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Jun 30, 2023
Westlake Q2 2023 Earnings Report
Westlake's earnings decreased due to weakness in global manufacturing and industrial activity, and unplanned outages in the PEM segment, while the HIP segment provided earnings stability.
Key Takeaways
Westlake Corporation reported second quarter 2023 net sales of $3.3 billion and net income of $297 million. The HIP segment benefited from a seasonal increase in residential construction demand and lower raw material costs. Soft global manufacturing and industrial activity drove lower PEM sales volumes and average selling prices.
Westlake achieved quarterly net sales of $3.3 billion.
The company's quarterly net income was $297 million.
Westlake's quarterly EBITDA reached $690 million.
HIP segment benefited from a seasonal increase in residential construction demand.
Westlake
Westlake
Forward Guidance
Westlake anticipates focusing on controllable costs and innovation in the PEM segment, while leveraging diverse product offerings in the HIP segment to address homebuyer affordability.
Positive Outlook
- Focus on improving controllable costs in PEM segment.
- Commercializing innovation that addresses customer sustainability challenges.
- Diverse suite of product offerings with varied price points in HIP segment.
- Positioned to help customers address homebuyer affordability concerns through substitution of materials.
- Continue to seek opportunities to redeploy robust free cash flow and solid balance sheet.
Challenges Ahead
- Continuing weakness in global manufacturing and industrial activity.
- No seasonal increase in Performance and Essential Materials demand in the Spring.
- Soft macroeconomic backdrop into the second quarter.
- Unplanned outages driving sequential and year-over-year declines in PEM segment EBITDA.
- Lower average sales prices and integrated margins in Performance Materials.