02.11.21
Driven by continued recovery of global automotive production, an increase in demand for engineered polymers, and ongoing global paving activity, Ingevity Corporation reported solid gains for its fourth quarter and full year 2020.
“We finished the year strongly and delivered solid fourth quarter results,” said John Fortson, president and CEO. “Our businesses were resilient despite challenging conditions. Strong automotive production and sales in China and a highly favorable shift to trucks and SUVs in the US and Canada were significant tailwinds. In addition, we benefitted from promising increases in sales of engineered polymers and slight growth in North American paving sales.”
These sales gains were partially offset by reduced revenues in the oilfield and printing inks markets.
“The cost-reduction actions we took midyear are continuing to benefit our profitability,” Fortson said. “Our fourth quarter adjusted EBITDA margin rose solidly and was a fourth quarter record.”
Fourth quarter net sales of $325.6 million were up 7.3% versus the prior year fourth quarter. Net income of $50.8 million increased 14.7% and net income margin of 15.6% was up from 14.6% in the prior year. Fourth quarter operating cash flow of $153.3 million increased 79.3% from the prior year period.
Full year 2020 net sales of $1.216 million were down 5.9% versus the prior year. Net income of $186.2 million increased 1.4% and net income margin of 15.3% was up from 14.2% in the prior year. Adjusted EBITDA of $397.9 million were up 2.4% versus 2019. Adjusted EBITDA margin of 32.7% was up 200 basis points from the prior year.
Fortson sees good opportunities ahead for Ingevity.
“Overall, despite challenging global macroeconomic conditions, we will deliver strong results in 2021,” said Fortson. “2020 was a challenging year but it demonstrated our ability to be flexible and drive performance through consistent execution, and that’s something we’ll continue into 2021.”
“We finished the year strongly and delivered solid fourth quarter results,” said John Fortson, president and CEO. “Our businesses were resilient despite challenging conditions. Strong automotive production and sales in China and a highly favorable shift to trucks and SUVs in the US and Canada were significant tailwinds. In addition, we benefitted from promising increases in sales of engineered polymers and slight growth in North American paving sales.”
These sales gains were partially offset by reduced revenues in the oilfield and printing inks markets.
“The cost-reduction actions we took midyear are continuing to benefit our profitability,” Fortson said. “Our fourth quarter adjusted EBITDA margin rose solidly and was a fourth quarter record.”
Fourth quarter net sales of $325.6 million were up 7.3% versus the prior year fourth quarter. Net income of $50.8 million increased 14.7% and net income margin of 15.6% was up from 14.6% in the prior year. Fourth quarter operating cash flow of $153.3 million increased 79.3% from the prior year period.
Full year 2020 net sales of $1.216 million were down 5.9% versus the prior year. Net income of $186.2 million increased 1.4% and net income margin of 15.3% was up from 14.2% in the prior year. Adjusted EBITDA of $397.9 million were up 2.4% versus 2019. Adjusted EBITDA margin of 32.7% was up 200 basis points from the prior year.
Fortson sees good opportunities ahead for Ingevity.
“Overall, despite challenging global macroeconomic conditions, we will deliver strong results in 2021,” said Fortson. “2020 was a challenging year but it demonstrated our ability to be flexible and drive performance through consistent execution, and that’s something we’ll continue into 2021.”