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Westlake Corporation Reports Second Quarter 2023 Results

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Westlake Corporation announces second quarter 2023 results with net sales of $3.3 billion, net income of $297 million, and EBITDA of $690 million. Performance and Essential Materials segment sees a decline in sales volumes and average selling prices, while Housing and Infrastructure Products segment shows sequential volume growth. Overall, net sales, net income, and EBITDA decrease compared to the first quarter of 2023.
Positive
  • Performance and Essential Materials segment experiences a decrease in sales volumes and average selling prices.
  • Housing and Infrastructure Products segment shows sequential volume growth.
  • Net sales, net income, and EBITDA decrease compared to the first quarter of 2023.
Negative
  • Performance and Essential Materials segment's operating margin and EBITDA margin decline.
  • Overall sales prices for the Company decrease sequentially and year-over-year.
  • PEM's EBITDA margin decreases significantly compared to the second quarter of 2022.
  • Housing and Infrastructure Products segment provided earnings stability
  • Cash from operations of $555 million and free cash flow of $315 million

HOUSTON--(BUSINESS WIRE)-- Westlake Corporation (NYSE: WLK) (the "Company" or "Westlake") today announced second quarter 2023 results.

SUMMARY FINANCIAL HIGHLIGHTS ($ in millions except per share data)

 

 

Three Months
Ended June 30,
2023

 

Three Months
Ended March 31,
2023

 

Three Months
Ended June 30,
2022

 

 

 

 

 

 

 

 

 

 

Westlake Corporation

 

 

 

 

 

 

 

 

 

Net sales

 

$

3,251

 

 

$

3,356

 

 

$

4,483

 

Income from operations

 

$

396

 

 

$

536

 

 

$

1,175

 

Operating income margin

 

 

12%

 

 

 

16%

 

 

 

26%

 

Net income attributable to Westlake Corporation

 

$

297

 

 

$

394

 

 

$

858

 

Diluted earnings per common share

 

$

2.31

 

 

$

3.05

 

 

$

6.60

 

EBITDA

 

$

690

 

 

$

825

 

 

$

1,456

 

EBITDA margin

 

 

21%

 

 

 

25%

 

 

 

32%

 

 

 

 

 

 

 

 

 

 

 

Performance and Essential Materials ("PEM") Segment

 

 

 

 

 

 

 

 

 

Net sales

 

$

2,136

 

 

$

2,349

 

 

$

3,104

 

Income from operations

 

$

215

 

 

$

403

 

 

$

965

 

Operating income margin

 

 

10%

 

 

 

17%

 

 

 

31%

 

EBITDA

 

$

435

 

 

$

615

 

 

$

1,162

 

EBITDA margin

 

 

20%

 

 

 

26%

 

 

 

37%

 

 

 

 

 

 

 

 

 

 

 

Housing and Infrastructure Products ("HIP") Segment

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,115

 

 

$

1,007

 

 

$

1,379

 

Income from operations

 

$

190

 

 

$

143

 

 

$

236

 

Operating income margin

 

 

17%

 

 

 

14%

 

 

 

17%

 

EBITDA

 

$

244

 

 

$

205

 

 

$

310

 

EBITDA margin

 

 

22%

 

 

 

20%

 

 

 

22%

 

BUSINESS HIGHLIGHTS

In the second quarter of 2023, Westlake achieved quarterly net sales of $3.3 billion, quarterly net income of $297 million and quarterly EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of $690 million. Compared to the first quarter of 2023, our HIP segment benefited from a seasonal increase in residential construction demand and lower raw material costs that more than offset lower average selling prices. Infrastructure Products and Housing Products contributed to the HIP segment sequential volume growth helping to improve segment results. Meanwhile, soft global manufacturing and industrial activity drove lower PEM sales volumes and average selling prices, particularly for caustic soda and epoxy. PEM operating income and EBITDA were also impacted by unplanned outages. Overall, the improvement in HIP results were insufficient to offset the declines in PEM performance, resulting in lower net sales, net income and EBITDA compared to the first quarter of 2023.

Performance and Essential Materials average sales prices decreased 6% while Housing and Infrastructure Products average sales prices decreased 2% from the first quarter of 2023. Overall sales prices for the Company decreased 4% sequentially from the previous quarter. When compared to the second quarter of 2022, PEM average selling prices decreased 21% while HIP average selling prices were down slightly resulting in a 15% overall sales price decline for the Company.

