Financial Data and Key Metrics Changes - Ternium reported a sequential increase in EBITDA driven by improved margins and slightly higher shipments [6] - Net income for Q1 2025 stood at $142 million, including a $45 million provision adjustment charge related to ongoing litigation [18] - Adjusted net income, excluding the major charge, was $188 million, marking a significant improvement over the prior quarter [19] Business Line Data and Key Metrics Changes - The steel segment saw higher shipments in Brazil and other markets, partially offset by lower sales volumes in Mexico [19] - Mining segment shipments increased slightly quarter over quarter and rose 14% year over year, driven by higher production levels in Mexico and Brazil [22] Market Data and Key Metrics Changes - In Mexico, apparent consumption of steel decreased almost 5% in 2024, affecting demand [30] - Brazilian trade authorities reported a significant year-over-year increase in imports during Q1 2025, with ongoing anti-dumping investigations on imports from China [9] Company Strategy and Development Direction - The company aims to enhance competitiveness by increasing operational efficiency and reducing costs amid a challenging trade environment [10] - Ternium's expansion project in Mexico has a revised total CapEx of $4 billion, representing a 16% increase compared to previous estimates [12] - The company expects to achieve a double-digit EBITDA margin in Q2 2025, supported by increased realized prices and cost reduction initiatives [11] Management's Comments on Operating Environment and Future Outlook - Management noted that trade tensions and uncertainty are impacting global economic growth, but there is optimism regarding the Plan Mexico initiative to enhance industrialization [6][8] - The outlook for the steel sector in Argentina is improving, with expectations of a 20% increase in shipments in the upcoming quarters [56] Other Important Information - The company maintains a strong balance sheet with a net cash position of $1.3 billion as of March 2025 [23] - Ternium's CapEx for 2025 is projected to be around $2.5 billion, with significant investments in ongoing projects [23] Q&A Session Summary Question: Situation in Mexico and GDP impact - Management acknowledged the challenging environment in Mexico, with expectations for demand to improve in the following quarters, particularly in the commercial market [30][31] Question: Margins and profitability outlook - Management indicated that margins are expected to improve in Q2 2025, with a potential return to more reasonable levels compared to previous quarters [37][38] Question: Cost reduction and volume growth opportunities - Management confirmed ongoing cost reduction programs and highlighted the potential for volume growth in Mexico due to decreased imports [41][45] Question: Cash returns and dividend payments - Management expressed confidence in sustaining dividend payments despite ongoing CapEx plans, citing a solid financial position [54] Question: Argentina's steel sector outlook - Management noted improvements in Argentina's steel sector, with expectations for increased shipments and no immediate plans for capacity expansion [56] Question: CapEx increase reasons and timeline - Management explained that the CapEx increase was due to higher construction costs and inflation, with the additional costs expected to be distributed over the project timeline [64]

Core Viewpoint - Electrolux Group reported solid organic sales growth of 7.9% in Q1 2025, driven by North America and Latin America, while facing increased market uncertainty and adjusting its outlook for the year [4][5][6]. Financial Performance - Net sales reached SEK 32,576 million, an increase from SEK 31,077 million, with organic sales growth of 7.9% compared to a decline of 3.7% in the previous year [6]. - Operating income improved significantly to SEK 452 million, up from a loss of SEK 720 million, resulting in an operating margin of 1.4%, compared to -2.3% last year [6]. - Income for the period was SEK 42 million, a recovery from a loss of SEK 1,230 million, with earnings per share at SEK 0.16, up from -4.55 [6]. Market Environment - The market environment showed increased uncertainty, particularly in North America and Europe, where consumer confidence declined due to economic concerns and U.S. trade policy developments [4][5]. - In Latin America, consumer demand increased slightly, mainly driven by Brazil, amidst rising competitive pressure [4]. Strategic Initiatives - The company is focused on driving profitable growth through investments in innovation and marketing, aiming for SEK 3.5-4 billion in cost savings for the full year 2025 [7]. - Cost reduction initiatives contributed SEK 1.4 billion in efficiency for the quarter, supporting improved financial performance [6][7]. Outlook - The demand outlook for home appliances is increasingly uncertain, leading to an adjustment in the market outlook for North America from "Neutral" to "Neutral to negative" for 2025 [5]. - The company expects a positive impact from volume/price/mix due to price increases aimed at offsetting tariff-related cost inflation, changing the external factors outlook from "Negative" to "Significantly negative" [5].

