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Westlake Corporation Reports Third Quarter 2024 Results

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Westlake (WLK) reported third quarter 2024 results with net sales of $3.1 billion, net income of $183 million (excluding identified item), and EBITDA of $580 million. The quarter was impacted by extended maintenance outages at ethylene JV and chlorovinyl facilities. Sales declined 3% compared to Q2 2024, with a 4% decrease in volume and 1% increase in average sales price.

The company accrued $75 million in mothball expenses related to two units in European epoxy business. Performance and Essential Materials (PEM) segment reported sales of $2.0 billion, while Housing and Infrastructure Products (HIP) segment recorded sales of $1.1 billion. The company ended the quarter with $2.9 billion in cash and $4.6 billion in total debt.

Westlake (WLK) ha riportato i risultati del terzo trimestre del 2024, con vendite nette di 3,1 miliardi di dollari, un reddito netto di 183 milioni di dollari (escludendo voci identificate) e un EBITDA di 580 milioni di dollari. Il trimestre è stato influenzato da prolungate interruzioni per manutenzione nelle joint venture di etilene e nelle strutture di clorovinile. Le vendite sono diminuite del 3% rispetto al secondo trimestre del 2024, con una diminuzione del 4% in volume e un aumento del 1% nel prezzo medio di vendita.

La società ha accantonato 75 milioni di dollari per spese di inattività relative a due unità del business di resine epossidiche in Europa. Il segmento Performance and Essential Materials (PEM) ha riportato vendite di 2,0 miliardi di dollari, mentre il segmento Housing and Infrastructure Products (HIP) ha registrato vendite di 1,1 miliardi di dollari. La società ha chiuso il trimestre con 2,9 miliardi di dollari in liquidità e 4,6 miliardi di dollari di debito totale.

Westlake (WLK) reportó los resultados del tercer trimestre de 2024, con ventas netas de 3.1 mil millones de dólares, un ingreso neto de 183 millones de dólares (excluyendo ítems identificados) y un EBITDA de 580 millones de dólares. El trimestre se vio afectado por paradas de mantenimiento prolongadas en las joint ventures de etileno y en las instalaciones de cloruro de polivinilo. Las ventas disminuyeron un 3% en comparación con el segundo trimestre de 2024, con una disminución del 4% en volumen y un aumento del 1% en el precio promedio de venta.

La compañía acumuló 75 millones de dólares en gastos de inactividad relacionados con dos unidades en el negocio de epoxi en Europa. El segmento de Materiales de Rendimiento y Esenciales (PEM) reportó ventas de 2.0 mil millones de dólares, mientras que el segmento de Productos de Vivienda e Infraestructura (HIP) registró ventas de 1.1 mil millones de dólares. La compañía terminó el trimestre con 2.9 mil millones de dólares en efectivo y 4.6 mil millones de dólares en deuda total.

Westlake (WLK)는 2024년 3분기 실적을 보고했으며, 순매출 31억 달러, 순이익 1억 8300만 달러(식별된 항목 제외), EBITDA 5억 8000만 달러를 기록했습니다. 이 분기는 에틸렌 합작투자 및 클로로비닐 시설에서의 장기 유지보수로 인해 영향을 받았습니다. 판매는 2024년 2분기 대비 3% 감소했으며, 물량은 4% 감소하고 평균 판매가는 1% 증가했습니다.

회사는 유럽 에폭시 사업의 두 개 유닛과 관련하여 7500만 달러의 휴업 비용을 적립했습니다. 성능 및 필수 재료(PEM) 부문은 20억 달러의 매출을 보고했으며, 주택 및 인프라 제품(HIP) 부문은 11억 달러의 매출을 기록했습니다. 회사는 분기를 29억 달러의 현금과 46억 달러의 총 부채로 마감했습니다.

Westlake (WLK) a publié les résultats du troisième trimestre 2024, avec des ventes nettes de 3,1 milliards de dollars, un bénéfice net de 183 millions de dollars (hors éléments identifiés) et un EBITDA de 580 millions de dollars. Ce trimestre a été impacté par des arrêts de maintenance prolongés dans les coentreprises d'éthylène et dans les installations de chlorure de polyvinyle. Les ventes ont baissé de 3 % par rapport au deuxième trimestre 2024, avec une baisse de 4 % du volume et une augmentation de 1 % du prix de vente moyen.