Sales volumes for Performance and Essential Materials decreased 4% while Housing and Infrastructure Products sales volumes increased 13% from the first quarter of 2023. Overall sales volumes for the Company increased 1% sequentially from the previous quarter. When compared to the second quarter of 2022, PEM sales volumes decreased 10% while HIP sales volumes decreased 18% resulting in a 13% overall sales volume decline for the Company.

In the second quarter of 2023, PEM's EBITDA margin decreased to 20% from 26% in the first quarter of 2023 while HIP's EBITDA margin increased to 22% from 20% over the same period of time. When compared to the second quarter of 2022, PEM's EBITDA margin decreased to 20% from 37% while HIP's EBITDA margin was unchanged at 22%.

EXECUTIVE COMMENTARY

"Our second quarter of 2023 results reflected the continuing weakness in global manufacturing and industrial activity that began in the second half of 2022. We did not see a seasonal increase in Performance and Essential Materials demand in the Spring, which led to a continuation of the soft macroeconomic backdrop into the second quarter that combined with unplanned outages which drove sequential and year-over-year declines in our PEM segment EBITDA. Results in our HIP segment, while lower than the all-time record second quarter of 2022, provided stability to our overall earnings with sales volumes, operating income and EBITDA all improving from the first quarter of 2023 levels. The sequential sales volume improvement was widespread across Infrastructure Products and Housing Products," said Albert Chao, President and Chief Executive Officer.

"Looking ahead to the remainder of 2023, in our PEM segment we will focus on improving controllable costs and commercializing innovation that addresses customer sustainability challenges so that we will be well-positioned as market conditions improve. Meanwhile, in our HIP segment we believe that our diverse suite of product offerings with varied price points position us well to help our customers address homebuyer affordability concerns through substitution of materials. Finally, we continue to seek opportunities to redeploy our robust free cash flow and solid balance sheet in ways that enhance shareholder value."

RESULTS

Consolidated Results

For the three months ended June 30, 2023, the Company reported quarterly net income of $297 million, or $2.31 per share, on net sales of $3,251 million. The year-over-year decrease in net income of $561 million from the second quarter of 2022 was primarily due to lower average sales prices and integrated margins in Performance Materials and lower operating rates and sales volumes across almost all product categories. These factors were only partially offset by higher Essential Materials average sales prices.

Second quarter 2023 net income of $297 million decreased by $97 million compared to the first quarter of 2023. The sequential decrease in net income compared to the prior quarter was primarily due to lower average sales prices and margins in our PEM segment, which was only partially offset by higher sales volumes in our HIP segment.

EBITDA of $690 million for the second quarter of 2023 decreased by $766 million compared to second quarter 2022 EBITDA of $1,456 million. Second quarter 2023 EBITDA decreased by $135 million compared to first quarter 2023 EBITDA of $825 million. A reconciliation of EBITDA to net income, income from operations, and net cash provided by operating activities can be found in the financial schedules at the end of this press release.

Cash and Debt

Net cash provided by operating activities was $555 million for the second quarter of 2023. As of June 30, 2023, cash and cash equivalents were $2,677 million and total debt was $4,894 million. Capital expenditures in the second quarter of 2023 were $240 million. For the second quarter of 2023, free cash flow (net cash provided by operating activities less capital expenditures) was $315 million, a decrease of $368 million as compared to the second quarter of 2022, primarily due to lower net income. A reconciliation of free cash flow to net cash flow provided by operating activities can be found in the financial schedules at the end of this press release.

Performance and Essential Materials Segment

Performance and Essential Materials income from operations for the second quarter of 2023 of $215 million decreased by $750 million from second quarter 2022 income from operations of $965 million. This decrease in income from operations versus the prior-year period was due to lower polyethylene and PVC resin average selling prices and integrated margins, as well as lower operating rates and sales volumes, particularly for epoxy, which were only partially offset by higher caustic soda average selling prices and lower feedstock and energy costs. As a result, PEM's segment operating margin declined from 31% in the second quarter of 2022 to 10% in the second quarter of 2023 and EBITDA margin decreased from 37% in the second quarter of 2022 to 20% in the second quarter of 2023.

Sequentially, Performance and Essential Materials income from operations decreased by $188 million as compared to the first quarter of 2023. The sequential decrease was largely due to unplanned outages, lower average selling prices for caustic soda and lower global operating rates and sales volumes for PVC resin and epoxy, which were only partially offset by increased sales volume of polyethylene and chlorine.

