Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more color on the impact of higher inventory and input costs in Q1 and how you plan to address them over time? A: Greg Weitzel, CFO: We anticipate $10 million to $15 million in increased input costs spread across various areas. We have announced pricing actions to cover these costs, aiming for a net positive outcome over the year. However, Q1 will likely see a moderate negative impact due to higher inventory costs being sold through.
Q: What is your strategy regarding potential tariffs from Canada and Mexico, and have you observed any competitor actions? A: Julie Schertell, CEO: We haven't seen significant competitor actions due to market uncertainty. We have plans to mitigate tariffs, including supply chain adjustments and pricing strategies. The current tariffs have minimal impact on us, and we are prepared to adapt if new tariffs are implemented.
Q: How can the FAM segment benefit from the successes seen in the SAS segment, and is the healthcare turnaround sustainable long-term? A: Julie Schertell, CEO: FAM can leverage SAS's demand generation, strategic customer management, cross-selling opportunities, and talent across segments. The healthcare turnaround is sustainable, with over 10% growth in 2024 and accretive margins. We expect similar success in FAM, particularly in advanced films.
Q: Can you update us on the progress of previous investments in new filtration lines, release liners, and tapes, given the reduced CapEx in 2025? A: Julie Schertell, CEO: Most investments are in early stages. The melt-blown line in Germany is operational, supporting filtration. The coder in Mexico supports release liner growth. Tape lines in Italy and Canada are in early phases. We are confident in our growth-focused spending, despite reduced CapEx.
Q: What are the key areas of focus for leveraging SAS's success in the FAM segment? A: Julie Schertell, CEO: Key focus areas include demand generation with pipeline discipline, strategic customer management through joint business planning, cross-business opportunities, and leveraging talent across segments. These efforts aim to drive improvement and progress in FAM, particularly in filtration and advanced films.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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