L'entreprise a provisionné 75 millions de dollars pour des frais d'inactivité liés à deux unités de son activité époxy en Europe. Le segment Performance and Essential Materials (PEM) a enregistré des ventes de 2,0 milliards de dollars, tandis que le segment Housing and Infrastructure Products (HIP) a réalisé des ventes de 1,1 milliard de dollars. L'entreprise a terminé le trimestre avec 2,9 milliards de dollars en liquidités et 4,6 milliards de dollars de dettes totales.

Westlake (WLK) hat die Ergebnisse des dritten Quartals 2024 mit Nettoumsätzen von 3,1 Milliarden US-Dollar, einem Nettogewinn von 183 Millionen US-Dollar (ohne identifizierte Posten) und einem EBITDA von 580 Millionen US-Dollar veröffentlicht. Das Quartal wurde durch verlängerte Wartungsstillstände in der Ethylen-JV und in den Chlorvinylanlagen beeinträchtigt. Der Umsatz ging im Vergleich zum zweiten Quartal 2024 um 3% zurück, wobei das Volumen um 4% sank und der durchschnittliche Verkaufspreis um 1% stieg.

Das Unternehmen hat 75 Millionen US-Dollar für Stilllegungskosten im Zusammenhang mit zwei Einheiten im europäischen Epoxidgeschäft zurückgestellt. Der Bereich Performance and Essential Materials (PEM) meldete Umsätze von 2,0 Milliarden US-Dollar, während der Bereich Housing and Infrastructure Products (HIP) Umsätze von 1,1 Milliarden US-Dollar verbuchte. Das Unternehmen beendete das Quartal mit 2,9 Milliarden US-Dollar in bar und 4,6 Milliarden US-Dollar an Gesamtschulden.

Positive
  • Maintained strong cash position of $2.9 billion
  • 1% increase in average sales price quarter-over-quarter
  • Higher average sales price for polyethylene in PEM segment
  • Increased sales volume for chlorine, caustic soda and epoxy resin year-over-year
Negative
  • Net income decreased by $130 million compared to Q2 2024
  • EBITDA declined by $164 million quarter-over-quarter
  • Extended maintenance outages impacted production and increased costs
  • Sales volume decreased 4% sequentially
  • $75 million mothball expenses for European epoxy business units
  • Lower HIP segment sales due to slower North American residential construction

Insights

Westlake's Q3 2024 results show significant challenges, with $108 million in net income, down 65% from Q2's $313 million. Excluding one-time mothball expenses, adjusted net income was $183 million. Key concerns include:

  • Extended maintenance outages severely impacted operations, particularly in ethylene and chlorovinyl facilities
  • EBITDA dropped to $580 million from $744 million in Q2, a 22% decline
  • HIP segment showed weakness with sales declining to $1.1 billion from $1.2 billion due to slower residential construction

The $75 million mothball expense for European operations signals strategic restructuring, while strong balance sheet with $2.9 billion cash provides financial flexibility amid operational challenges.

The market landscape presents mixed signals for Westlake. While North American conditions remain relatively solid and Asia shows recovery signs, operational execution has become a critical concern. Notable market dynamics include:

  • Global industrial activity remains in recovery mode, with uneven progression across regions
  • North American residential construction slowdown impacting HIP segment performance
  • Strategic decision to mothball European epoxy units reflects adaptation to changing global market conditions

The combination of monetary stimulus measures and potential Federal Reserve actions could support recovery momentum, though operational reliability improvements will be important for capitalizing on market opportunities.

HOUSTON--(BUSINESS WIRE)-- Westlake Corporation (NYSE: WLK) (the "Company" or "Westlake") today announced third quarter 2024 results.