Housing and Infrastructure Products Segment

For the second quarter of 2023, Housing and Infrastructure Products income from operations of $190 million decreased by $46 million from second quarter 2022 income from operations of $236 million. This decrease in income from operations versus the prior-year period was the result of lower sales volumes, particularly in Infrastructure Products. Despite the 18% volume decline compared to the prior-year period, HIP's segment operating margin of 17% and EBITDA margin of 22% in the second quarter of 2023 were in line with the second quarter of 2022 as lower raw material costs and sales mix shift to repair & remodel offset unabsorbed fixed costs and lower average selling prices.

Sequentially, Housing and Infrastructure Products income from operations increased by $47 million as compared to the first quarter of 2023. This increase in income from operations versus the prior quarter was the result of seasonally higher sales volume, lower raw material costs and the strong value of our branded products.

Forward-Looking Statements

The statements in this release and the related teleconference relating to matters that are not historical facts, including statements regarding our outlook for the performance of our business segments (such as product rates), macro demand conditions, our attempts to improve controllable costs, commercialize innovation and address customer sustainability challenges, our belief that our product offerings will allow customers to address homebuyer affordability concerns through substitution of materials, and our ability to deploy free cash flow and to enhance shareholder value are forward-looking statements. These forward-looking statements are subject to significant risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to: the COVID-19 pandemic and the response thereto; general economic and business conditions; the cyclical nature of the industry; availability, cost and volatility of raw materials and utilities, including natural gas and natural gas liquids from shale production; the price of crude oil; uncertainties associated with the United States and worldwide economies, including those due to global economic and financial conditions; governmental regulatory actions, including environmental regulation and changes in trade policies; political unrest; industry production capacity and operating rates; the supply/demand balance for Westlake's products; competitive products and pricing pressures; access to capital markets; technological developments; the effect and results of litigation and settlements of litigation; operating interruptions; the ability to integrate recent acquisitions; the diversion of management time on transaction-related issues; and other risk factors. For more detailed information about the factors that could cause actual results to differ materially, please refer to Westlake's Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC in February 2023, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, which was filed with the SEC in May 2023.

Use of Non-GAAP Financial Measures

This release makes reference to certain "non-GAAP" financial measures, such as EBITDA and free cash flow, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. For this purpose, a non-GAAP financial measure is generally defined by the Securities and Exchange Commission ("SEC") as a numerical measure of a registrant's historical or future financial performance, financial position or cash flows that (1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the registrant; or (2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. We report our financial results in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), but believe that certain non-GAAP financial measures, such as EBITDA and free cash flow, provide useful supplemental information to investors regarding the underlying business trends and performance of the Company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with U.S. GAAP. A reconciliation of (i) EBITDA to net income, income from operations and net cash provided by operating activities and (ii) free cash flow to net cash provided by operating activities can be found in the financial schedules at the end of this press release.

About Westlake

Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, with operations in Asia, Europe and North America, we provide the building blocks for vital solutions — from housing and construction, to packaging and healthcare, to automotive and consumer. For more information, visit the company's web site at www.westlake.com.

Westlake Corporation Conference Call Information:

A conference call to discuss Westlake Corporation's second quarter 2023 results will be held Thursday, August 3, 2023 at 11:00 AM Eastern Time (10:00 AM Central Time). To access the conference call, it is necessary to pre-register at https://register.vevent.com/register/BI54f3177dd32545529addfd538d503bd8. Once registered, you will receive a phone number and unique PIN number.

A replay of the conference call will be available beginning two hours after its conclusion. The conference call and replay will be available via webcast at https://edge.media-server.com/mmc/p/qupkib59.

WESTLAKE CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

(In millions of dollars, except per share data and share amounts)

Net sales

 

$

3,251

 

 

$

4,483

 

 

$

6,607

 

 

$

8,539

 

Cost of sales

 

 

2,609

 

 

 

3,038

 

 

 

5,173

 

 

 

5,809

 

Gross profit

 

 

642

 

 

 

1,445

 

 

 

1,434

 

 

 

2,730

 

Selling, general and administrative expenses

 

 

213

 

 

 

220

 

 

 

435

 

 

 

420

 

Amortization of intangibles

 

 

30

 

 

 

43

 

 

 

61

 

 

 

85

 

Restructuring, transaction and integration-related costs

 

 

3

 

 

 

7

 

 

 

6

 

 

 

18

 

Income from operations

 

 

396

 

 

 

1,175

 

 

 

932

 

 

 

2,207

 

Interest expense

 

