Platform (NYSE:PAH) reported strong earnings growth for the first quarter. The company generated organic EBITDA growth of 18%, due to revenue growth in both of its businesses and improved cost efficiencies, both at the segment and corporate level. Organic revenue growth was 3%, due to 5% organic growth in Performance Solutions and 2% organic growth in Agricultural Solutions. Performance Solutions showed particular strength this quarter in its industrial and Asian electronics segments, as its end markets have improved and the integration of Alent has helped Platform gain market share. Agricultural Solutions growth was driven by strength in Latin America, but offset somewhat by weakness in Europe due to poor weather.
Performance Solutions organic EBITDA grew 27%, due primarily to further cost synergies from the Alent acquisition and continued cost efficiencies. Agriculture Solutions organic EBITDA grew 8% due primarily to a larger sales mix of higher margin products and cost reductions related to its recently announced $100 million cost savings initiative.
In April, Platform refinanced an additional $1.9 billion of debt reducing its interest costs by 1%. Since last October, the company has refinanced more than $5 billion of debt, lowering the associated interest rate by 1% and extending the maturity on a substantial portion of its debt by three years.
From Bill Ackman (Trades, Portfolio)'s first quarter 2017 shareholder letter.
