Southwest Airlines Co. (LUV) Bernstein's 39th Annual Strategic Decisions Conference 2023 (Transcript)
2023-06-02 01:47
Southwest Airlines Co. (NYSE:LUV) Bernstein's 39th Annual Strategic Decisions Conference 2023 June 1, 2023 1:30 PM ET Company Participants Bob Jordan - President and CEO Conference Call Participants David Vernon - Bernstein David Vernon Thank you, everyone, and good afternoon for our next session here at Bernstein's 39th Annual Strategic Decisions Conference. My name is David Vernon. I cover transports and airlines. We're joined today by Bob Jordan, Southwest; Tammy Romo, CFO; Ryan Martinez; and Julie. Sorr ...
Carrier Global Corporation (CARR) Bernstein's 39th Annual Strategic Decisions Conference 2023 (Transcript)
2023-06-02 00:47
Carrier Global Corporation Conference Call Summary Company Overview - **Company**: Carrier Global Corporation (NYSE:CARR) - **Event**: Bernstein's 39th Annual Strategic Decisions Conference 2023 - **Date**: June 1, 2023 - **Participants**: David Gitlin (CEO and Chairman), Brendan Luecke (Bernstein Analyst) Key Points Industry and Market Position - Carrier is focused on becoming a leader in intelligent climate and energy solutions, emphasizing energy efficiency and climate-friendly technologies [14][15] - The company is integrating with Viessmann Climate Solutions, which is positioned in the fastest-growing market globally for home energy management solutions [3][4] Financial Performance and Strategy - Aftermarket sales increased in the high teens during Q1 2023, with expectations for price/cost benefits to improve in Q2 [2] - The company aims to achieve strong productivity to fund growth investments [2] - Carrier's net debt has decreased from $10 billion at the time of its spin-off to $5 billion, with a target leverage ratio of under 2 within a couple of years post-Viessmann acquisition [11][12] Business Exits - Carrier plans to exit its fire and security and commercial refrigeration businesses, which generated approximately $3.1 billion and $1.1 billion in sales, respectively [5][6] - The company has received significant interest from potential buyers, indicating confidence in achieving favorable multiples [4][6] Acquisition of Viessmann - The acquisition of Viessmann is expected to close by the end of 2023, enhancing Carrier's position in the residential heating market in Europe [17][18] - Viessmann is recognized for its direct-to-installer channel and comprehensive product portfolio, which complements Carrier's existing offerings [48] Market Trends and Growth Opportunities - The transition from fossil fuel heating to electric heating (heat pumps) is driving significant growth in Europe, with a projected increase in heat pump installations from 1 million to 10 million by 2030 [35][36] - Carrier anticipates a compound annual growth rate (CAGR) of around 20% for heat pumps in Europe, driven by regulatory changes banning fossil fuel heating [35][36] Digital Transformation and Services - Carrier is investing in digital tools like Abound, which provides real-time monitoring of carbon emissions and energy efficiency for commercial buildings [86][87] - The company aims to grow aftermarket sales from $4.5 billion to $7 billion by 2026, leveraging its existing installed base and improving attachment rates [40][81] Challenges and Risks - The North American residential HVAC market is experiencing a downturn, with expectations of flat sales and a high single-digit volume decline for 2023 [66] - Regulatory changes in Europe may impact growth, but the overarching trend towards electrification is expected to continue [41][43] Conclusion - Carrier is strategically positioning itself for future growth through acquisitions, divestments, and a focus on digital solutions and energy efficiency, while navigating current market challenges and regulatory landscapes [19][53]
Nikola Corporation (NKLA) Nikola CEO Fireside Chat and Q&A Webcast Conference (Transcript)
2023-06-01 23:05
Nikola Corporation (NASDAQ:NKLA) Nikola CEO Fireside Chat and Q&A Webcast Conference Transcript June 1, 2023 4:30 PM ET Executives Dhillon Sandhu - Investor Relation Michael Lohscheller - Chief Executive Officer Analysts Michael Lohscheller Good afternoon, everyone, and thank you for joining me for our Chat and Q&A. I???m Michael Lohscheller, CEO of Nikola Corporation. The purpose of this discussion is to answer any questions you may have related to our upcoming Annual Meeting of Stockholders scheduled for ...
Bank of America Corporation (BAC) Presents at Bernstein 39th Annual Strategic Decisions Conference (Transcript)
2023-06-01 22:49
Bank of America Corporation (NYSE:BAC) Bernstein 39th Annual Strategic Decisions Conference June 1, 2023 2:30 PM ET Company Participants Brian Moynihan - Chief Executive Officer Conference Call Participants John McDonald - Bernstein John McDonald Okay, we're ready to go. Thanks, everyone. Appreciate you joining us. We're happy to have Bank of America back again, CEO, Brian Moynihan. Brian thanks for joining us. Brian Moynihan It's good to be here, John. Good to be here. Question-and-Answer Session Q - John ...