SUMMARY FINANCIAL HIGHLIGHTS (in millions of dollars, except per share data and percentages)

 

 

Three Months
Ended
September 30, 2024

 

Three Months
Ended June 30,
2024

 

Three Months
Ended
September 30,
2023

 

 

 

 

 

 

 

Westlake Corporation

 

 

 

 

 

 

Net sales

 

$

3,117

 

 

$

3,207

 

 

$

3,115

 

Income from operations

 

$

180

 

 

$

406

 

 

$

349

 

Net income attributable to Westlake Corporation

 

$

108

 

 

$

313

 

 

$

285

 

Diluted earnings per common share

 

$

0.83

 

 

$

2.40

 

 

$

2.20

 

Identified Item (1)

 

$

75

 

 

$

 

 

$

 

Net income attributable to Westlake Corporation excl. Identified Item

 

$

183

 

 

$

313

 

 

$

285

 

Diluted earnings per common share excl. Identified Item

 

$

1.41

 

 

$

2.40

 

 

$

2.20

 

EBITDA

 

$

505

 

 

$

744

 

 

$

682

 

EBITDA excl. Identified Item

 

$

580

 

 

$

744

 

 

$

682

 

EBITDA margin (2)

 

 

19%

 

 

23%

 

 

22%

 

 

 

 

 

 

 

Performance and Essential Materials ("PEM") Segment

 

 

 

 

 

 

Net sales

 

$

2,019

 

 

$

2,013

 

 

$

1,971

 

Income from operations

 

$

(9

)

 

$

157

 

 

$

105

 

EBITDA

 

$

222

 

 

$

391

 

 

$

339

 

Identified Item (1)

 

$

75

 

 

$

 

 

$

 

EBITDA excl. Identified Item

 

$

297

 

 

$

391

 

 

$

339

 

EBITDA margin (2)

 

 

15%

 

 

19%

 

 

17%

 

 

 

 

 

 

 

Housing and Infrastructure Products ("HIP") Segment

 

 

 

 

 

 

Net sales

 

$

1,098

 

 

$

1,194

 

 

$

1,144

 

Income from operations

 

$

202

 

 

$

266

 

 

$

256

 

EBITDA

 

$

262

 

 

$

336

 

 

$

327

 

EBITDA margin

 

 

24%

 

 

28%

 

 

29%

______________________________

(1)

"Identified Item" represents $75 million accrued expense to temporarily cease operations ("mothball") of the allyl chloride (AC) and epichlorohydrin (ECH) units at the Company's site in Pernis, the Netherlands

(2)

Excludes Identified Item

RESULTS

Consolidated Results

(Unless otherwise noted the financial numbers below exclude the Identified Item)

For the third quarter of 2024, the Company reported net sales of $3.1 billion, net income of $183 million, or $1.41 per share, and EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of $580 million. During the third quarter of 2024, we experienced extended maintenance outages at our ethylene JV facility, which drove higher purchases of ethylene feedstock, and one of our chlorovinyl facilities.

Third quarter 2024 sales of $3.1 billion declined by 3% compared to the second quarter of 2024. Company sales volume decreased 4% sequentially while average sales price increased 1% from the previous quarter. Net income of $183 million decreased by $130 million as compared to the second quarter of 2024. The sequential decrease in net income compared to the prior quarter was primarily due to the aforementioned production outages, higher ethylene feedstock costs and lower sales volume.

EBITDA of $580 million for the third quarter of 2024 decreased by $102 million as compared to third quarter 2023 EBITDA of $682 million. Third quarter 2024 EBITDA decreased by $164 million as compared to second quarter 2024 EBITDA of $744 million.

A reconciliation of EBITDA (including and excluding the Identified Item) 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. Reconciliations of segment EBITDA (including and excluding the Identified Item) to net income and income from operations can be found in the financial schedules at the end of this press release.

Mothball Expenses ("Identified Item")

During the third quarter of 2024, the Company accrued $75 million of mothball expenses in the Performance and Essential Materials segment related to the previously announced decision to mothball two units within our European epoxy business to align our manufacturing footprint and costs with changing global conditions. Consistent with our previous disclosure, cash outflows related to these mothball expenses are expected to occur over several years starting in 2025.

Cash and Debt

Net cash provided by operating activities was $474 million for the third quarter of 2024 and capital expenditures were $220 million. $300 million of maturing senior notes were redeemed during the quarter, resulting in cash and cash equivalents of $2.9 billion and total debt of $4.6 billion as of September 30, 2024.

Performance and Essential Materials Segment

(Unless otherwise noted the financial numbers below exclude the Identified Item)

For the third quarter of 2024, PEM sales of $2.0 billion were in line with the second quarter of 2024. PEM sales volume decreased 1% quarter-over-quarter while average sales price increased 1% sequentially.

PEM income from operations was $66 million in the third quarter of 2024 as compared to income from operations of $157 million in the second quarter of 2024. This sequential decrease of $91 million was primarily driven by unplanned outages and higher ethylene feedstock costs, which were partially offset by higher average sales price, particularly for polyethylene.

