Andrew Wilson

Inquired about the progression of short-cycle orders in Q2 versus Q1 and whether the slowdown in the project business was purely due to tough comparisons or a pullback in customer decision-making.

Answer

Short-cycle orders turned positive year-over-year for the first time in six quarters, with growth seen in both Electrification and Motion. The slowdown in the long-cycle project business is attributed to timing and very strong prior-year comparisons, not a change in customer behavior, as the project pipeline remains robust.

Asked for an update on pricing dynamics, wondering if the strong momentum in some business areas could lead to a better-than-expected price outcome for the full year, and if any areas were facing pricing difficulties.

Answer

Executives noted a 1% price impact in the product business but emphasized that the true pricing power is reflected in the growing gross margin of the order book for projects and in the service business. The overall group gross margin of over 37% is the best indicator of successful pricing execution and operational efficiencies, with all business areas showing improvement.

Asked for details on the slowdown in customer decision-making in Minerals, specifically which customers are affected and whether pricing is being renegotiated on delayed projects.

Answer

The slowdown is more pronounced with junior miners due to financing challenges, while major miners are expected to increase CapEx. The delays are leading to projects being re-scoped rather than direct price renegotiations.