Ink World staff12.16.20
Avient Corporation provided estimates on its fourth-quarter financial performance and other business updates.
Pro forma for the acquisition of Clariant Masterbatch, the company noted sales for October and November increased 5.4% over the same months in the prior year.
With the increase in sales experienced so far, the company is increasing its adjusted EPS expectation to $0.48 for the fourth quarter, which compares to its previous adjusted EPS outlook of $0.40 and prior year adjusted EPS of $0.34.
"We expect to achieve record fourth quarter adjusted EPS of approximately $0.48 as recovering demand conditions around the world exceed the traditional seasonality we normally see this time of year. Overall demand is better than we initially estimated in every region of the world, and we are capturing synergies related to our acquisition of Clariant Masterbatch," said Robert M. Patterson, chairman, president and CEO, Avient Corporation.
The company anticipates it will end the year with approximately $600 million in cash, which it intends to use for future bolt-on acquisitions and/or share repurchases, as pro forma net debt to EBITDA leverage is now expected to be approximately 2.8x by year-end.
In December, Avient's Board of Directors approved an increase of 5 million shares available for repurchases, bringing the company's total authorization to approximately 6 million shares.
"In addition, we recently completed our first global Great Place to Work employee engagement survey, inclusive of our newly added associates from Clariant. I am very pleased to report the initial results clearly reflect we are a great place to work," Patterson said. "This has been a multi-year journey for us that reflects the investments we have made in sustainability, advancing diversity and inclusion, and workplace flexibility.
"These results also reflect the strong cultural fit between legacy PolyOne and legacy Clariant Masterbatch associates who have come together to create Avient during an otherwise incredibly challenging year. I am very proud of how we at Avient have taken care of each other and our customers as an essential supplier in the COVID-19 response and recovery effort. We remain very grateful for the work of healthcare professionals, first responders everywhere and those dedicated to helping the world combat and recover from the virus."