Compared to the prior year period, PEM income from operations decreased by $39 million. This decrease in income from operations versus the third quarter of 2023 was primarily driven by unplanned outages and lower average sales price that were partially offset by higher sales volume, particularly for chlorine, caustic soda and epoxy resin.

Housing and Infrastructure Products Segment

For the third quarter of 2024, HIP sales of $1.1 billion decreased from second quarter of 2024 sales of $1.2 billion as a result of lower sales volume due to slower North American residential construction activity and weather disruptions.

HIP income from operations was $202 million in the third quarter of 2024 as compared to income from operations of $266 million in the second quarter of 2024. This sequential decrease of $64 million was primarily due to lower sales volume at most product categories as a result of slower North American residential construction activity and weather disruptions.

Compared to the prior year period, HIP income from operations decreased by $54 million. This decrease in income from operations versus the third quarter of 2023 was primarily driven by lower average sales price and lower sales volume, particularly for pipe & fittings.

EXECUTIVE COMMENTARY

"During the third quarter of 2024, global macroeconomic trends modestly improved from the environment we saw in the second quarter of 2024 with relatively solid and improving conditions in North America, a continuing recovery in Asia, and slow improvement in Europe. Demand for our products during the third quarter was consistent with these market conditions, and our third quarter financial results would have reflected these trends if it had not been for extended maintenance outages at two plants during the quarter in our PEM segment. While we are disappointed with this operational performance, we have completed the maintenance and these plants have returned to service. Furthermore, we are applying the lessons learned from these incidents to other plants, while increasing our focus on preventive maintenance across our organization to improve the reliability of our plants," said Jean-Marc Gilson, President and Chief Executive Officer.

"The pace of the recovery from the recent trough in global industrial and manufacturing activity remains uneven. However, recent monetary and fiscal stimulus, including actions by the Federal Reserve and the Chinese government, have the potential to accelerate the pace and duration of the macroeconomic recovery. Meanwhile, we will continue to focus on our levers for growth, including developing and commercializing innovative new products to help our customers address their needs, improving the profitability and reliability of our plants, and redeploying our investment-grade balance sheet to create long-term shareholder value," concluded Mr. Gilson.

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, global macroeconomic conditions, continuing stabilization or increases in sales prices, volumes, margins and profitability in both domestic and export markets for most of our products, industrial, manufacturing, residential construction and infrastructure activity in our target markets, our ability to weather economic volatility, raw material costs, higher energy prices, the earnings potential of our assets, monetary and fiscal policies domestically and abroad, the pace and duration of economic recovery, our ability to improve profitability and reliability of our plants, future preventative maintenance activities, our ability to continue to execute our strategies, and our ability to create long-term value for our shareholders 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: general economic and business conditions; the cyclical nature of the chemical and building products industries; the availability, cost and volatility of raw materials and energy; the results of acquisitions and our integration efforts; uncertainties associated with the United States, European and worldwide economies, including those due to political tensions and conflict in the Middle East, Russia and Ukraine and elsewhere; uncertainties associated with pandemic infectious diseases; uncertainties associated with climate change; the potential impact on demand for ethylene, polyethylene and polyvinyl chloride due to initiatives such as recycling and customers seeking alternatives to polymers; current and potential governmental regulatory actions in the United States and other countries; industry production capacity and operating rates; the supply/demand balance for Westlake's products; competitive products and pricing pressures; instability in the credit and financial markets; access to capital markets; terrorist acts; operating interruptions (including explosions, fires, weather-related incidents, unscheduled downtime and environmental risks); changes in laws and regulations, including trade policies; technological developments; information systems failures and cyberattacks; foreign currency exchange risks; our ability to implement our business strategies; creditworthiness of our customers; the effect and results of litigation and settlements of litigation; 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, 2023, which was filed with the SEC in February 2024, and Westlake's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which was filed with the SEC in August 2024.

Use of Non-GAAP Financial Measures

This release makes reference to certain "non-GAAP" financial measures, such as EBITDA, EBITDA margin and certain financial measures adjusted to exclude the effect of the Identified Item, 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, EBITDA margin and certain financial measures that exclude the effect of the Identified Item, 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 (including and excluding the Identified Item), and (ii) segment EBITDA to segment income from operations (including and excluding the Identified Item) 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 goods. 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 third quarter 2024 results will be held Tuesday, November 5, 2024 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/BI9dd3d967e2694f52b0a3216544d073e3. 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/te7pi7po.