Caterpillar Inc. (CAT) Bernstein's 39th Annual Strategic Decisions Conference 2023 (Transcript)
2023-06-01 21:59
Caterpillar Inc. (NYSE:CAT) Bernstein's 39th Annual Strategic Decisions Conference 2023 June 1, 2023 2:30 PM ET Company Participants Ryan Fiedler - Head of Investor Relations Jim Umpleby - Chairman and Chief Executive Officer Conference Call Participants Chad Dillard - Bernstein Operator Hi. Good afternoon, everyone. My name is Chad Dillard. I'm the lead analyst here at Bernstein for the Machinery, Engineering, and Construction sector. And I'm really excited to have Caterpillar here today to have a conversa ...
eBay Inc. (EBAY) Bernstein's 39th Annual Strategic Decisions Conference 2023 Transcript
2023-06-01 21:53
eBay Inc. (NASDAQ:EBAY) Bernstein's 39th Annual Strategic Decisions Conference 2023 June 1, 2023 11:00 AM ET Company Participants Steve Priest - Chief Financial Officer Conference Call Participants Nikhil Devnani - Bernstein Nikhil Devnani Good morning, everybody. Thank you for joining. My name is Nikhil Devnani, I'm Bernstein's U.S. midcap Internet analyst; And it's a pleasure to have Steve Priest, eBay’s CFO with me on stage today. Steve took over as CFO in June of 2021, and it's been obviously a very dyn ...
The Kraft Heinz Company (KHC) Presents at Bernstein's 39th Annual Strategic Decisions Conference 2023 (Transcript)
2023-06-01 20:43
Summary of Kraft Heinz Company Conference Call Company Overview - **Company**: The Kraft Heinz Company (NASDAQ: KHC) - **Event**: Bernstein's 39th Annual Strategic Decisions Conference 2023 - **Date**: June 1, 2023 - **Participants**: Miguel Patricio (CEO), Alexia Howard (Bernstein) Key Points Company Resilience and Transformation - Kraft Heinz was in a challenging position prior to Miguel Patricio's leadership, but has shown resilience during crises such as the pandemic and inflation [2][3] - The company has implemented AGILE@SCALE initiatives to enhance responsiveness to market dynamics and collaborate with external partners like NotCo and Microsoft [2] Growth Strategy - The company aims for organic growth, shifting from a previous focus on inorganic growth, emphasizing marketing and innovation [5][6] - Kraft Heinz has set a target to generate $2 billion in incremental net sales from innovation over the next five years [8] - The growth strategy includes focusing on Emerging Markets, Foodservice, and specific growth platforms in the U.S. such as Taste Elevation and Convenience Meals [15][16] Financial Performance - In the first quarter, Kraft Heinz achieved a 120 basis points improvement in margins and reported strong growth in Foodservice (30%) and Emerging Markets (23%) [4][15] - The company expects to improve gross margins by 125 to 175 basis points this year, driven by better pricing, product mix, and cost reductions [39] Organizational Changes - Significant cultural changes have been made to prioritize organic growth, marketing, and R&D, with a focus on consumer needs [6][7] - Employee engagement has improved dramatically, with only 7% of employees now unwilling to recommend the company, down from 40% four years ago [10] - The company has centralized revenue management and created 32 multifunctional pods to address high-priority projects [22][24] Innovation and R&D - Kraft Heinz is focusing on disciplined innovation, avoiding the pitfalls of launching numerous unsuccessful products [28][30] - The company has adopted a more strategic approach to R&D, emphasizing incremental innovation and testing products in smaller markets before wider launches [30] Capital Allocation and Divestments - Dividends remain a top priority, alongside maintaining investment-grade status and increasing capital expenditures for innovation and automation [32][33] - The company has divested non-core assets and plans to continue reshaping its portfolio to align with evolving consumer preferences [36][37] ESG Initiatives - Kraft Heinz is committed to becoming carbon neutral by 2050 and aims to use only recyclable or compostable packaging by 2025 [47][48] - The company is actively working on reducing sugar and salt in its products, achieving a 40% reduction in sugar content in Capri Sun [49][50] Supply Chain and Operational Improvements - Service levels have improved significantly, with mid-90s service levels reported in Q1 [52] - Challenges remain in sourcing certain ingredients, such as potatoes, but overall supply chain issues are normalizing [52] Future Outlook - The company anticipates significant growth from its focus on Emerging Markets and Foodservice, projecting a transformative trajectory over the next decade [64][65] - Internal transformations, including improved collaboration and innovation culture, are expected to yield substantial long-term benefits [65] Additional Insights - The company is leveraging artificial intelligence in revenue management to optimize promotional strategies and improve ROI [42][25] - Kraft Heinz is exploring new product innovations, including customizable sauce machines for foodservice, indicating a commitment to enhancing customer experience [66][67]
Salesforce, Inc. (CRM) Jefferies Software Conference (Transcript)
2023-06-01 20:05
Salesforce, Inc. (NYSE:CRM) Jefferies Software Conference Call June 1, 2023 2:00 PM ET Company Participants Brian Millham - President and Chief Operating Officer Conference Call Participants Brent Thill - Jefferies Brent Thill Brian Millham is with us, President and CEO of Salesforce, really excited to have you here. Thanks for making the trip, especially after earnings. Brian Millham Yeah. No problem. Thanks for the invite. It's great to be here. Brent Thill 23-year vet of Salesforce was helped really buil ...
