Kuo (KUO B) Q3 2023 earnings summary

Executive summary

• 3Q23 revenue fell 21.9% YoY to $13,348 million and EBITDA declined 33.3% to $1,034 million; net majority result was a $156 million loss.

• Chemical-sector weakness, inventory devaluation and peso-related effects outweighed gains in Consumer and Automotive businesses.

Financial highlights

• 3Q23 gross profit was $2,364 million, or 17.7% of revenue; operating profit was $432 million, down 50.4% YoY.

• 9M23 revenue declined 14.7% to $41,568 million; EBITDA fell 36.9% to $3,068 million and controlling-interest profit fell 71.0% to $493 million.

• 3Q23 net financial expenses were $498 million; the $90 million tax provision comprised $160 million current tax and a $70 million deferred tax benefit.

• Exports were 51% of 3Q23 revenue; exports declined 26.0% YoY to $6,827 million.

Outlook and guidance

• Electric GT’s conversion systems are expected to enable Transmissions’ entry into the vehicle electrification market.

• Forward-looking expectations are subject to political, economic, business, competitive, market, regulatory and sector-cyclical risks.