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Univar Q3 net income slumps

November 06/2019

MOSCOW (MRC) -- Univar Solutions Inc., a global chemical and ingredient distributor and provider of value-added services, announced its financial results for the third quarter ended September 30, 2019, said the company.

Earnings per diluted share of USD0.01, compared to USD0.35 per diluted share, in the prior year third quarter. The current quarter increase from the addition of Nexeo's earnings and better operating performance was more than offset by the impact of taxes (USD0.18), costs to integrate Nexeo ($0.07), and non-cash charges (USD0.05).

 Adjusted earnings per diluted share of USD0.36 compared to $0.40 in the prior year third quarter. 

Adjusted EBITDA grew 17.3 percent to USD184.2 million, and Adjusted EBITDA margin expanded 30 basis points to 7.7 percent from the prior year.

Net cash provided by operating activities increased to USD214.7 million from USD46.4 million, compared to third quarter last year, driven by lower net working capital as well as improved net working capital efficiency.

Net debt decreased USD165.4 million from the second quarter and leverage ratio of 3.9x decreased from 4.1x at June 30, 2019.

Full year outlook for Adjusted EBITDA revised to a range of USD700 million to USD725 million from the previous estimate of USD725 million to USD740 million, as increased earnings from legacy Nexeo and synergies are partially offset by further contraction of global industrial market demand for chemicals and ingredients.

Company growth from improved operating performance and the acquisition of Nexeo is being challenged by the global manufacturing slowdown, which has challenged company assumptions that industrial demand for chemicals and ingredients would be steady overall from 2018.

As MRC informed earlier, Univar Inc., a global chemical and ingredient distributor and provider of value-added services, announced its Board of Directors has approved a Certificate of Amendment of the Certificate of Incorporation of the Company, to officially change the corporate name from Univar Inc. to Univar Solutions Inc., effective September 1, 2019.

It was earlier also written, Univar Inc., a global chemical and ingredient distributor and provider of value-added services has announced the expansion of their agreement with BASF to include the Care Chemicals business for the US Home, Industrial & Institutional, as well as Vehicle Care product lines.

As MRC informed earlier, BASF would expand the capacity of ethylene oxide and ethylene oxide derivatives at its Verbund site in Antwerp, Belgium. The total investment adds about 400 000 tpy to BASFs production capacity for the corresponding products with an expected investment amount exceeding EUR500 million.

Ethylene is a feedstock for producing polyethylene (PE).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased.

Univar Solutions is a leading global chemical and ingredient distributor and provider of value added services to customers across a wide range of industries. With the industry's largest private transportation fleet and North American sales force, a vast supplier network, deep market and regulatory knowledge, world-class formulation and recipe development, unparalleled logistics know-how, and industry-leading digital tools, Univar Solutions is a committed ally to customers and suppliers, helping them anticipate, navigate, and leverage meaningful growth opportunities.
Author:Anna Larionova
Tags:petroleum products, PP, PE, petrochemistry, BASF, Univar.
Category:General News
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