WESTLAKE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

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

Net sales

 

$

3,117

 

 

$

3,115

 

 

$

9,299

 

 

$

9,722

 

Cost of sales

 

 

2,618

 

 

 

2,529

 

 

 

7,670

 

 

 

7,702

 

Gross profit

 

 

499

 

 

 

586

 

 

 

1,629

 

 

 

2,020

 

Selling, general and administrative expenses

 

 

215

 

 

 

206

 

 

 

648

 

 

 

641

 

Amortization of intangibles

 

 

29

 

 

 

31

 

 

 

89

 

 

 

92

 

Restructuring, transaction and integration-related costs

 

 

75

 

 

 

 

 

 

83

 

 

 

6

 

Income from operations

 

 

180

 

 

 

349

 

 

 

809

 

 

 

1,281

 

Interest expense

 

 

(39

)

 

 

(40

)

 

 

(120

)

 

 

(124

)

Other income, net

 

 

44

 

 

 

56

 

 

 

153

 

 

 

101

 

Income before income taxes

 

 

185

 

 

 

365

 

 

 

842

 

 

 

1,258

 

Provision for income taxes

 

 

65

 

 

 

70

 

 

 

214

 

 

 

249

 

Net income

 

 

120

 

 

 

295

 

 

 

628

 

 

 

1,009

 

Net income attributable to noncontrolling interests

 

 

12

 

 

 

10

 

 

 

33

 

 

 

33

 

Net income attributable to Westlake Corporation

 

$

108

 

 

$

285

 

 

$

595

 

 

$

976

 

Earnings per common share attributable to Westlake Corporation:

 

 

 

 

 

 

 

 

Basic

 

$

0.84

 

 

$

2.22

 

 

$

4.61

 

 

$

7.61

 

Diluted

 

$

0.83

 

 

$

2.20

 

 

$

4.58

 

 

$

7.56

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

128,638,632

 

 

 

127,854,464

 

 

 

128,525,531

 

 

 

127,685,210

 

Diluted

 

 

129,340,461

 

 

 

128,583,927

 

 

 

129,237,560

 

 

 

128,509,618

 

WESTLAKE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

September 30,
2024

 

 

December 31,
2023

 

 

 

(in millions of dollars)

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,915

 

 

$

3,304

 

Accounts receivable, net

 

 

1,754

 

 

 

1,601

 

Inventories

 

 

1,747

 

 

 

1,622

 

Prepaid expenses and other current assets

 

 

133

 

 

 

82

 

Total current assets

 

 

6,549

 

 

 

6,609

 

Property, plant and equipment, net

 

 

8,602

 

 

 

8,519

 

Other assets, net

 

 

5,958

 

 

 

5,907

 

Total assets

 

$

21,109

 

 

$

21,035

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities (accounts payable and accrued and other liabilities)

 

$

2,351

 

 

$

2,491

 

Current portion of long-term debt, net

 

 

 

 

 

299

 

Long-term debt, net

 

 

4,616

 

 

 

4,607

 

Other liabilities

 

 

2,956

 

 

 

2,874

 

Total liabilities

 

 

9,923

 

 

 

10,271

 

Total Westlake Corporation stockholders' equity

 

 

10,662

 

 

 

10,241

 

Noncontrolling interests

 

 

524

 

 

 

523

 

Total equity

 

 

11,186

 

 

 

10,764

 

Total liabilities and equity

 

$

21,109

 

 

$

21,035

 

WESTLAKE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

(in millions of dollars)

Cash flows from operating activities

 

 

 

 

Net income

 

$

628

 

 

$

1,009

 

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

 

 

 

 

Depreciation and amortization

 

 

833

 

 

 

815

 

Deferred income taxes

 

 

(58

)

 

 

(67

)

Net loss on disposition and others

 

 

51

 

 

 

43

 

Other balance sheet changes

 

 

(574

)

 

 

(37

)

Net cash provided by operating activities

 

 

880

 

 

 

1,763

 

Cash flows from investing activities

 

 

 

 

Additions to investments in unconsolidated subsidiaries

 

 

(24

)

 

 

(18

)

