Q2 2024 Avient Corp Earnings Call Transcript
Key Points
- Avient Corp (AVNT) achieved 3% sales growth on an as-reported basis and 5% on an organic basis, marking the first sales growth in seven quarters.
- Adjusted EBITDA margins expanded by 100 basis points to 16.9%, driven by cost control and raw material deflation.
- Adjusted earnings per share (EPS) increased by 21% year-over-year, exceeding prior guidance by $0.05.
- Healthcare sales grew by 10% year-over-year, indicating the end of destocking and strong demand in drug delivery and monitoring devices.
- The company saw strong performance in key end markets such as packaging and consumer, with growth rates of 8% and 10% respectively.
- Telecommunication and energy end markets remain challenged, with sales down double digits in the second quarter.
- Raw material costs are expected to rise in the second half of the year, impacting margins.
- The European market remains cautious due to weak manufacturing PMI and potential impacts on business and consumer confidence.
- Despite strong performance, the company faces a $30 million year-over-year headwind from variable compensation in the second half of the year.
- Sales growth in Asia was modest at 1%, with weakness in building and construction offsetting gains in healthcare.
Good morning, ladies and gentlemen, and welcome to Avient Corporation's webcast to discuss the company's second quarter 2024 results. My name is Shannon, and I will be your operator for today. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I would now like to turn the call over to Joe Di Salvo, Vice President, Treasurer and Investor Relations. Please proceed.
Thank you, and good morning to everyone joining us on the call today. Before beginning, we'd like to remind you that statements made during this webcast may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements will give current expectations or forecasts of future events and are not guarantees of future performance based on management's expectation and involve a number of business risks and uncertainties, any of which cause actual results differ materially from
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