caLogo

MIAMI – Element Solutions reported second quarter Electronics net sales decreased 5% year-over-year to $253 million. Organic net sales decreased 6%.

Electronics adjusted EBITDA was $58 million, down 4%. On a constant currency basis, adjusted EBITDA decreased 1%.

Total net sales were $387 million, a decrease of 15% over the second quarter of 2019. Organic net sales, which exclude the impact of currency changes, certain pass-through metal prices and acquisitions, decreased 15%.

Total net income was $2 million, down 86.7% year-over-year. Adjusted EBITDA was $85 million, a decrease of 16%. On a constant currency basis, adjusted EBITDA decreased 13%.

“Our team at Element Solutions, together with our suppliers and customers, continued to overcome significant hurdles to ensure supply-chain continuity and deliver solutions to our end markets this quarter,” said CEO Benjamin Gliklich. “The pace of adaptation in our business has been remarkable and a testament to our people. We are very thankful for this effort and pleased we have been able to contribute to the fight against the Covid-19 pandemic and support the economic recovery from its impact. That impact was significant in the first half and particularly in the second quarter in our business in Europe and the Americas. Nonetheless, our profit and cash flow exceeded our expectations in the second quarter due to solid execution, resilience in the high-end electronics markets and the quality of our variable cost, asset-light business model. Despite a significant decline in net sales driven by Covid-related supply-chain disruptions, we were able to preserve our adjusted EBITDA margin in the quarter and grow free cash flow year-over-year. We generated $61 million of free cash flow this quarter and $111 million in the first half of this year, which compares to $86 million generated in the first half of 2019 on an adjusted basis.

“In July, we have seen a continuation of the positive trends we experienced in June since the second quarter trough in May. We are cautious about extrapolating the trend from July through the balance of the third quarter given economic uncertainty and the unknowable nature of extended or renewed Covid-19-related supply-chain disruptions or broader economic impacts. In this context, we expect adjusted EBITDA in the third quarter of at least $80 million. If economic conditions improve more robustly, we believe there is upside to this baseline. While we are not comfortable in the current climate to provide full-year adjusted EBITDA guidance, we expect full-year 2020 free cash flow to exceed $185 million.”

For the third quarter, the company expects adjusted EBITDA to be at least $80 million.

Register now for PCB West Virtual 2020, the leading conference and exhibition for the printed circuit board industry, coming this September. pcbwest.com  



Submit to FacebookSubmit to Google PlusSubmit to TwitterSubmit to LinkedInPrint Article
Don't have an account yet? Register Now!

Sign in to your account