Additions to property, plant and equipment

 

 

(723

)

 

 

(752

)

Other, net

 

 

11

 

 

 

20

 

Net cash used for investing activities

 

 

(736

)

 

 

(750

)

Cash flows from financing activities

 

 

 

 

Distributions to noncontrolling interests

 

 

(31

)

 

 

(33

)

Dividends paid

 

 

(197

)

 

 

(156

)

Proceeds from exercise of stock options

 

 

13

 

 

 

39

 

Repayment of senior notes

 

 

(300

)

 

 

 

Repurchase of common stock for treasury

 

 

 

 

 

(23

)

Other, net

 

 

(2

)

 

 

(2

)

Net cash used for financing activities

 

 

(517

)

 

 

(175

)

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

 

 

(15

)

 

 

(12

)

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

 

 

(388

)

 

 

826

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

3,319

 

 

 

2,246

 

Cash, cash equivalents and restricted cash at end of period

 

$

2,931

 

 

$

3,072

 

WESTLAKE CORPORATION

SEGMENT INFORMATION

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

(in millions of dollars)

Net external sales

 

 

 

 

 

 

 

 

Performance and Essential Materials

 

 

 

 

 

 

 

 

Performance Materials

 

$

1,164

 

 

$

1,127

 

 

$

3,505

 

 

$

3,549

 

Essential Materials

 

 

855

 

 

 

844

 

 

 

2,458

 

 

 

2,907

 

Total Performance and Essential Materials

 

 

2,019

 

 

 

1,971

 

 

 

5,963

 

 

 

6,456

 

Housing and Infrastructure Products

 

 

 

 

 

 

 

 

Housing Products

 

 

937

 

 

 

963

 

 

 

2,826

 

 

 

2,699

 

Infrastructure Products

 

 

161

 

 

 

181

 

 

 

510

 

 

 

567

 

Total Housing and Infrastructure Products

 

 

1,098

 

 

 

1,144

 

 

 

3,336

 

 

 

3,266

 

 

 

$

3,117

 

 

$

3,115

 

 

$

9,299

 

 

$

9,722

 

Income (loss) from operations

 

 

 

 

 

 

 

 

Performance and Essential Materials

 

$

(9

)

 

$

105

 

 

$

170

 

 

$

723

 

Housing and Infrastructure Products

 

 

202

 

 

 

256

 

 

 

678

 

 

 

589

 

Corporate and other

 

 

(13

)

 

 

(12

)

 

 

(39

)

 

 

(31

)

 

 

$

180

 

 

$

349

 

 

$

809

 

 

$

1,281

 

Depreciation and amortization

 

 

 

 

 

 

 

 

Performance and Essential Materials

 

$

225

 

 

$

225

 

 

$

669

 

 

$

652

 

Housing and Infrastructure Products

 

 

54

 

 

 

51

 

 

 

157

 

 

 

157

 

Corporate and other

 

 

2

 

 

 

1

 

 

 

7

 

 

 

6

 

 

 

$

281

 

 

$

277

 

 

$

833

 

 

$

815

 

Other income, net

 

 

 

 

 

 

 

 

Performance and Essential Materials

 

$

6

 

 

$

9

 

 

$

27

 

 

$

14

 

Housing and Infrastructure Products

 

 

6

 

 

 

20

 

 

 

27

 

 

 

30

 

Corporate and other

 

 

32

 

 

 

27

 

 

 

99

 

 

 

57

 

 

 

$

44

 

 

$

56

 

 

$

153

 

 

$

101

 

WESTLAKE CORPORATION

RECONCILIATION OF EBITDA TO NET INCOME, INCOME FROM OPERATIONS AND

NET CASH PROVIDED BY OPERATING ACTIVITIES (INCLUDING AND EXCLUDING IDENTIFIED ITEM)

(Unaudited)

 

 

 

Three Months
Ended June 30,

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2024

 

2023

 

2024

 

2023

 

 

(in millions of dollars, except percentages)

Net cash provided by operating activities

 

$

237

 

 

$

474

 

 

$

696

 

 

$

880

 

 

$

1,763

 

Changes in operating assets and liabilities and other

 

 

50

 

 

 

(354

)

 

 

(417

)

 

 

(310

)

 

 

(821

)

Deferred income taxes

 

 

36

 

 

 

 

 

 

16

 

 

