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Jun 30, 2022
Advansix Q2 2022 Earnings Report
Reported robust sales, earnings, and cash flow, driven by strong commercial performance and the integration of U.S. Amines.
Key Takeaways
AdvanSix announced strong second-quarter results with sales up 33% year-over-year to $584 million and earnings per share of $2.23. The company highlighted the strength of its business model and diverse product portfolio, with strong commercial performance offsetting higher inflation and lower sales volume due to unfavorable weather conditions.
Sales increased by approximately 33% compared to the prior year, influenced by market-based pricing, raw material pass-through pricing, and contributions from acquisitions.
Net income reached $65.2 million, marking a $21.0 million increase from the previous year.
Cash flow from operations totaled $95.9 million, reflecting a $43.9 million increase compared to the prior year.
The company announced a 16% increase in the quarterly dividend, raising it to $0.145 per share.
Revenue by Segment
Forward Guidance
AdvanSix is targeting significant earnings growth in 2022, supported by its integrated business model and diverse end-market exposure. The company anticipates continued healthy demand in North America for nylon and chemical intermediates, along with favorable conditions in the agriculture industry.
Positive Outlook
- Targeting significant earnings growth in 2022 supported by strength of our integrated business model and diverse end market exposure
- Expect continued healthy North America demand for nylon and chemical intermediates
- Expect favorable underlying agriculture industry fundamentals to continue; North America ammonium sulfate seasonality expected to drive 3Q22 higher export mix sequentially
- Successful integration of U.S. Amines expected to deliver year one earnings accretion
- Continue to expect Capital Expenditures to be $95 to $105 million in 2022
Challenges Ahead
- Continue to expect pre-tax income impact of planned plant turnarounds to be approximately $32 to $37 million in 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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