 

(42

)

 

 

(44

)

 

 

(84

)

 

 

(90

)

Other income, net

 

 

23

 

 

 

17

 

 

 

45

 

 

 

28

 

Income before income taxes

 

 

377

 

 

 

1,148

 

 

 

893

 

 

 

2,145

 

Provision for income taxes

 

 

70

 

 

 

275

 

 

 

179

 

 

 

508

 

Net income

 

 

307

 

 

 

873

 

 

 

714

 

 

 

1,637

 

Net income attributable to noncontrolling interests

 

 

10

 

 

 

15

 

 

 

23

 

 

 

23

 

Net income attributable to Westlake Corporation

 

$

297

 

 

$

858

 

 

$

691

 

 

$

1,614

 

Earnings per common share attributable to Westlake Corporation:

 

 

 

 

 

 

 

 

Basic

 

$

2.32

 

 

$

6.65

 

 

$

5.39

 

 

$

12.52

 

Diluted

 

$

2.31

 

 

$

6.60

 

 

$

5.35

 

 

$

12.43

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

127,649,341

 

 

 

128,341,132

 

 

 

127,599,093

 

 

 

128,206,988

 

Diluted

 

 

128,484,016

 

 

 

129,341,096

 

 

 

128,471,760

 

 

 

129,134,246

 

WESTLAKE CORPORATION

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

June 30,
2023

 

December 31,
2022

 

 

 

 

 

 

 

(In millions of dollars)

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,677

 

 

$

2,228

Accounts receivable, net

 

 

1,855

 

 

 

1,801

Inventories

 

 

1,671

 

 

 

1,866

Prepaid expenses and other current assets

 

 

93

 

 

 

78

Total current assets

 

 

6,296

 

 

 

5,973

Property, plant and equipment, net

 

 

8,550

 

 

 

8,525

Other assets, net

 

 

6,135

 

 

 

6,052

Total assets

 

$

20,981

 

 

$

20,550

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities (accounts payable and accrued and other liabilities)

 

$

2,131

 

 

$

2,298

 

Long-term debt, net

 

 

4,894

 

 

 

4,879

Other liabilities

 

 

2,879

 

 

 

2,908

 

Total liabilities

 

 

9,904

 

 

 

10,085

Total Westlake Corporation stockholders' equity

 

 

10,544

 

 

 

9,931

Noncontrolling interests

 

 

533

 

 

 

534

Total equity

 

 

11,077

 

 

 

10,465

Total liabilities and equity

 

$

20,981

 

 

$

20,550

WESTLAKE CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

2023

 

2022

 

 

 

 

 

 

 

(In millions of dollars)

Cash flows from operating activities

 

 

 

 

Net income

 

$

714

 

 

$

1,637

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

538

 

 

 

521

 

Deferred income taxes

 

 

(51

)

 

 

81

 

Net loss on disposition and others

 

 

22

 

 

 

52

 

Other balance sheet changes

 

 

(156

)

 

 

(678

)

Net cash provided by operating activities

 

 

1,067

 

 

 

1,613

 

Cash flows from investing activities

 

 

 

 

Acquisition of business, net of cash acquired

 

 

 

 

 

(1,163

)

Additions to investments in unconsolidated subsidiaries

 

 

(2

)

 

 

(156

)

Additions to property, plant and equipment

 

 

(507

)

 

 

(493

)

Other, net

 

 

10

 

 

 

9

 

Net cash used for investing activities

 

 

(499

)

 

 

(1,803

)

Cash flows from financing activities

 

 

 

 

Distributions to noncontrolling interests

 

 

(24

)

 

 

(24

)

Dividends paid

 

 

(92

)

 

 

(77

)

Repayment of senior notes

 

 

 

 

 

(250

)

Repurchase of common stock for treasury

 

 

(23

)

 

 

(31

)

Other, net

 

 

8

 

 

 

5

 

Net cash used for financing activities

 

 

(131

)

 

 

(377

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

9

 

 

 

(30

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

446

 

 

 

(597

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

2,246

 

 

 

1,941

 

Cash, cash equivalents and restricted cash at end of period

 

$

2,692

 

 

$

1,344

 

WESTLAKE CORPORATION

 

SEGMENT INFORMATION

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

(In millions of dollars)

Net external sales

 

 

 

 

 

 

 

 

Performance and Essential Materials

 

 

 

 

 

 

 

 

Performance Materials

 

$

1,140

 

 

$

2,060

 

 

