02.16.23
Avient Corporation announced its fourth quarter and full year results for 2022.
Fourth quarter and full year GAAP earnings per share (EPS) from continuing operations were $(0.19) and $0.90, respectively.
For 4Q 2022, sales were $790.4 million, down slightly from $807.1 million in 4Q 2021. Operating income for the three-month period was $400,000, down from $50. 2 million in 4Q 2021.
For the full year, sales were $3.396.9 billion, up from $3.315 billion in 2021. Operating income for the full year was $243.3 million, down slightly from $279.7 in 4Q 2021.
"Orders in Europe and Asia were slightly better than expected at the end of the year. In addition, demand for composites including Dyneema applications for personal protection were also higher," said Robert M. Patterson, chairman, president and CEO, Avient Corporation. "Combined with better margins, our adjusted EPS for the quarter exceeded our projections by $0.09.
"That being said, versus the prior year, global demand conditions and inventory destocking negatively impacted nearly every industry and region during the quarter," Patterson added. "We focused on controlling costs and reducing working capital, generating an additional $90 million of free cash flow above our previous projections. We used the incremental cash to pay down debt in December and ended the year with net debt to adjusted EBITDA leverage of 2.9x, below prior guidance of 3.1x.
"I'm incredibly proud of the two transformational portfolio enhancements completed during 2022," Patterson said. "We bolstered our composites business with the acquisition of APM and divested our Distribution segment. We then paid down $950 million of debt, providing us a strong balance sheet to navigate through this period of macro-economic uncertainty."
"As we begin 2023, we remain focused on executing our strategy, including integrating the APM business and being prudent and proactive in optimizing our cost structure," said Jamie A. Beggs, SVP and CFO. "This includes restructuring actions to accelerate the remaining synergies associated with the Clariant Color acquisition, particularly in Europe.
“In the first quarter, we expect to experience similar demand conditions as in the fourth quarter of 2022, driven by negative consumer sentiment, rising interest rates and a slow restart of China,” added Beggs. “We do expect conditions to improve in the second half of the year driven by performance in our key growth drivers, particularly sustainable solutions and composites. Given these factors we anticipate full-year sales of $3.45 billion, adjusted EBITDA of $530 million and adjusted EPS of $2.40."
Fourth quarter and full year GAAP earnings per share (EPS) from continuing operations were $(0.19) and $0.90, respectively.
For 4Q 2022, sales were $790.4 million, down slightly from $807.1 million in 4Q 2021. Operating income for the three-month period was $400,000, down from $50. 2 million in 4Q 2021.
For the full year, sales were $3.396.9 billion, up from $3.315 billion in 2021. Operating income for the full year was $243.3 million, down slightly from $279.7 in 4Q 2021.
"Orders in Europe and Asia were slightly better than expected at the end of the year. In addition, demand for composites including Dyneema applications for personal protection were also higher," said Robert M. Patterson, chairman, president and CEO, Avient Corporation. "Combined with better margins, our adjusted EPS for the quarter exceeded our projections by $0.09.
"That being said, versus the prior year, global demand conditions and inventory destocking negatively impacted nearly every industry and region during the quarter," Patterson added. "We focused on controlling costs and reducing working capital, generating an additional $90 million of free cash flow above our previous projections. We used the incremental cash to pay down debt in December and ended the year with net debt to adjusted EBITDA leverage of 2.9x, below prior guidance of 3.1x.
"I'm incredibly proud of the two transformational portfolio enhancements completed during 2022," Patterson said. "We bolstered our composites business with the acquisition of APM and divested our Distribution segment. We then paid down $950 million of debt, providing us a strong balance sheet to navigate through this period of macro-economic uncertainty."
"As we begin 2023, we remain focused on executing our strategy, including integrating the APM business and being prudent and proactive in optimizing our cost structure," said Jamie A. Beggs, SVP and CFO. "This includes restructuring actions to accelerate the remaining synergies associated with the Clariant Color acquisition, particularly in Europe.
“In the first quarter, we expect to experience similar demand conditions as in the fourth quarter of 2022, driven by negative consumer sentiment, rising interest rates and a slow restart of China,” added Beggs. “We do expect conditions to improve in the second half of the year driven by performance in our key growth drivers, particularly sustainable solutions and composites. Given these factors we anticipate full-year sales of $3.45 billion, adjusted EBITDA of $530 million and adjusted EPS of $2.40."