In This Article:
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Sales Growth: 2.5% growth in the second quarter at constant exchange rates; 3.1% growth in the first half.
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EBITDA Margin: 18.6% over sales in the second quarter.
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EBITDA: EUR 190 million in the second quarter, with a growth of more than 3%.
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EBIT: EUR 142 million in the second quarter, with a growth of almost 5%.
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Net Income: EUR 184 million in the first half, with a 3% growth.
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Operating Cash Flow: Almost EUR 250 million generated in the first half, a growth of more than 5% compared to the same period last year.
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Debt Ratio: 1.45 times net financial debt over EBITDA as of June 2024.
Release Date: July 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CIE Automotive SA (CUOTF) reported a growth in sales at constant exchange rates of 2.5% in the second quarter and 3.1% in the first half of 2024, outperforming the market by 3 points.
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The company achieved an EBITDA margin of 18.6% over sales in the second quarter, showing an improvement compared to both the second quarter of 2023 and the first quarter of 2024.
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CIE Automotive SA (CUOTF) has maintained a well-balanced geographic distribution in sales, with a gradual dilution of Europe in favor of American and Asian markets.
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The company reported a 3% growth in net income in a challenging interest rate environment, reaching EUR184 million in the first half of 2024.
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CIE Automotive SA (CUOTF) continues to deleverage, with a debt ratio of 1.45 times net financial debt over EBITDA, below their usual comfort zone of 2 times.
Negative Points
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The European market experienced a contraction of 6% in the second quarter, with a forecasted overall contraction of 5% for 2024.
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Brazil faced a 2% drop in production in the first half of 2024, impacted by poor export performance and increased imports of Chinese vehicles.
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The Chinese market is experiencing an intense price war, with prices estimated to have reduced by 20% on average compared to last year.
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CIE Automotive SA (CUOTF) underperformed in the Chinese market due to the growth of local Chinese customers and suppliers, which are not profitable for the company.
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The company faces challenges with high labor costs in various markets, including Europe and the United States, impacting overall profitability.
Q & A Highlights
Q: What are the drivers for CIE Automotive's outperformance in the second quarter, and is it purely a gain in market share? A: Maria Herrera, CEO, explained that the outperformance is a trend seen across all geographic areas except China. This is due to CIE being one of the strongest players technologically and financially, leading to an increase in market share in various regions.