 

58

 

 

 

67

 

Net income

 

 

323

 

 

 

120

 

 

 

295

 

 

 

628

 

 

 

1,009

 

Add:

 

 

 

 

 

 

 

 

 

 

Mothball expenses

 

 

 

 

 

75

 

 

 

 

 

 

75

 

 

 

 

Net income excl. Identified Item

 

$

323

 

 

$

195

 

 

$

295

 

 

$

703

 

 

$

1,009

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

323

 

 

 

120

 

 

 

295

 

 

 

628

 

 

 

1,009

 

Less:

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

59

 

 

 

44

 

 

 

56

 

 

 

153

 

 

 

101

 

Interest expense

 

 

(41

)

 

 

(39

)

 

 

(40

)

 

 

(120

)

 

 

(124

)

Provision for income taxes

 

 

(101

)

 

 

(65

)

 

 

(70

)

 

 

(214

)

 

 

(249

)

Income from operations

 

 

406

 

 

 

180

 

 

 

349

 

 

 

809

 

 

 

1,281

 

Add:

 

 

 

 

 

 

 

 

 

 

Mothball expenses

 

 

 

 

 

75

 

 

 

 

 

 

75

 

 

 

 

Income from operations excl. Identified Item

 

 

406

 

 

 

255

 

 

 

349

 

 

 

884

 

 

 

1,281

 

Add:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

279

 

 

 

281

 

 

 

277

 

 

 

833

 

 

 

815

 

Other income, net

 

 

59

 

 

 

44

 

 

 

56

 

 

 

153

 

 

 

101

 

EBITDA excl. Identified Item

 

 

744

 

 

 

580

 

 

 

682

 

 

 

1,870

 

 

 

2,197

 

Less:

 

 

 

 

 

 

 

 

 

 

Mothball expenses

 

 

 

 

 

75

 

 

 

 

 

 

75

 

 

 

EBITDA

 

$

744

 

 

$

505

 

 

$

682

 

 

$

1,795

 

 

$

2,197

 

Net external sales

 

$

3,207

 

 

$

3,117

 

 

$

3,115

 

 

$

9,299

 

 

$

9,722

 

Operating Income Margin

 

 

13%

 

 

6%

 

 

11%

 

 

9%

 

 

13%

Operating income margin excl. Identified Item

 

 

13%

 

 

8%

 

 

11%

 

 

10%

 

 

13%

EBITDA Margin

 

 

23%

 

 

16%

 

 

22%

 

 

19%

 

 

23%

EBITDA margin excl. Identified Item

 

 

23%

 

 

19%

 

 

22%

 

 

20%

 

 

23%

WESTLAKE CORPORATION

RECONCILIATION OF DILUTED EARNINGS PER COMMON SHARE TO DILUTED EARNINGS PER COMMON SHARE EXCLUDING IDENTIFIED ITEM

(Unaudited)

 
       

 

 

Three Months
Ended June 30,

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(per share data)

 

Diluted earnings per common share attributable to Westlake Corporation

 

$

2.40

 

 

$

0.83

 

 

$

2.20

 

 

$

4.58

 

 

$

7.56

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mothball expenses

 

 

 

 

0.58

 

 

 

 

 

0.58

 

 

 

Diluted earnings per common share attributable to Westlake Corporation excl. Identified Item

 

$

2.40

 

 

$

1.41

 

 

$

2.20

 

 

$

5.16

 

 

$

7.56

 

WESTLAKE CORPORATION

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

(Unaudited)

 
       

 

 

Three Months
Ended June 30,

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(in millions of dollars)

 

Net cash provided by operating activities

 

$

237

 

 

$

474

 

 

$

696

 

 

$

880

 

 

$

1,763

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

231

 

 

 

220

 

 

$

245

 

 

 

723

 

 

 

752

 

Free cash flow

 

$

6

 

 

$

254

 

 

$

451

 

 

$

157

 

 

$

1,011

 

WESTLAKE CORPORATION

RECONCILIATION OF PEM SEGMENT EBITDA TO INCOME FROM OPERATIONS (INCLUDING AND EXCLUDING IDENTIFIED ITEM)

(Unaudited)

 

 

 

Three Months
Ended June 30,

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

2024

 

2023

 

 

2024

 

 

2023

 

 

 

(in millions of dollars, except percentages)

