2 weeks Ago By GuruFocus.com
In This Article: Release Date: February 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Negative Points Q & A Highlights Q : Can you provide some insights into the growth development by sub-segments within the EMC business, particularly automotive versus telecom, and the operating leverage achieved with the 20% organic growth? A : Growth was observed across all sectors, with telecom contributing significantly to the high growth rate this quarter. While the growth supports margins, it is not dramatically impactful.
The favorable product mix across the business area supports the margin. Unidentified_3 Q : If you strip out EMC from the business, how close is Nolato to achieving a 10% margin, and what steps are being taken to improve operations outside of EMC? A : We have excess capacity in Asia due to a strategic decision to consolidate production, which affects margins. This capacity is intended to support new business growth, particularly in consumer electronics, which currently has a lower margin than the group average.
Unidentified_2 Q : Regarding the new customer project in engineered solutions, will it improve utilization in Chinese production, and what is its expected size and timeline? A : We are not focusing on a single large contract but rather building growth through multiple areas, which takes time. This approach aligns with our plan and is progressing as expected. Unidentified_2.
