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Platform Specialty Products Corporation announced its financial results for the first quarter ended March 31, 2018.
Chief Executive Officer Rakesh Sachdev said, “Our first quarter results demonstrated strong sales growth bolstered by healthy end-markets, solid execution and a translational currency tailwind. In our Performance Solutions business, net sales grew as our end-markets are generally robust and our teams continue to execute well. In our Ag business, we saw a strong continuation of the season in Brazil and a healthy start of the season in North America and Southern Europe, offset partially by a cold spring in Eastern Europe. In both businesses, we saw margin pressure from product mix and inflation in our raw materials. We have seen the inflationary commodity environment in late 2017 continue into 2018, and our businesses continue to take actions to offset this pressure. We remain confident with respect to our adjusted EBITDA margin expansion goals for 2018."
Mr. Sachdev continued, “Our outlook for the remainder of the year is optimistic given healthy end-markets in our Performance Solutions segment and improving end-markets in Agricultural Solutions. We are reaffirming our full year adjusted EBITDA guidance in the range of $870 million to $900 million in that context.”
“Progress against our separation continues with momentum. We remain committed to this path to create two standalone businesses with terrific market positions, growth trajectories and management teams. Strategically, we believe each of these companies will be better positioned to deliver value to their customers, and we remain confident that our shareholders should benefit from value creation from the separation.”
First quarter 2018 Income Statement Highlights (compared with first quarter 2017):
- Net sales on a reported basis for the first quarter of 2018 were $964 million, an increase of 12%. Organic sales, which exclude the impact of currency changes and certain metal prices, increased 5%.
- MacDermid Performance Solutions (the Performance Solutions segment): net sales increased 10% to $492 million. Organic sales increased 4%.
- Arysta LifeScience (the Agricultural Solutions segment): net sales increased 14% to $472 million. Organic sales increased 6%.
- First quarter 2018 earnings per share performance:
- GAAP diluted earnings per share was $0.13, as compared to a loss of $0.09.
- Adjusted earnings per share was $0.21, an improvement of $0.05 per share.
- Reported net income attributable to common stockholders for the first quarter of 2018 was $37 million, as compared to a net loss of $24 million.
- Adjusted EBITDA for the first quarter of 2018 was $207 million, an increase of 7%. On a constant currency basis, adjusted EBITDA decreased 3%.
- MacDermid Performance Solutions: Adjusted EBITDA was $112 million, an increase of 9%. On a constant currency basis, adjusted EBITDA increased 2%.
- Arysta LifeScience: Adjusted EBITDA was $95 million, an increase of 5%. On a constant currency basis, adjusted EBITDA decreased 8%.
- Adjusted EBITDA margin for the combined company decreased by 90 basis points to 21.5%. On a constant currency basis, adjusted EBITDA margin decreased by 160 basis points.
2018 Guidance Reaffirmed
Platform reaffirms its previously-provided adjusted EBITDA guidance for 2018 in the range of $870 million to $900 million. The mid-point of the guidance represents an increase of 8% over 2017. This guidance for 2018 is based on foreign exchange rates as of March 31, 2018.
Platform is a global and diversified producer of high-technology specialty chemicals and provider of technical services. The business involves the formulation of a broad range of solutions-oriented specialty chemicals, which are sold into multiple industries, including automotive, agriculture, animal health, electronics, graphic arts, and offshore oil and gas production and drilling. More information on Platform is available here.