Q3 2024 Stabilus SE Earnings Call Transcript
Key Points
- Stabilus SE (SIUAF) reported a 14.4% increase in sales quarter-over-quarter, driven by the consolidation of DESTACO.
- DESTACO generated EUR48.8 million in revenues with a 19.9% EBIT margin, which is in line with expectations.
- The company is seeing positive organic revenue growth in the Asia Pacific region, up 3.2%.
- Stabilus SE (SIUAF) has implemented cost-cutting and efficiency programs across all plants, showing early positive results.
- The company remains confident in achieving its STAR 2030 goals despite challenging market conditions.
- Organic revenue growth in the EMEA region was down by 5.1%, and in the Americas, it was down by 3%.
- The automotive and commercial vehicle sectors experienced softer sales, impacting overall revenue.
- Fixed cost leverage was negatively impacted by volume reductions in the second half of the year.
- The company faced significant labor cost inflation, ranging from 5% to 11% globally.
- Integration costs for DESTACO are expected to increase in the fourth quarter, impacting profitability.
Welcome to our quarterly call today. We have Stefan Bauerreis, our CFO; Andreas Schroder, Investor Relations; and myself, Michael Buechsner, CEO of the Stabilus Group on the call. We have some good news for you today, the market is stabilizing for us in the fourth quarter and the first-time consolidation of DESTACO contributes positive to our financials, so let's go into the details.
As expected, we saw some softer call-offs in the third quarter, which we forecasted, and this is mainly driven by our bigger OEMs and also by the electric car segments. However, customer demand is stabilizing in the fourth quarter and therefore, in the third quarter, the organic revenue growth in Asia Pacific was positive 3.2%, organic development in the EMEA a little softer as expected, 5%, 0.1%, 5.1% negative and in Americas, minus 3%. Also here, softer, impacted by lower quantities, automotive and commercial vehicle sector.
However, the consolidation of the stake really drove our sales and we, overall, quarter-to
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