Ingevity reports 34.6% increase in third-quarter net income
U.S. specialty chemicals manufacturer Ingevity Corporation has reported strong third-quarter growth in its latest financial results released on 24 October. Third-quarter net sales increased 17.8% to USD311.2 million compared to the previous year’s third quarter, and the company reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of USD90.7 million (compared to USD72.7 million in 2017). The North Charleston, South Carolina-based company also enjoyed a 34.6% increase in net income to USD51.7 million.
Michael Wilson, Ingevity’s president and CEO, says the strong financial performance was anticipated. “We benefitted from demand growth across the board. In addition, our businesses and manufacturing operations are executing according to plan and expectations.” EBITDA growth was attributed to higher volumes, improved price and mix, and lower raw materials and production costs.
Performance Chemicals third-quarter sales grew by USD36.2 million (+20.3%), with segment operating profit up 6.3% to USD39.7 million. Wilson said the successful integration of Georgia-Pacific’s pine chemicals business is “contributing significantly to both the top and bottom lines.” Performance Materials sales in the third quarter rose to USD96.3 million (+12.8%) versus the third quarter of 2017. The segment also delivered a healthy profit increase, up USD7.0 million (+23.9%).
“We drove increased revenues in Performance Materials based on the continued adoption of our ‘honeycomb’ solutions which are used to meet U.S. Environmental Protection Agency (EPA) Tier 3 and California LEV III gasoline vapor emission regulations,” said Wilson. “Our profitability continues to grow as a result of our technology leadership in this application and very strong output and efficiency from our manufacturing facilities.”
Sales to industrial specialties applications increased in the quarter as success in many of key niche applications such as adhesives, dispersants, lubricants, and rubber additives more than offset declines in publication inks, he said.
Wilson expects Ingevity to finish the year strongly and the company has narrowed the range for its fiscal year 2018 guidance to between USD306 million and USD314 million on sales of between USD1.10 billion and USD1.13 billion.