Lockheed Martin Corporation (LMT) Bernstein's 39th Annual Strategic Decisions Conference 2023 (Transcript)
2023-06-01 19:45
Lockheed Martin Corporation Conference Call Summary Company Overview - **Company**: Lockheed Martin Corporation (NYSE:LMT) - **Event**: Bernstein's 39th Annual Strategic Decisions Conference 2023 - **Date**: June 1, 2023 - **Participants**: - James Taiclet - Chairman, President and CEO - Jesus Malave - Chief Financial Officer - Douglas Harned - Bernstein Research Analyst Key Industry Insights Opportunities from the Ukraine Conflict - The Ukraine conflict has highlighted the need for rapid production capabilities in the defense industry, revealing that current production systems are insufficient to meet urgent demands [4][6] - High utilization rates of guided munitions have exceeded prior expectations, indicating a need for increased production capacity [4] - The integration of digital technology in military operations has proven effective, with Ukraine's adaptation serving as a model for other military services [5] - The effectiveness of allied responses and interoperability among NATO allies has been emphasized as a critical learning point [5] Strategic Initiatives - Lockheed Martin aims to enhance the resilience of its defense production system to absorb shocks and respond to increased demand [6][7] - The company is advocating for multi-year contracts and long lead-time supply agreements to facilitate rapid production increases when necessary [7] - A focus on "21st century security" involves collaboration with commercial technology leaders to integrate digital techniques into national defense [8] - Lockheed Martin is pursuing a global production and sustainment strategy to enhance operational efficiency and responsiveness [9] Financial Outlook Budget and Growth Projections - The President's budget supports Lockheed Martin's production goals, particularly for the F-35 program, with sufficient funding to meet the target of 156 aircraft per year [11][12] - The company anticipates a 3% growth in defense spending over the next two years, which is favorable for Lockheed Martin [12] - Lockheed Martin's backlog at the end of 2022 was $150 billion, with an 11% growth in 2022, indicating strong demand across its portfolio [16] - Expected growth in 2024 is supported by solid orders, particularly in the Munitions and Fire Control (MFC) segment [17] Specific Program Insights - The F-35 program is projected to maintain a production value of approximately $18 billion, with production expected to be flat but sustainment growing at a 6% CAGR over five years [22][23] - The company is actively pursuing hypersonic technology development, with several programs in progress, including Conventional Prompt Strike and ARRW [54][55] - Lockheed Martin's space segment is transitioning from legacy programs to new opportunities, with a focus on proliferated constellations and partnerships [61][62] Challenges and Risks Supply Chain and Margin Pressures - Supply chain issues have impacted various programs, with challenges in ramping up production due to workforce shortages and system upgrades [47][50] - The MFC segment is facing margin pressures due to a classified program with negative margins, but overall margins are expected to stabilize [43][44] Future Bidding Strategy - Lockheed Martin's approach to bidding on future programs will remain disciplined, focusing on economic viability rather than aggressive pricing strategies [75] Conclusion - Lockheed Martin is well-positioned to capitalize on current defense spending trends and emerging opportunities in digital technology and hypersonics, while also navigating challenges in production and supply chain management. The company's strategic focus on resilience and global operations is expected to drive growth in the coming years.
American Express Company (AXP) 2023 Bernstein's 39th Annual Strategic Decisions Conference Transcript
2023-06-01 19:36
American Express Company (NYSE:AXP) 2023 Bernstein's 39th Annual Strategic Decisions Conference Call June 1, 2023 11:00 AM ET Company Participants Steve Squeri - Chairman & Chief Executive Officer Conference Call Participants Unidentified Analyst Let's get started. Thanks as everyone filters in here. We're delighted to have Steve Squeri, Chairman and Chief Executive Officer of American Express, a role he's held since February of 2018. We'll talk about it through the session, but Steve's tenure has been nota ...