Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you explain the low 2% organic growth in Compressor Technique sales and whether this is a temporary issue? A: The lower revenues are primarily due to long lead times in Gas and Process compressors, which are expected to be temporary. Orders for long-term projects, such as those in the marine business, will contribute to future sales.
Q: What is driving the order intake growth in Vacuum Technique, particularly in Asia? A: The growth is not limited to China but is spread across countries active in the semiconductor market. Europe also saw positive orders, while the U.S. was more subdued.
Q: Can you provide more details on the restructuring costs in Vacuum Technique and their impact on margins? A: The restructuring costs are primarily focused on the industrial and scientific vacuum areas. Despite these costs, the drop-through has improved due to cost management and restructuring efforts.
Q: How is the demand for Gas and Process compressors, and what is the outlook for future orders? A: The demand remains solid with a strong project pipeline, although decision-making has slowed. Orders are long-term, supporting future revenues in 2025 and 2026.
Q: What is the outlook for the automotive sector within Industrial Technique, and how is it affecting orders? A: The automotive sector remains challenging with fewer project decisions and a negative outlook. However, long-term prospects are positive due to new technologies and flexible production lines.
Q: Can you elaborate on the high operating margin in Compressor Technique and the factors contributing to it? A: The high margin is driven by positive revenue volume effects, continued price increases, and new product lines offering energy savings. This has resulted in strong leverage and profitability.
Q: How is the customer activity level expected to change in the near term, excluding seasonality and large orders? A: Customer activity is expected to weaken somewhat, reflecting market hesitations and uncertainties.
Q: What is the current capacity utilization in Vacuum Technique, and how has it changed recently? A: Utilization rates have gradually improved, benefiting the service business. However, larger OEMs are postponing new fab investments, indicating utilization is not yet at desired levels.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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