AdvanSix reported a decrease in sales, net income, and EBITDA compared to the prior year, impacted by lower raw material pass-through pricing, market-based pricing pressures, and planned plant turnarounds. The company continued to invest in strategic growth and cost-saving projects.
Sales decreased by 16% due to lower raw material pass-through pricing, unfavorable market-based pricing, and lower volume.
Net loss was ($2.1) million, a decrease of $22.9 million versus the prior year
EBITDA decreased by $30.0 million versus the prior year, impacted by planned plant turnarounds and challenging nylon industry dynamics.
Cash flow from operations decreased by $25.8 million versus the prior year due to lower net income.
AdvanSix expects challenging nylon industry conditions to continue in the near term and a mixed ammonium sulfate fertilizer environment through the 2020 planting season. They anticipate the PES supplier disruption to unfavorably impact pre-tax income by $10 to $15 million in 2020. Capital expenditures are expected to be $90 to $100 million in 2020, and the pre-tax income impact of planned plant turnarounds is projected to be $33 to $38 million.
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