$

2,422

 

 

$

3,989

 

Essential Materials

 

 

996

 

 

 

1,044

 

 

 

2,063

 

 

 

1,947

 

Total Performance and Essential Materials

 

 

2,136

 

 

 

3,104

 

 

 

4,485

 

 

 

5,936

 

Housing and Infrastructure Products

 

 

 

 

 

 

 

 

Housing Products

 

 

918

 

 

 

1,116

 

 

 

1,736

 

 

 

2,088

 

Infrastructure Products

 

 

197

 

 

 

263

 

 

 

386

 

 

 

515

 

Total Housing and Infrastructure Products

 

 

1,115

 

 

 

1,379

 

 

 

2,122

 

 

 

2,603

 

 

 

$

3,251

 

 

$

4,483

 

 

$

6,607

 

 

$

8,539

 

Income (loss) from operations

 

 

 

 

 

 

 

 

Performance and Essential Materials

 

$

215

 

 

$

965

 

 

$

618

 

 

$

1,844

 

Housing and Infrastructure Products

 

 

190

 

 

 

236

 

 

 

333

 

 

 

421

 

Corporate and other

 

 

(9

)

 

 

(26

)

 

 

(19

)

 

 

(58

)

 

 

$

396

 

 

$

1,175

 

 

$

932

 

 

$

2,207

 

Depreciation and amortization

 

 

 

 

 

 

 

 

Performance and Essential Materials

 

$

217

 

 

$

192

 

 

$

427

 

 

$

376

 

Housing and Infrastructure Products

 

 

51

 

 

 

70

 

 

 

106

 

 

 

141

 

Corporate and other

 

 

3

 

 

 

2

 

 

 

5

 

 

 

4

 

 

 

$

271

 

 

$

264

 

 

$

538

 

 

$

521

 

Other income, net

 

 

 

 

 

 

 

 

Performance and Essential Materials

 

$

3

 

 

$

5

 

 

$

5

 

 

$

13

 

Housing and Infrastructure Products

 

 

3

 

 

 

4

 

 

 

10

 

 

 

6

 

Corporate and other

 

 

17

 

 

 

8

 

 

 

30

 

 

 

9

 

 

 

$

23

 

 

$

17

 

 

$

45

 

 

$

28

 

WESTLAKE CORPORATION

 

RECONCILIATION OF EBITDA TO NET INCOME, INCOME FROM OPERATIONS AND

NET CASH PROVIDED BY OPERATING ACTIVITIES

(Unaudited)

 

 

 

Three Months
Ended March 31,

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions of dollars, except percentages)

Net cash provided by operating activities

 

$

512

 

 

$

555

 

 

$

913

 

 

$

1,067

 

 

$

1,613

 

Changes in operating assets and liabilities and other

 

 

(121

)

 

 

(283

)

 

 

(1

)

 

 

(404

)

 

 

105

 

Deferred income taxes

 

 

16

 

 

 

35

 

 

 

(39

)

 

 

51

 

 

 

(81

)

Net income

 

 

407

 

 

 

307

 

 

 

873

 

 

 

714

 

 

 

1,637

 

Less:

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

22

 

 

 

23

 

 

 

17

 

 

 

45

 

 

 

28

 

Interest expense

 

 

(42

)

 

 

(42

)

 

 

(44

)

 

 

(84

)

 

 

(90

)

Provision for income taxes

 

 

(109

)

 

 

(70

)

 

 

(275

)

 

 

(179

)

 

 

(508

)

Income from operations

 

 

536

 

 

 

396

 

 

 

1,175

 

 

 

932

 

 

 

2,207

 

Add:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

267

 

 

 

271

 

 

 

264

 

 

 

538

 

 

 

521

 

Other income, net

 

 

22

 

 

 

23

 

 

 

17

 

 

 

45

 

 

 

28

 

EBITDA

 

$

825

 

 

$

690

 

 

$

1,456

 

 

$

1,515

 

 

$

2,756

 

Net external sales

 

$

3,356

 

 

$

3,251

 

 

$

4,483

 

 

$

6,607

 

 

$

8,539

 

Operating Income Margin

 

 

16%

 

 

12%

 

 

26%

 

 

14%

 

 

26%

EBITDA Margin

 

 

25%

 

 

21%

 

 

32%

 

 

23%

 

 

32%

RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES

(Unaudited)

 

 

 

Three Months
Ended March 31,

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions of dollars)

Net cash provided by operating activities

 

$

512

 

