Samuel Struhsaker's questions to Barrick Gold Corp (B) leadership • Q1 2024
Question
Samuel Struhsaker from Truist Securities, Inc. asked for details on the drivers of lower productivity in certain Aerospace OEM facilities and the expected sales trajectory for the acquired MB Aerospace business. He also inquired about the company's level of visibility in the aftermarket.
Answer
CEO Thomas Hook explained that OEM productivity challenges stem from supply chain inconsistencies and labor inefficiencies with newer employees, noting that leadership changes have been made to address these issues. He stated that while he wouldn't break out MB Aerospace's sales, the combined deal model is on track, with a favorable shift toward the aftermarket. Hook confirmed a robust aftermarket environment, with visibility supported by strong demand for legacy engines like the CFM56, though growth is tempered by supply chain availability.