Financial Data and Key Metrics Changes - For Q1 2025, the company reported a net loss of $3.5 million or $0.11 per share, compared to a net loss of $2.3 million or $0.07 per share a year ago [19] - On a non-GAAP adjusted basis, net income attributable to the company was $4.3 million or $0.14 per share, down from $11.3 million or $0.37 per share last year, primarily due to lower adjusted EBITDA and higher interest expenses [19] - Consolidated sales for Q1 2025 were $401.8 million, down from $450 million a year ago, reflecting lower sales in the Industrial Technology segment and Memorialization segment [20] Business Line Data and Key Metrics Changes - Memorialization segment sales decreased to $190.5 million from $208.1 million, primarily due to lower Granite Memorial sales and casket unit volumes [22] - Industrial Technology segment sales fell to $80.5 million from $111.4 million, significantly impacted by lower engineering sales and the slowdown in the Tesla project [25] - SGK Brand Solutions segment reported sales of $130.8 million, slightly up from $130.5 million, driven by improved pricing and higher sales in private label and European cylinder businesses [27] Market Data and Key Metrics Changes - The U.S. casketed deaths declined, impacting sales in the Memorialization segment [20] - The company noted that the European cremation and incineration equipment operations were unprofitable and contributed to the decline in Memorialization sales [24] Company Strategy and Development Direction - The company plans to focus on higher growth and higher margin businesses following the sale of STK Brand Solutions, which is expected to create significant synergies and simplify the operating structure [9][10] - The recent arbitration ruling against Tesla allows the company to resume marketing its dry battery electrode technology, which is expected to unlock significant value [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the energy business and the potential for growth in the warehouse automation and product identification sectors [15] - The company is maintaining its guidance for adjusted EBITDA in the range of $200 million to $215 million, contingent on the timing of the SGK transaction [18] Other Important Information - The company expects to achieve annual consolidated savings of up to $50 million from ongoing cost reduction programs [33] - A quarterly dividend of $0.25 per share was declared, payable on February 24, 2025 [33] Q&A Session Summary Question: How quickly can momentum in DVE technology be reestablished post-lawsuit? - Management indicated that while there has been a slowdown due to the lawsuit, they expect to ramp up sales as they reinitiate marketing efforts and expand their customer base [37][39] Question: What was the impact of exiting the European cremation business on Memorialization? - The exit from the unprofitable European cremation business significantly contributed to the revenue decline in the Memorialization segment [48][52] Question: What are the next steps following the arbitration ruling against Tesla? - Management stated they have a definitive ruling in their favor and will continue to defend their rights to market and sell their proprietary technology [56][58] Question: What is the expected timeline for achieving cost savings from restructuring? - The company expects to reach a run rate of $25 million to $30 million in cost savings by the end of the fiscal year, with the remainder achieved in the following fiscal year [60] Question: How will the proceeds from the SGK transaction be used? - The company plans to apply a substantial portion of the proceeds to repay revolver debt, aiming to improve their leverage ratio [91][92]

Financial Data and Key Metrics Changes - Full year 2024 consolidated revenues decreased by 20% and industrial net sales fell by 23% compared to 2023 [11] - Industrial adjusted EBIT margin for the full year was 8.2%, down 370 basis points from 2023, primarily due to lower volumes [11] - Q4 net sales of industrial activities were down 31% year over year to $4.1 billion, driven by decreased equipment deliveries [16] - Full year net income was $1.3 billion with EPS at $1.05, down from $0.39 in Q4 2023 [16] Business Line Data and Key Metrics Changes - In agriculture, net sales decreased by 31% in Q4 and 23% for the full year, with production hours down 34% year over year in Q4 [17][18] - Construction segment saw a 33% drop in Q4 net sales, but gross margins remained flat year over year [21] - Financial Services net income for Q4 was $92 million, a decrease of $21 million compared to Q4 2023, but full year net income increased to $379 million [22][24] Market Data and Key Metrics Changes - Global industry demand is expected to decline by 5% to 10% from 2024, with a more significant decline of 10% to 15% anticipated for the company due to high exposure to cash crop equipment in North America [31] - Dealer inventories in North America are still above target levels, with about 1.5 months of new equipment inventory above expectations [31][93] Company Strategy and Development Direction - The company is focused on reducing channel inventories and maintaining pricing discipline, planning to underproduce to retail demand at least through the first half of 2025 [8][10] - A significant emphasis is placed on quality improvements and operational efficiencies, with a run rate savings of about $600 million achieved by the end of 2024 [9][25] - The company aims to maintain a healthy balance sheet while investing in product and technology advancements [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 was a challenging year due to depressed commodity prices affecting farm income and equipment demand [11][10] - The outlook for 2025 includes expectations of continued low production levels and a focus on upgrading production lines and processes [32] - Management remains cautious about geopolitical uncertainties and their potential impact on the business [26][39] Other Important Information - The company plans to maintain its annual dividend and share repurchase program in 2025, returning approximately $1.3 billion to shareholders in 2024 [28] - R&D expenses are expected to be slightly lower in 2025, around €800 million, benefiting from structural efficiencies [36] Q&A Session Summary Question: Pricing expectations for the two segments in 2025 - Management expects full year pricing to be flat to slightly positive, with the first half being flat to slightly down and the second half showing low to mid-single-digit price increases [43][44] Question: Impact of trade tariffs and production options - Management is analyzing the potential impact of tariffs on imports and is considering reshoring some assembly processes to the U.S. [46][48] Question: Core decremental margins and production versus retail plans - Management indicated that they expect to recover warranty costs throughout 2025, impacting decremental margins positively [57][58] - Production is expected to be down 10% to 15% in the first half of 2025, with a potential recovery in the second half [62] Question: Margin cadence within agriculture for 2025 - Management anticipates lower margins in the first half of 2025, with a recovery expected in the second half, returning to double-digit margins [77][79] Question: Targeted incentive programs for 2025 - The company plans to continue targeted commercial actions to reduce aged inventory and align inventory levels with market demand [86][88]