Element Solutions Inc Issues Statement Regarding Cyber Security Incident

Rhea-AI Summary

Element Solutions Inc (NYSE:ESI) reported a cyber intrusion affecting its IT systems but indicated that the impact is limited. The company has enacted business continuity protocols and engaged cybersecurity experts to manage the situation. Importantly, Element Solutions reassured stakeholders that its outlook for net sales and adjusted EBITDA for 2022 remains unchanged. The company also reconfirmed its full-year 2021 guidance, expecting adjusted EBITDA at or above the midpoint of the previously communicated range.

Positive

• Limited impact from the cyber intrusion on business operations.
• No change to the outlook for net sales or adjusted EBITDA in 2022.
• Reconfirmation of full-year 2021 guidance with expected adjusted EBITDA at or above the midpoint of the guidance range.

Negative

• Potential legal, reputational and financial risks stemming from the cyber incident.
• Concerns over data losses and systems recovery efforts may affect investor confidence.

MIAMI--(BUSINESS WIRE)-- Element Solutions Inc (NYSE:ESI) ("Element Solutions" or “the Company”) today issued the following statement:

Element Solutions recently detected a cyber intrusion on certain of the Company’s information technology systems. Upon detection of the incident, the Company promptly took action to contain it and implement business continuity and data recovery protocols. The Company engaged leading cyber security experts and notified relevant law enforcement authorities as part of its incident response. The impact of this incident is expected to be limited and has not changed the Company’s outlook for net sales or adjusted EBITDA in 2022. For the fiscal year 2021, the Company is reconfirming its previously announced guidance and expects adjusted EBITDA at or above the midpoint of its guidance range.

About Element Solutions Inc

Element Solutions Inc is a leading specialty chemicals company whose businesses formulate a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, these innovative solutions enable customers' manufacturing processes in several key industries, including consumer electronics, power electronics, semiconductor fabrication, communication and data storage infrastructure, automotive systems, industrial surface finishing, consumer packaging and offshore energy. More information about the Company is available at www.elementsolutionsinc.com.

Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the expected impact of the cyber incident; the Company’s unchanged outlook for net sales or adjusted EBITDA in 2022; the reconfirmation of its previously announced full year 2021 guidance; and its expectation for adjusted EBITDA at or above the midpoint of its guidance range. These statements are based on management's estimates and assumptions with respect to future events, and are believed to be reasonable, though are inherently difficult to predict. Actual results could differ materially from those projected as a result of certain factors including, without limitation, the Company’s ability to assess, contain and remedy the cyber intrusion; data losses and systems recovery efforts; misuse or unauthorized disclosure of data; the effectiveness of business continuity plans; and legal, reputational and financial risks resulting from cybersecurity incidents, including, but not limited to, loss of business or investor confidence, litigation, indemnity obligations and significant remediation or other costs not covered by insurance. Additional information concerning factors that could cause actual results to vary can be found in the Company's reports filed with the Securities and Exchange Commission. Element Solutions undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220105005143/en/

Investor Relations Contact:

Varun Gokarn

Senior Director, Strategy and Finance

Element Solutions Inc

1-561-406-8465

IR@elementsolutionsinc.com



Media Contact:

Liz Cohen

Managing Director

Kekst CNC

1-212-521-4845

Source: Element Solutions Inc

FAQ

What cyber incident occurred at Element Solutions (NYSE:ESI)?

Element Solutions detected a cyber intrusion affecting its IT systems.

How has Element Solutions (NYSE:ESI) responded to the cyber intrusion?

The company took immediate action to contain the incident and implemented business continuity and data recovery protocols.

What is the financial outlook for Element Solutions (NYSE:ESI) after the cyber incident?

The company stated that the impact of the cyber intrusion is limited and has not changed its outlook for net sales or adjusted EBITDA in 2022.

Has Element Solutions (NYSE:ESI) altered its guidance for 2021?

No, Element Solutions reconfirmed its previously announced guidance for adjusted EBITDA at or above the midpoint of the range.