CEO.
Good morning, ladies and gentlemen. I would like to welcome all of you to our conference call for the second quarter 2024. Thank you very much for your participation and your interest in our company. All relevant figures can be found in our investor presentation, which is available on the Elmos website. And of course, you have the opportunity to ask questions at the end of my presentation. Ladies and gentlemen, Elmos was able to continue its positive financial performance in the second quarter despite ongoing challenging market condition, and we are on track for another successful year.
Let me
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