Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: To what extent do your pulp and paper prices benefit from electricity prices? And do you expect recovering end markets in pulp and paper to also support higher price contribution in 2025? A: We expect the markets to recover, especially towards the latter half of the year, which should support pricing. Currently, electricity prices are not expected to have a drastic impact on our 2025 performance. However, any permanent changes in electricity prices could affect our bleaching chemistry business.
Q: Could you please give more color on the fixed cost pressure? Do you expect the fixed cost pressure to intensify further in 2025 or do you expect your own measures to counter this? A: We expect a stabilizing environment with salary inflation pressures easing. Our new operating model aims to manage fixed costs more efficiently. We are also investing in growth, particularly in R&D and new ventures, but will maintain profitability.
Q: Your guidance seems conservative given expected market recovery and price hikes. Can you explain the rationale behind this? A: The guidance range accounts for potential market and economic uncertainties. While we expect improvement from 2024, factors like currency fluctuations and input cost changes could impact results. The guidance reflects confidence in achieving targets despite these variables.
Q: Can you comment on the seasonality of Industry & Water now that it is without the oil and gas segment? A: The seasonality remains, particularly in North America, where water consumption and treatment chemical usage are lower towards year-end. This results in a typical Q4 dip, which is weather-related and not significantly altered by portfolio changes.
Q: Regarding the new plant investment with IFF in Finland, is it expected to be completed in 2025, and can you comment on the payback time? A: We cannot provide specific details on the timeline or payback period at this stage. Once plans are finalized, we will announce the investment details.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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