Loading...
•
Sep 30, 2024
Westlake Q3 2024 Earnings Report
Westlake's Q3 2024 results were impacted by production outages, but global macroeconomic trends showed modest improvement.
Key Takeaways
Westlake Corporation reported net sales of $3.1 billion, net income of $183 million, and EBITDA of $580 million for the third quarter of 2024, excluding the Identified Item. The results were affected by extended maintenance outages at the ethylene JV facility and one of the chlorovinyl facilities, leading to higher feedstock costs and lower sales volume.
Net sales were $3.1 billion, a 3% decrease compared to the second quarter of 2024.
Net income was $183 million, a decrease of $130 million compared to the second quarter of 2024.
EBITDA was $580 million, a decrease of $102 million compared to the third quarter of 2023.
The company experienced extended maintenance outages at the ethylene JV facility.
Westlake
Westlake
Forward Guidance
The statements in this release and the related teleconference relating to matters that are not historical facts, including statements regarding our outlook for the performance of our business segments, global macroeconomic conditions, continuing stabilization or increases in sales prices, volumes, margins and profitability in both domestic and export markets for most of our products, industrial, manufacturing, residential construction and infrastructure activity in our target markets, our ability to weather economic volatility, raw material costs, higher energy prices, the earnings potential of our assets, monetary and fiscal policies domestically and abroad, the pace and duration of economic recovery, our ability to improve profitability and reliability of our plants, future preventative maintenance activities, our ability to continue to execute our strategies, and our ability to create long-term value for our shareholders are forward-looking statements.
Positive Outlook
- relatively solid and improving conditions in North America
- a continuing recovery in Asia
- slow improvement in Europe
- recent monetary and fiscal stimulus, including actions by the Federal Reserve and the Chinese government, have the potential to accelerate the pace and duration of the macroeconomic recovery.
- focus on levers for growth, including developing and commercializing innovative new products to help our customers address their needs, improving the profitability and reliability of our plants, and redeploying our investment-grade balance sheet to create long-term shareholder value
Challenges Ahead
- general economic and business conditions
- the cyclical nature of the chemical and building products industries
- the availability, cost and volatility of raw materials and energy
- uncertainties associated with the United States, European and worldwide economies, including those due to political tensions and conflict in the Middle East, Russia and Ukraine and elsewhere
- uncertainties associated with pandemic infectious diseases