Core Insights - Aptiv PLC is expected to release its first-quarter 2025 results on May 1, with consensus estimates for earnings per share (EPS) at $1.55 and revenues at $4.78 billion, indicating a 33.62% growth in EPS year-over-year [1][2] Financial Performance - The Zacks Consensus Estimate for Aptiv's quarterly revenues suggests a year-over-year decline of 2.40%, despite the company beating earnings estimates in the last four quarters with an average surprise of 9.88% [2] - In Q4 2024, Aptiv reported an adjusted EPS of $1.75, surpassing the Zacks Consensus Estimate of $1.66, and net sales of $4.91 billion, exceeding the estimate of $4.88 billion, with the top line remaining flat year-over-year [2] Revenue Projections - For full-year 2025, Aptiv projects revenues between $19.6 billion and $20.4 billion, reflecting a 2% year-over-year increase at the midpoint, driven by mid-single-digit growth in the AS&UX business and low-single-digit growth in the ECG business [3] Cost Management and Margins - The advanced safety and user experience segment is benefiting from cost reductions by shifting AI workloads to the edge, contributing to improved margins [4] - For 2025, Aptiv expects an adjusted EBITDA margin in the range of 15.8% to 16.1%, compared to 15.7% reported in 2024 [5] Earnings Expectations - Aptiv has a positive Earnings ESP of +3.50%, indicating a likelihood of an earnings beat for the upcoming quarter, supported by a Zacks Rank of 3 [6][7]

Financial Data and Key Metrics Changes - The company reported a net loss of $39 million or $0.15 per share for Q1 2025, with adjusted EBITDA at negative $4 million compared to flat adjusted EBITDA in Q1 2024 [32] - Cash COGS per metric ton was approximately $3,650 for Q1 2025, reflecting a 21% year-over-year reduction [34] - Total liquidity at the end of Q1 2025 was $421 million, consisting of $214 million in cash and $107 million available under the revolving credit facility [36] Business Line Data and Key Metrics Changes - Sales volume increased by 2% year-over-year in Q1 2025, with a total of 25,000 metric tons sold [27] - The average selling price for Q1 2025 was $4,100 per metric ton, representing a 20% year-over-year decline [28] - Sales volume in the U.S. grew by nearly 25% year-over-year in Q1 2025, significantly increasing market share [10][27] Market Data and Key Metrics Changes - Global steel production outside of China was approximately 209 million tons in Q1 2025, slightly below the previous year [24] - U.S. steel production saw a 1% reduction in Q1 2025, while EU steel output decreased by 3% year-to-date [25] - The capacity utilization rate for the company was 63%, a more than 500 basis point increase from the prior year [26] Company Strategy and Development Direction - The company is focused on increasing sales volume, regaining market share, and improving financial performance through strategic initiatives [6][8] - A key goal is to grow volume and market share in the U.S., which is the highest-priced region in the industry [9] - The company plans to increase prices by 15% on uncommitted volumes for 2025 to restore pricing and profitability levels [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that current market conditions remain challenging, but expressed optimism about future opportunities [7] - The company is well-positioned to capitalize on potential recovery in the EU market due to supportive policy changes and infrastructure investments [39] - Management emphasized the importance of a healthy graphite electrode industry for the steel industry and the need for pricing improvements [8][10] Other Important Information - The company has made significant strides in reducing costs, achieving a 23% year-over-year reduction in cash COGS per metric ton in 2024 [13] - The company is actively assessing global trade policies and tariffs to mitigate potential impacts on its business [14][18] - The company maintains a strong focus on safety, achieving a reduction in total recordable incident rates [23] Q&A Session Summary Question: Impact of tariffs on U.S. market pricing - Management noted that tariffs on Indian materials could significantly impact their availability in the U.S. market, potentially benefiting the company [46][47] Question: Market share recovery and growth potential - Management indicated that they are ahead of previous market share levels and expect continued growth throughout the year [47][49] Question: Sales percentage from U.S. and Western Europe - Management confirmed that over 50% of sales now come from the U.S. and Western Europe combined [54] Question: Pricing acceptance for the 15% increase - Management expressed optimism about customer acceptance of the price increase, emphasizing the importance of their value proposition [58][60] Question: Long-term outlook for steel utilization rates - Management remains cautiously optimistic about steel utilization rates, citing potential opportunities for growth despite current uncertainties [68][70] Question: Pricing guidance for electrodes and needle coke - Management indicated that while there is uncertainty, they expect some price stability and potential increases in both needle coke and electrode pricing [75][76]

