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Univar reports net loss on taxes, divestiture; sales increase

February 26/2021

MOSCOW (MRC) -- Distributor Univar has reported a fourth-quarter net loss of USD33.7 million, compared with a net loss of USD55.1 million in the year-ago quarter, due mainly to income taxes and a loss on the divestiture of Univars Canadian agriculture services business, said Chemweek.

Net sales fell 5.5% year-on-year (YOY), to USD2.04 billion, on lower demand in industrial end markets and some selling-price deflation. Adjusted earnings totaled $45.2 million, or 27 cents/share, down 10.5% YOY but ahead of analysts consensus estimate of 25 cents/share, as reported by Refinitiv (New York, New York).

Univar expects improving demand in 2021. "Looking to 2021, although the exact timing of the economic recovery is uncertain, our expected full-year Adjusted EBITDA guidance range of USD630 million to USD650 million reflects underlying performance in our on-going businesses above expected general industrial growth levels in each of our regions to offset the expected softer essential end markets performance," says Univar president and CEO David Jukes.

USA segment sales declined 9.5% YOY, to USD1.22 billion, while segment adjusted EBITDA was down 8.5%, to USD302.1 million. The divestiture of Univars environmental services business, as well as lower industrial demand and weakness in the energy market, drove the declines.

EMEA segment sales rose 2.1% YOY, to USD427.8 million, while segment adjusted EBITDA fell 5.5%, to USD29.4 million, chiefly due to lower demand in industrial end markets.

Canada segment sales grew 0.9% YOY, to USD258.5 million, while segment adjusted EBITDA declined 8.4%, to USD20.6 million. The declines were due to lower energy demand, price deflation, and the sale of the agricultural services business.

Latin America segment sales decreased 1.4% YOY, to USD124.2 million, while segment adjusted EBITDA fell 1.9%, to USD10.6 million. The declines were due to negative currency impacts, as demand generally increased.

Univar expects first-quarter 2021 adjusted EBITDA to total USD150-160 million, compared with adjusted EBITDA of USD161.6 million in the first-quarter of 2020.

As MRC wrote previously, in late October, 2020, Univar Solutions Inc. and PVS Chloralkali Inc., a wholly owned subsidiary of PVS Chemicals Inc. (PVS), announced a new agreement where PVS will transfer railcars located in Ohio, Illinois and Virginia and sourcing agreements for Hydrochloric Acid (HCL) to Univar Solutions.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 454,990 tonnes in the first eleven months of 2020, which corresponds to the last year's figure. November estimated consumption of PS and styrene plastics grew by 4% year on year to 45,830 tonnes.

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:PS, EPS, GPPS, styrene, HIPS, Univar, USA.
Category:General News
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