Ferronordic AB (publ) (FNM) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you. This is Lars Corneliusson here and welcome to the report on our first quarter of 2025. And if we can press... Oh, sorry. And we call the report Steady Despite Uncertainty and obviously there are There is increased uncertainty in our markets and in our industry. We will obviously come back to that. And despite that uncertainty, our revenue actually increased by 3% to 1.2 billion Swedish kronor. However, we saw a decline in gross profits and that was partly due to revenue and product mix. And selling and administrative costs came down. And that was partly thanks to cost reduction that we have entered upon and lower sales commissions. So we had an operating results which decreased to 13 million, which was mainly a result of the lower gross margin. We also had net debt that decreased to 1.8 billion. If we go to the next slide, clearly there is an uncertainty on the tariffs and the fiscal policy in the US, which obviously is also then in itself spreading over to Germany to an already weak market in Germany. We should, however, say that despite this uncertainty, the mood among our customers in the US remains very good. However, dealers still have high levels of machines in inventory and in their rental fleets. So mainly thanks to a robust service and parts business that we have, our underlying business remained stable. If we look at the market, the US construction equipment market declined 5% in Q1. Our sales of new equipment and sales from the rental fleet decreased by 6% in units. In Germany, the truck market continued to decrease and decreased by 28% actually during the quarter. Whereas our sales of new trucks decreased by 6% and then we obviously took market shares in Germany. One very positive thing in Germany is that we continue to reduce the inventory. Th...