02.24.22
Ingevity Corporation reported its financial results for Q4 and FY 2021.
Ingevity's net sales of $336.0 million in Q4 rose 3.2% versus the prior year quarter, and FY net sales of $1.4 billion were up 14.4% compared to last year, as the company drove price increases throughout the year to help offset inflationary cost pressures.
Net income and adjusted earnings for the quarter and the full year were negatively impacted by reduced automotive emission product volumes due to the ongoing microchip constraints on global vehicle production.
Q4 net income of $29.3 million decreased 36.3% compared to prior year Q4 and FY net income of $118.1 million decreased 34.9% year over year.
Full year adjusted EBITDA of $422.2 million was up 6.1% versus 2020, despite a decline in adjusted EBITDA margin to 30.3% from prior year’s 32.7%, primarily due to the shortfall in Performance Materials automotive-related sales, which also negatively impacted operating cash flow of $293 million, down 16.9% from prior year.
“Strong Performance Chemicals volumes across the segment drove our fourth-quarter and full-year results, supported by higher selling prices in Engineered Polymers and Industrial Specialties to offset rising energy, logistics and raw materials costs, and higher selling, general and administrative expenses,” said John Fortson, president and CEO.
Ingevity announced its 2022 guidance of sales between $1.525 billion to $1.6 billion and adjusted EBITDA between $430 million to $460 million.
“Our 2022 guidance assumes Performance Chemicals revenue will outpace ongoing energy, logistics and raw materials inflation, and reflects our modest outlook for Performance Materials as we expect vehicle production will continue to be constrained by the prolonged microchip shortage and other automotive supply chain issues,” said Fortson.
Ingevity's net sales of $336.0 million in Q4 rose 3.2% versus the prior year quarter, and FY net sales of $1.4 billion were up 14.4% compared to last year, as the company drove price increases throughout the year to help offset inflationary cost pressures.
Net income and adjusted earnings for the quarter and the full year were negatively impacted by reduced automotive emission product volumes due to the ongoing microchip constraints on global vehicle production.
Q4 net income of $29.3 million decreased 36.3% compared to prior year Q4 and FY net income of $118.1 million decreased 34.9% year over year.
Full year adjusted EBITDA of $422.2 million was up 6.1% versus 2020, despite a decline in adjusted EBITDA margin to 30.3% from prior year’s 32.7%, primarily due to the shortfall in Performance Materials automotive-related sales, which also negatively impacted operating cash flow of $293 million, down 16.9% from prior year.
“Strong Performance Chemicals volumes across the segment drove our fourth-quarter and full-year results, supported by higher selling prices in Engineered Polymers and Industrial Specialties to offset rising energy, logistics and raw materials costs, and higher selling, general and administrative expenses,” said John Fortson, president and CEO.
Ingevity announced its 2022 guidance of sales between $1.525 billion to $1.6 billion and adjusted EBITDA between $430 million to $460 million.
“Our 2022 guidance assumes Performance Chemicals revenue will outpace ongoing energy, logistics and raw materials inflation, and reflects our modest outlook for Performance Materials as we expect vehicle production will continue to be constrained by the prolonged microchip shortage and other automotive supply chain issues,” said Fortson.