Core Insights - Eastman Chemical Company (EMN) reported first-quarter 2025 earnings of $1.57 per share, a 12.9% increase from $1.39 in the same quarter last year, with adjusted earnings of $1.91 per share, up 18.6% from $1.61, surpassing the Zacks Consensus Estimate of $1.89 [1][2] Financial Performance - Revenues for the first quarter were $2,290 million, missing the Zacks Consensus Estimate of $2,308.6 million, and reflecting a 1% decrease from $2,310 million in the prior-year quarter [2] - Cash used in operating activities totaled $167 million, and dividends paid to stockholders were $96 million [7] Segment Performance - **Advanced Materials**: Revenues fell 3.9% year over year to $719 million, missing the estimate of $763.7 million due to reduced selling prices and unfavorable sales volume mix [3] - **Additives & Functional Products**: Revenues increased 4.1% year over year to $733 million, exceeding the estimate of $703.3 million, driven by higher selling prices and improved sales volume mix [4] - **Chemical Intermediates**: Net sales rose 4.2% year over year to $545 million, beating the estimate of $533.5 million, attributed to increased selling prices and a stronger sales volume mix [5] - **Fibers**: Net sales declined 12.9% year over year to $288 million, missing the estimate of $325 million, primarily due to a less favorable sales volume mix and reduced selling prices [6] Guidance and Outlook - The company raised its cost reduction goal to approximately $75 million and lowered capital expenditures to about $550 million, indicating a strong position to manage challenges from increasing tariffs [8] - EMN anticipates generating around $1.2 billion in operating cash flow for full-year 2025, with adjusted EPS guidance for the second quarter projected between $1.70 and $1.90 [9][11] Market Performance - EMN's shares have decreased by 15.9% over the past year, compared to a 25.7% decline in its industry [12]

Financial Data and Key Metrics Changes - The first quarter consolidated volume was 4.2 billion gallons, down 5% year over year [21] - Consolidated gross profit declined 9% from last year's first quarter to $230 million [21] - Adjusted operating expenses were $178 million in the first quarter, down 6% year over year [30] - Interest expense was $23 million in the first quarter, down over 20% year over year [31] - The adjusted effective tax rate in the first quarter was 15%, lower than the full-year guidance range of 22% to 25% [32] Business Line Data and Key Metrics Changes - Aviation volume was 1.7 billion gallons, up 2% year over year, with gross profit of $116 million, a 7% increase [23] - Land volumes decreased 6% year over year, with adjusted gross profit of $79 million, a 19% decline [25] - Marine volumes were down 14% year over year, with gross profit declining about 26% [27] Market Data and Key Metrics Changes - The North American liquid land fuel business was negatively impacted by market trends and broader economic conditions [9] - Volume in Singapore, the world's largest bunker fuel hub, dropped to its lowest level in nearly two years [28] Company Strategy and Development Direction - The company is focused on streamlining its portfolio and reducing fixed costs to improve profitability and reduce earnings volatility [8] - Recent divestments of the Brazilian and UK land businesses are part of the strategy to concentrate on core business activities [10][11] - The company aims to leverage its expertise in last half-mile distribution solutions for sustainable growth [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds but expressed confidence in achieving strategic and operational objectives [8] - The company expects profit improvement from restructuring actions by the second half of 2025 [10] - Despite uncertainty in some markets, management anticipates second quarter consolidated gross profit to be in the range of $235 to $244 million [29] Other Important Information - The company generated operating cash flow of $114 million and free cash flow of $99 million in the first quarter [32] - The company repurchased $10 million of shares during the first quarter [32] Q&A Session Summary Question: Details on the UK sale and its impact on land volumes - The UK land business generated an operating loss in 2024, and its sale is expected to improve Land's operating margin [40][41] Question: Clarification on land segment performance and future expectations - The company expects to perform better than the previous year's weak second quarter, despite ongoing economic uncertainty [62] Question: Insights on restructuring actions and expected savings - A $15 million charge was taken for restructuring, expected to result in about $30 million of annualized cost savings [85] Question: M&A opportunities in the current environment - The pipeline for acquisitions remains stable, with some opportunities arising from more reasonable seller expectations [90]

