Avient provided third quarter 2020 financial performance expectations as well as updated synergy estimates related to the Clariant Masterbatch acquisition.

"We are seeing a recovery in demand in the third quarter, and expect to deliver adjusted EPS of approximately $0.43," said Robert M. Patterson, chairman, president and CEO, Avient Corporation. "Most notably, our composites business is benefitting from increased demand for outdoor high performance applications. As a result, we expect the Specialty Engineered Materials segment will deliver over 15% EBITDA growth versus the prior year third quarter."

“We are also benefitting from the acquisition of the Clariant Masterbatch business, which has been immediately accretive to adjusted EPS,” Patterson added. "Our integration efforts are on track and very encouraging – culturally, commercially and operationally. From a synergy standpoint, we've identified additional upside from our original $60 million estimate, and now expect to achieve a run rate of $75 million in cost reductions by the end of year three."

The company noted that several end markets that were negatively impacted by the pandemic in the second quarter are recovering and expects third quarter sales and adjusted EBITDA to approximate $905 million and $107 million, respectively. 

The company also stated it expects to generate $80 million of free cash flow during the quarter and is on-track to deliver $240 million of free cash flow for the year, which compares to $160 million in 2019.

"We are pleased to see early signs of recovery from the coronavirus pandemic," Patterson said. "Our manufacturing facilities are fully operational, our commercial team is collaborating with customers, and we remain fully committed to doing everything we can to support the ongoing recovery efforts."