Avient Corp (AVNT, Financial), a leading provider of specialized and sustainable material solutions, announced its third quarter 2023 results on November 2, 2023. The company reported third quarter sales of $754 million, a decrease from $823 million in the prior year. Third quarter GAAP and adjusted earnings per share (EPS) were $0.06 and $0.57, respectively, compared to ($0.30) and $0.59 in the prior year.
Financial Performance and Challenges
The company's GAAP EPS includes $0.35 of special items primarily related to an adjustment to environmental reserves and $0.16 of intangible amortization expense. Despite lower than projected sales, the adjusted EPS of $0.57 was slightly ahead of the company's guidance of $0.56. This was attributed to lower depreciation expense, related to prior restructuring actions, and reduced interest expense.
Avient Corp (AVNT, Financial) noted that certain end markets such as energy, transportation, and defense performed relatively well during the third quarter. However, demand in most other markets remained weak compared to the prior year. The company also updated its full year sales and adjusted EPS guidance to $3.13 billion and $2.30, respectively, to reflect current projections and weaker foreign exchange.
Debt Reduction and Dividend Increase
During the third quarter, Avient Corp (AVNT, Financial) paid down $100 million of debt and refinanced its Term Loan, reducing the interest rate and extending certain maturities from 2026 to 2029. This will result in $10 million of annual interest expense savings. The company also increased its dividend for the thirteenth consecutive year, reflecting confidence in its ability to deliver consistent free cash flow and drive long-term earnings growth.
Financial Tables Summary
According to the Condensed Consolidated Statements of Income, Avient Corp (AVNT, Financial) reported net income from continuing operations attributable to Avient shareholders of $5.1 million for the third quarter of 2023, compared to a loss of $27.4 million in the prior year. The company's total sales for the first nine months of 2023 amounted to $2,423.8 million, compared to $2,606.5 million in 2022.
The Condensed Consolidated Balance Sheets show that as of September 30, 2023, the company had total assets of $5,789.7 million and total liabilities of $3,493.8 million. The company's total equity stood at $2,295.9 million.
Avient Corp (AVNT, Financial) will share further information regarding third quarter results and full-year guidance during its previously scheduled webcast at 8:00 a.m. Eastern Time on November 2, 2023.
Explore the complete 8-K earnings release (here) from Avient Corp for further details.