Financial Data and Key Metrics Changes - In the first quarter, consolidated volume was 4.2 billion gallons, down 5% year over year, and consolidated gross profit declined 9% to $230 million [14][20] - Adjusted operating expenses were $178 million, down 6% year over year, and interest expense was $23 million, down over 20% year over year [20][21] - Operating cash flow generated was $114 million and free cash flow was $99 million, demonstrating strong cash flow capabilities [21][24] Business Line Data and Key Metrics Changes - Aviation segment volume was 1.7 billion gallons, up 2% year over year, with gross profit increasing 7% to $116 million, driven by strong performance in airport operations and general aviation [16][22] - Land segment adjusted gross profit was $79 million, a 19% decline year over year, primarily due to weakness in the North American fuel business [17][23] - Marine segment volumes were down 14% year over year, with gross profit declining about 26% due to lower bunker fuel prices and reduced market volatility [18][19] Market Data and Key Metrics Changes - The marine market faced significant uncertainty, with Singapore's bunker fuel volume dropping to its lowest level in nearly two years [19] - Economic uncertainty affected customer dynamics, particularly in the East Coast and California, impacting both volume and margins in the land segment [43][44] Company Strategy and Development Direction - The company is focused on streamlining its portfolio and reducing fixed costs to enhance profitability and resilience [6][8] - Recent divestitures of the Brazilian and UK land businesses are part of a strategy to concentrate on core activities that align with long-term goals [12][13] - The company aims to leverage its geographic diversification to adapt to changes in trade and tariff policies [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds but expressed confidence in achieving strategic objectives and improving profitability in the second half of 2025 [7][8] - The company remains committed to enhancing operational efficiencies and driving growth in the North American land business [23][24] Other Important Information - Non-GAAP adjustments for the first quarter totaled approximately $60 million, primarily related to the sale of the UK land business [11][12] - The company expects land gross profit to improve year over year in the second quarter despite recent divestitures [18] Q&A Session Summary Question: Discussion on the UK Sale and its impact on land volumes - Management indicated that the UK business generated an operating loss and its sale would improve land operating margins and reduce capital expenditures [27][28][29] Question: Clarification on aviation segment performance - The aviation segment's strong performance was attributed to increased demand and improved margins, particularly in European airport operations [36][37] Question: Insights on land segment volume decline and future expectations - Management explained that the decline was due to economic uncertainty and evolving market dynamics, but they expect to outperform last year's weak second quarter [42][44] Question: Details on restructuring actions and cost savings - The restructuring actions resulted in a $15 million charge, expected to yield about $30 million in annualized cost savings, with full recognition anticipated by the third quarter [53][54] Question: M&A opportunities in the current environment - The company sees a stable pipeline for acquisitions, with some opportunities arising from more reasonable seller expectations, despite some deals being paused due to deteriorating seller conditions [56][57]

