Brookfield Business Partners L.P. (NYSE:BBU) Q3 2023 Earnings Call Transcript

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Jaeme Gloyn: Okay, great. And then secondly just going to the Clarios business, very, very strong results here. Is there – was there anything more nuanced than just a little bit of favorable mix shift to the more profitable advanced batteries that would have driven such a large result. And is this a base for Q3 that we should be thinking about going forward? Yeah, a little more on that, please.

Cyrus Madon: Denis, you want to answer that?

Denis Turcotte: I’m sorry, can you repeat the question?

Jaeme Gloyn: Yeah, sure. It’s just on the Clarios quarter, which was really strong. I was curious if there was anything more nuanced than a favorable mix shift to the higher profit advanced battery? And whether this level of profit is something we can use as a base going forward for Q3? Or was there some other factors maybe a pull forward or something along those lines? Anything nuanced in there we should be thinking about? Or is this a good base?

Denis Turcotte: No. Look, no nuance, just phenomenal performance. This management team is really getting their stride and getting this business running more, frankly, it’s at a record level. And I guess, we don’t provide forward guidance, but I’m expecting the business to do better next year than it did this year. And more importantly, management team is highly confident that’s what’s going to happen.

Jaeme Gloyn: Okay. Good to hear. Last one, actually just going back to asset sales. It seems like there’s been a few smaller ones, I guess, maybe not big enough to mention or to disclose directly. Is this – should we expect to see like that kind of activity continue where you’re generating a couple of smaller deals? Like how many are left to sell that can generate some additional gains? It looks like pretty substantial gains in this quarter from those small sales. But like how should we think about that going forward?

Cyrus Madon: Yeah. We – it’s Cyrus here. Look, we have a handful of smaller businesses. We still have a small handful at this point left, and you should expect us over time to sell those. And then, of course, as capital markets improve and capital market conditions improve, we’ll start selling some of the larger businesses as well. But, selling the smaller business – smaller businesses is something we have been focused on. For a couple of reasons: a, it gives us capital, it makes Jaspreet happy and b, it lets us focus our time and attention on the much larger businesses we have, where we can really drive value improvement for BBU.

Jaeme Gloyn: Okay, that’s great. Thank you.

Operator: Thank you. And I’m showing no further questions. So with that, I’ll hand the call back over to CEO, Cyrus Madon for any closing remarks.

Cyrus Madon: Thanks very much for joining us this quarter, and we look forward to talking to you next quarter. Thank you.

Operator: Ladies and gentlemen, thank you for participating. This concludes today’s program, and you may now disconnect.

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