Q3 2024 Andritz AG Earnings Call Transcript
Key Points
- Andritz AG (ADRZF) reported a 6% increase in order intake for Q3 2024 compared to the same period last year, indicating strong demand in certain sectors.
- The company maintained a stable EBITDA margin of 8.4%, demonstrating effective cost management despite challenging market conditions.
- There was a notable increase in the service business, which now constitutes 40% of total revenue, up from 38%, reflecting a strategic shift towards more stable revenue streams.
- The metals segment showed strong order intake in Q3, particularly in metals processing and forming, suggesting potential growth in these areas.
- Andritz AG (ADRZF) is making progress in its ESG targets, with many KPIs already achieved or overachieved ahead of the 2025 targets, showcasing its commitment to sustainability.
- Revenue for Q3 2024 decreased by 3% year-on-year, indicating challenges in converting order intake into revenue.
- The order backlog decreased by 9% year-on-year, reflecting potential future revenue challenges.
- The pulp and paper segment experienced a significant decline in order intake and revenue, down nearly 20%, highlighting sector-specific difficulties.
- The company had to make additional provisions for capacity adjustments, indicating ongoing challenges in aligning production with demand.
- Andritz AG (ADRZF) faces pricing pressure due to market conditions, which may impact its ability to pass on cost increases to customers in the future.
A warm welcome from our side, Matthias from IR. Thank you for joining our Q3 earnings call. The call today will be held by our CEO, Dr. Joachim Schönbeck; and our CFO, Norbert Nettesheim.
Please also look at the disclaimer for a second. As you can see in the agenda, we will start with the key co messages and the Q3 highlights followed by the more detailed financial performance and an update on the business areas followed again by the outlook for 2024 and the Q&A session. And it's my pleasure now to hand over to our CEO, Dr. Joachim Schönbeck.
Good morning to everybody. Thank you very much for joining us in this this call, early morning, early morning in your time. And we have the next slide, please. I think we had another would say challenging quarter behind us. Economically challenging, believe interest rates are however, moving in the right direction for us. None of the global crisis
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