Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MAHLE-Metal Leve SA reported a net sales revenue of 3.2 billion for the first nine months of 2024, showing resilience despite a challenging market environment.
- The company successfully closed acquisitions of a compressors unit in Jaguara and a 33% stake in Marco Mais Song, which are expected to enhance their market position.
- The Brazilian market for light vehicles showed a growth of 14.2% in the first nine months of 2024, indicating a strong local market performance.
- The aftermarket segment showed significant growth, with a 20.9% increase in exports, driven by a new commercial policy and dedicated sales teams in Latin America.
- MAHLE-Metal Leve SA maintained a healthy financial position with a cash generation of 500 million in nine months, supporting its strategic initiatives and investments.
Negative Points
- Net sales revenue was 20% below the levels seen in the first nine months of 2023, primarily due to a decline in exports.
- The Argentine market experienced a drop of 10.7% in light vehicle sales, impacting overall regional performance.
- There was a notable decrease in original equipment exports, particularly in the heavy-duty market in Europe and North America.
- The company faced challenges in the domestic aftermarket segment, with a significant drop in the Argentine market due to economic adjustments.
- Financial expenses increased due to changes in the company's debt profile, impacting net profit margins.
Q & A Highlights
Q: Can you elaborate on the decrease in exports within the original equipment segment and the regions most affected?
A: The decrease in exports is primarily due to a specific project involving a V8 engine valve for the US market. The European market has also shown weakness, particularly in the heavy-duty segment. However, the domestic market and aftermarket growth have helped offset these declines. β Daniel Alves, Marketing and Corporate Communications Manager
Q: Could you provide more details on the ACO project and the recent acquisitions?
A: The ACO project and the acquisition of compressors and thermal units will be detailed in Q4. ACO is a minority stake of 33%, and its financial impact will be seen in dividends and asset investments. These projects did not affect Q3 results. β Claudio Braga, CFO
Q: How should we think about future dividend payouts and potential M&A activities?
A: There are no changes to the current dividend policy. While M&A is a growth strategy, any potential activities will be discussed at the appropriate time. The focus remains on maintaining a healthy financial position. β Unidentified Corporate Representative
Q: What growth do you expect in the aftermarket segment?
A: The aftermarket segment is expected to grow through demand generation actions, closer customer relationships, and strategic initiatives in exports. The focus is on supporting mechanics and auto parts stores, which play a key role in the aftermarket. β Everton Lopes, Director of the Technology Center
Q: Can you discuss the impact of geopolitical tensions and electrification on the aftermarket business?
A: Geopolitical tensions may affect foreign exchange and transportation costs, impacting imported products. Electrification is not expected to significantly impact the aftermarket in the next five years, as electric vehicles will remain a small percentage of the fleet. β Everton Lopes, Director of the Technology Center
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