Performance and Essential Materials Segment

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

157

 

 

$

(9

)

 

$

105

 

 

$

170

 

 

$

723

 

Add:

 

 

 

 

 

 

 

 

 

 

Mothball expenses

 

 

 

75

 

 

 

 

 

 

75

 

 

 

 

Income (loss) from operations excl. Identified Item

 

 

157

 

 

 

66

 

 

 

105

 

 

 

245

 

 

 

723

 

Add:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

224

 

 

 

225

 

 

 

225

 

 

 

669

 

 

 

652

 

Other income, net

 

 

10

 

 

 

6

 

 

 

9

 

 

 

27

 

 

 

14

 

EBITDA excl. Identified Item

 

 

391

 

 

 

297

 

 

 

339

 

 

 

941

 

 

 

1,389

 

Less:

 

 

 

 

 

 

 

 

 

 

Mothball expenses

 

 

 

 

 

75

 

 

 

 

 

 

75

 

 

 

 

EBITDA

 

$

391

 

 

$

222

 

 

$

339

 

 

$

866

 

 

$

1,389

 

Net external sales

 

$

2,013

 

 

$

2,019

 

 

$

1,971

 

 

$

5,963

 

 

$

6,456

 

Operating Income Margin

 

 

8%

 

 

—%

 

 

5%

 

 

3%

 

 

11%

Operating income margin excl. Identified Item

 

 

8%

 

 

3%

 

 

5%

 

 

4%

 

 

11%

EBITDA Margin

 

 

19%

 

 

11%

 

 

17%

 

 

15%

 

 

22%

EBITDA margin excl. Identified Item

 

 

19%

 

 

15%

 

 

17%

 

 

16%

 

 

22%

WESTLAKE CORPORATION

RECONCILIATION OF HIP SEGMENT EBITDA TO INCOME FROM OPERATIONS

(Unaudited)

 
       

 

 

Three Months
Ended June 30,

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(in millions of dollars, except percentages)

 

Housing and Infrastructure Products Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

266

 

 

$

202

 

 

$

256

 

 

$

678

 

 

$

589

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

53

 

 

 

54

 

 

 

51

 

 

 

157

 

 

 

157

 

Other income, net

 

 

17

 

 

 

6

 

 

 

20

 

 

 

27

 

 

 

30

 

EBITDA

 

$

336

 

 

$

262

 

 

$

327

 

 

$

862

 

 

$

776

 

Net external sales

 

$

1,194

 

 

$

1,098

 

 

$

1,144

 

 

$

3,336

 

 

$

3,266

 

Operating Income Margin

 

 

22%

 

 

 

18%

 

 

 

22%

 

 

 

20%

 

 

 

18%

 

EBITDA Margin

 

 

28%

 

 

 

24%

 

 

 

29%

 

 

 

26%

 

 

 

24%

 

WESTLAKE CORPORATION

SUPPLEMENTAL INFORMATION

PRODUCT SALES PRICE AND VOLUME VARIANCE BY OPERATING SEGMENTS

(Unaudited)

 

 

 

Third Quarter 2024 vs. Third
Quarter 2023

 

Third Quarter 2024 vs. Second
Quarter 2024

 

 

Average

Sales Price

 

Volume

 

Average

Sales Price

 

Volume

Performance and Essential Materials

 

-3

%

 

+6

%

 

+1

%

 

-1

%

Housing and Infrastructure Products

 

-3

%

 

-1

%

 

%

 

-9

%

Company

 

-3

%

 

+3

%

 

+1

%

 

-4

%

 

Contact—(713) 960-9111

Investors—Steve Bender

Media—L. Benjamin Ederington

Source: Westlake Corporation

FAQ

What was Westlake's (WLK) earnings per share in Q3 2024?

Westlake reported diluted earnings per share of $1.41 excluding identified item in Q3 2024, down from $2.40 in Q2 2024.

How much were Westlake's (WLK) net sales in Q3 2024?

Westlake's net sales in Q3 2024 were $3.1 billion, representing a 3% decline from Q2 2024.

What was the identified item expense for WLK in Q3 2024?

Westlake recorded a $75 million identified item expense related to mothballing two units within their European epoxy business.

What was Westlake's (WLK) cash position at the end of Q3 2024?

Westlake had $2.9 billion in cash and cash equivalents as of September 30, 2024.

Westlake Corporation

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