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Dec 31, 2019

Element Solutions Q4 2019 Earnings Report

Element Solutions reported a decrease in net sales but an increase in earnings per share (EPS) for the fourth quarter of 2019.

Key Takeaways

Element Solutions Inc. reported a decrease of 5% in net sales for Q4 2019 compared to Q4 2018, with sales totaling $455 million. However, the company's GAAP diluted earnings per share increased to $0.29, compared to a loss per share of $0.05 in the same period last year. Adjusted EPS was $0.22, compared to $0.03 per share.

Net sales decreased by 5% to $455 million, with organic net sales down 4%.

GAAP diluted earnings per share was $0.29, compared to a loss per share of $0.05 in the same period last year.

Adjusted EPS was $0.22, compared to $0.03 per share.

Reported net income was $74 million, compared to a loss of $14 million for the fourth quarter of 2018.

Total Revenue
$455M
Previous year: $478M
-5.0%
EPS
$0.22
Previous year: $0.02
+1000.0%
Electronics Organic Growth
-4%
Previous year: -3%
+33.3%
Total Organic Sales Growth
-4%
Previous year: -4%
+0.0%
Gross Profit
$191M
Previous year: $202M
-5.4%
Cash and Equivalents
$190M
Previous year: $234M
-18.6%
Total Assets
$4.32B
Previous year: $9.4B
-54.0%

Element Solutions

Element Solutions

Element Solutions Revenue by Segment

Forward Guidance

For the full year 2020, the Company expects adjusted EPS to be in the range of $0.93 to $0.97, adjusted EBITDA growth of between 2% and 4% on a constant currency basis and organic net sales growth of approximately 1%.

Positive Outlook

  • Adjusted EPS to be in the range of $0.93 to $0.97.
  • Adjusted EBITDA growth of between 2% and 4% on a constant currency basis.
  • Organic net sales growth of approximately 1%.

Challenges Ahead

  • Foreign exchange headwinds of approximately 1% to net sales.
  • Foreign exchange headwinds of approximately 1% to adjusted EBITDA.
  • The coronavirus has clearly impacted our business this February, but we have all of our factories open, albeit at low levels of activity
  • The unquantifiable impact of the coronavirus today
  • will review as and when the ultimate impact of coronavirus-related supply chain disruptions is known.

Revenue & Expenses

Visualization of income flow from segment revenue to net income