Financial Data and Key Metrics Changes - Net sales were $10.4 billion, down 3% year-over-year, reflecting declines in all operating segments due to margin pressures [8][10] - EBITDA was $944 million, down compared to the same period last year, as volume gains were offset by margin compression [10] - Cash flow from continuing operations was $104 million, with returns to shareholders totaling $494 million in dividends for the quarter [10][12] Business Line Data and Key Metrics Changes - **Packaging and Specialty Plastics**: Net sales decreased year-over-year due to pricing pressures, although volume improved by 4% [25][26] - **Industrial Intermediate and Infrastructure**: Net sales declined both year-over-year and sequentially, with a 1% volume gain driven by improved supply availability [27][30] - **Performance Materials and Coatings**: Net sales decreased 4% year-over-year, but operating EBIT increased due to lower fixed costs [31][33] Market Data and Key Metrics Changes - Global demand remains below historical average GDP levels, with significant impacts from tariffs affecting expectations for growth [42][43] - North American domestic demand continues to grow, but there are concerns about inventory levels and inflation [44][46] - European markets are experiencing softness, particularly in housing demand, with a decline in building permits [46][48] Company Strategy and Development Direction - The company is focused on operational discipline, cost reductions, and aligning capacity to slower GDP conditions [8][14] - A strategic review of select European assets has been expanded, particularly in polyurethanes, to enhance near-term cash flow [12][20] - The company aims to deliver at least $1 billion in targeted cost savings by 2026, with a focus on improving margins and long-term competitiveness [60][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the prolonged downturn in the industry, with a third consecutive year of below 3% GDP growth [14][68] - The company remains agile, taking decisive actions to reduce costs and protect margins amid geopolitical and macroeconomic concerns [14][68] - Future visibility is contingent on tariff negotiations and overall demand recovery, with a commitment to transparency in updates [49][124] Other Important Information - The company expects to receive approximately $2.4 billion from a strategic transaction with Macquarie Asset Management, with potential additional proceeds later in the year [13][58] - A final ruling on pending litigation is expected to yield over $1 billion in cash proceeds [13][60] - The company is delaying construction on a major project to align with market conditions, reducing total CapEx for 2025 by approximately $1 billion [11][18] Q&A Session Summary Question: Context on Alberta project delay and market conditions - Management indicated that the decision to delay was based on current market uncertainties and will be revisited regularly [73][78] Question: Outlook for EBITDA improvement in the second half - Management highlighted upcoming projects that will contribute positively, alongside expected cost reductions and normalization of input costs [81][84] Question: Impact of Chinese tariffs on polyethylene prices - Management discussed the active engagement in tariff discussions and the potential for reconfiguring supply chains to mitigate impacts [88][90] Question: Security of the dividend in the current environment - Management emphasized the importance of maintaining dividend yield and the need to monitor macro conditions closely [120][123] Question: Strategic review of European assets - Management explained the expansion of the review scope due to better ownership opportunities and the need to rationalize capacity in response to market conditions [134][135]

Financial Performance & Strategic Actions - Net sales reached $10.4 billion, marking the 6th consecutive quarter of YoY volume growth[6] - Operating EBITDA was $944 million, a decrease YoY[6] - The company is implementing at least $1 billion in annualized cost reductions across 2025 & 2026[6] - Expect ~$4 billion in unique-to-Dow cash levers in 2025, including up to ~$3 billion from infrastructure asset sales and >$1 billion NOVA judgment[6] Capital Expenditure & Asset Review - Total CapEx for the quarter was $685 million, below D&A levels, and will remain below for FY25[6] - 2025 CapEx is now expected to be $2.5 billion, a reduction of ~$1 billion compared to the original plan of $3.5 billion[9,45] - The company is expanding the scope of its European asset review to include 3 additional upstream assets for further action, potentially leading to idling or shutting down facilities[6,9] Segment Performance Highlights - Packaging & Specialty Plastics: Revenue of $5.31 billion in 1Q25[11] - Industrial Intermediates & Infrastructure: Revenue of $2.855 billion in 1Q25[16] - Performance Materials & Coatings: Revenue of $2.071 billion in 1Q25[23] Outlook & Cash Support - Expect to receive initial cash proceeds of ~$2.4 billion for a 40% equity stake in select USGC infrastructure assets, with a potential additional ~$600 million if an option is exercised[45]

Stonegate Updates Coverage on Hooker Furniture Corporation (HOFT) Q4 FY25 Click image above to view full announcement. About Stonegate Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies. Source: Stonegate, Inc. April 21, 2025 9:30 AM ...