Loading...
•
Sep 30, 2022
Element Solutions Q3 2022 Earnings Report
Announced third quarter financial results, revealing flat net sales and increased organic net sales.
Key Takeaways
Element Solutions reported approximately flat net sales of $619 million compared to the third quarter of last year, but organic net sales increased by 5%. GAAP diluted EPS was $0.22, up from $0.15 in the same period last year, and adjusted EPS was $0.36, compared to $0.34 in the prior year. The company reported a net income of $53 million, compared to $36 million in the same period last year. Free cash flow was $116 million, an increase of 42% from the third quarter last year.
Net sales were $619 million, approximately flat year-over-year, with a 5% increase on an organic basis.
GAAP diluted EPS was $0.22, compared to $0.15 in the same period last year; adjusted EPS was $0.36, as compared to $0.34 in the same period last year.
Net income was $53 million, as compared to $36 million in the same period last year.
Free cash flow was $116 million, an increase of 42% from the third quarter last year.
Element Solutions
Element Solutions
Element Solutions Revenue by Segment
Revenue by Segment
Electronics Revenue
CapyFin.comIndustrial & Specialty Revenue
CapyFin.com Forward Guidance
The combination of weak electronics markets, economic stress in Europe and record U.S. dollar strength will drive a greater than typical sequential decline in the fourth quarter. The company updated its financial guidance for adjusted EBITDA in a range of $525 million to $530 million to reflect increased translational foreign exchange headwinds and lowered macro-economic growth assumptions. The Company also now expects full-year 2022 adjusted EPS of $1.40 to $1.42 and free cash flow of approximately $250 million.
Positive Outlook
- Customers remain highly engaged with our commercial and technical teams.
- We have seen an acceleration in interest in several of our newer technology offerings, including products in semiconductor assembly.
- We have seen an acceleration in interest in several of our newer technology offerings, including products in high-end circuit board.
- We have seen an acceleration in interest in several of our newer technology offerings, including products in sustainable industrial surface treatment amongst others.
- The growth opportunities in markets and applications for power electronics, 5G technologies and more sustainable chemistry should be substantial over time.
Challenges Ahead
- Weak electronics markets
- Economic stress in Europe
- Record U.S. dollar strength
- Greater than typical sequential decline in the fourth quarter.
- Increased translational foreign exchange headwinds and lowered macro-economic growth assumptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income