 

$

555

 

 

$

913

 

 

$

1,067

 

 

$

1,613

 

Less:

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

(267

)

 

 

(240

)

 

$

(230

)

 

 

(507

)

 

 

(493

)

Free Cash Flow

 

$

245

 

 

$

315

 

 

$

683

 

 

$

560

 

 

$

1,120

 

WESTLAKE CORPORATION

 

RECONCILIATION OF SEGMENT EBITDA TO INCOME FROM OPERATIONS

(Unaudited)

 

 

Three Months
Ended March 31,

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

2023

 

2022

 

2023

 

2022

 

 

 

(In millions of dollars, except percentages)

 

Performance and Essential Materials Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

403

 

 

$

215

 

 

$

965

 

 

$

618

 

 

$

1,844

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

210

 

 

 

217

 

 

 

192

 

 

 

427

 

 

 

376

 

Other income, net

 

 

2

 

 

 

3

 

 

 

5

 

 

 

5

 

 

 

13

 

EBITDA

 

$

615

 

 

$

435

 

 

$

1,162

 

 

$

1,050

 

 

$

2,233

 

Net external sales

 

$

2,349

 

 

$

2,136

 

 

$

3,104

 

 

$

4,485

 

 

$

5,936

 

Operating Income Margin

 

 

17%

 

 

 

10%

 

 

 

31%

 

 

 

14%

 

 

 

31%

 

EBITDA Margin

 

 

26%

 

 

 

20%

 

 

 

37%

 

 

 

23%

 

 

 

38%

 

 

 

Three Months
Ended March 31,

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

2023

 

2022

 

2023

 

2022

 

 

 

(In millions of dollars, except percentages)

 

Housing and Infrastructure Products Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

143

 

 

$

190

 

 

$

236

 

 

$

333

 

 

$

421

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

55

 

 

 

51

 

 

 

70

 

 

 

106

 

 

 

141

 

Other income, net

 

 

7

 

 

 

3

 

 

 

4

 

 

 

10

 

 

 

6

 

EBITDA

 

$

205

 

 

$

244

 

 

$

310

 

 

$

449

 

 

$

568

 

Net external sales

 

$

1,007

 

 

$

1,115

 

 

$

1,379

 

 

$

2,122

 

 

$

2,603

 

Operating Income Margin

 

 

14%

 

 

 

17%

 

 

 

17%

 

 

 

16%

 

 

 

16%

 

EBITDA Margin

 

 

20%

 

 

 

22%

 

 

 

22%

 

 

 

21%

 

 

 

22%

 

WESTLAKE CORPORATION

 

SUPPLEMENTAL INFORMATION

 

NET SALES PERCENTAGE CHANGE DUE TO AVERAGE SALES PRICE AND VOLUME

(Unaudited)

     

 

 

Second Quarter 2023 vs. Second
Quarter 2022

 

Second Quarter 2023 vs. First
Quarter 2023

 

 

Average
Sales Price

 

Volume

 

Average
Sales Price

 

Volume

Performance and Essential Materials

 

-21%

 

 

-10%

 

 

-6%

 

 

-4%

 

Housing and Infrastructure Products

 

-1%

 

 

-18%

 

 

-2%

 

 

+13%

 

Company

 

-15%

 

 

-13%

 

 

-4%

 

 

+1%

 

 

Contact—(713) 960-9111

Investors—Steve Bender

Media—L. Benjamin Ederington

Source: Westlake Corporation

FAQ

What are Westlake Corporation's second quarter 2023 net sales?

Westlake Corporation's second quarter 2023 net sales were $3.3 billion.

What is the net income of Westlake Corporation for the second quarter of 2023?

Westlake Corporation's net income for the second quarter of 2023 is $297 million.

What is the EBITDA of Westlake Corporation for the second quarter of 2023?

Westlake Corporation's EBITDA for the second quarter of 2023 is $690 million.

How did the Performance and Essential Materials segment perform in the second quarter of 2023?

The Performance and Essential Materials segment experienced a decrease in sales volumes and average selling prices in the second quarter of 2023.

How did the Housing and Infrastructure Products segment perform in the second quarter of 2023?

The Housing and Infrastructure Products segment showed sequential volume growth in the second quarter of 2023.

Did Westlake Corporation's net sales, net income, and EBITDA increase or decrease compared to the first quarter of 2023?

Westlake Corporation's net sales, net income, and EBITDA decreased compared to the first quarter of 2023.

Westlake Corporation

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