{"id":485025,"date":"2021-04-30T06:43:25","date_gmt":"2021-04-30T10:43:25","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/avient-announces-record-first-quarter-2021-results-increases-full-year-guidance\/"},"modified":"2021-04-30T06:43:25","modified_gmt":"2021-04-30T10:43:25","slug":"avient-announces-record-first-quarter-2021-results-increases-full-year-guidance","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/avient-announces-record-first-quarter-2021-results-increases-full-year-guidance\/","title":{"rendered":"Avient Announces Record First Quarter 2021 Results; Increases Full Year Guidance"},"content":{"rendered":"
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— Organic revenues increased 17% to $1.16 billion driven by strong demand across all segments, with the most significant growth in healthcare and consumer end markets<\/h2>\n

— GAAP EPS from continuing operations of $0.86 compared to $0.38 in the prior year quarter<\/h2>\n

— Adjusted EPS from continuing operations of $0.89 expanded 68% over the prior year of $0.53 with all segments achieving record operating income<\/h2>\n

— Full year adjusted EPS guidance for 2021 increased from $2.40 to $2.80 representing 45% growth over the prior year of $1.93.<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n CLEVELAND<\/span>, April 30, 2021<\/span> \/PRNewswire\/ —\u00a0Avient Corporation (NYSE: AVNT), a leading provider of specialized and sustainable material solutions, today reported its first quarter results for 2021. First quarter 2021 GAAP EPS from continuing operations was $0.86<\/span> compared to $0.38<\/span> in the prior year first quarter.\u00a0 The company noted that GAAP EPS includes special items (Attachment 3), which impacted EPS in both periods and were primarily associated with acquisition-related and restructuring costs.\u00a0 Unless otherwise noted herein, all comparisons to prior year results are pro forma for the Clariant Masterbatch acquisition.<\/p>\n

“I’m very pleased to report we achieved the highest level of organic sales growth in the last decade, as the economy recovers from the pandemic lows of the prior year.\u00a0 This is a direct result of the investments we have made to transform our portfolio to one that is more specialized and focused on high growth end markets with sustainable solutions,” said Robert M. Patterson<\/span>, Chairman, President and Chief Executive Officer, Avient Corporation.\u00a0\u00a0 <\/p>\n

The company cited strong demand for healthcare (up 22%) and consumer products (up 24%) as organic revenue increased 17% to $1.16 billion<\/span>.<\/i> Coupled with expanding margins, and early synergy capture related to the Clariant Masterbatch acquisition, this led to a 68% increase in adjusted EPS to $0.89<\/span> versus $0.53<\/span> in the prior year.\u00a0 <\/p>\n

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Mr. Patterson added, “We are an asset-light, high-touch business that generates very high free cash flow conversion.\u00a0 We specialize in formulating sustainable solutions to meet our customers’ toughest challenges, and I am proud of how well our team has delivered throughout the COVID-19 pandemic and recent supply chain disruptions.”<\/p>\n

The company noted the following segment highlights:<\/p>\n

The Color, Additives and Inks segment delivered record operating income of $89 million<\/span> during the first quarter, a 40% increase over the prior year.\u00a0 The company said it is ahead of schedule in capturing cost synergies from the Clariant Masterbatch acquisition and now expects to achieve $45 million<\/span> in the current year from the previously announced $35 million<\/span>.\u00a0 <\/p>\n

The Specialty Engineered Materials segment also achieved its highest-ever quarterly operating income at $34\u00a0million, a 53% increase over the prior year. Demand conditions were robust in the quarter, in particular for composite technologies and new business gains in healthcare applications.\u00a0\u00a0\u00a0\u00a0 <\/p>\n

Despite significant supply chain disruptions, the company’s Distribution segment also performed exceptionally well to start the year, highlighted by record quarterly operating income of $24 million<\/span>, a 24% increase over the prior year, as sales increased 25% to $363 million<\/span>.\u00a0 <\/p>\n

\n Second Quarter and Full Year 2021 Outlook<\/b>\n <\/p>\n

Commenting on the Company’s 2021 outlook, Mr. Patterson said, “As more and more vaccines are administered, we anticipate demand conditions will continue to improve.\u00a0 We now estimate second quarter sales of $1.1 billion<\/span> and adjusted EPS of $0.80<\/span>. This represents sales and adjusted EPS growth of 26% and 90%, respectively, over the prior year second quarter.” <\/p>\n

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Mr. Patterson added, “We are also increasing our full year 2021 estimates and now expect revenues of approximately $4.3 billion<\/span> and adjusted EPS of $2.80<\/span>, a 45% increase over the prior year.” <\/p>\n

“As companies report their earnings this year and compare to 2020, there will be many examples of significant growth being delivered.\u00a0 This is the case for Avient as well, but what further differentiates us, is that in 2020 our EPS also grew 11% vs. 2019. Our EPS projections for 2021 are 61% higher than 2019 because of the resiliency of our portfolio, the end markets we serve and how we have executed during these challenging times,” Mr. Patterson concluded. <\/p>\n

The Company noted it will provide more details on its 2021 outlook during the webcast scheduled for 9:00 a.m. Eastern Time<\/span> on April 30<\/span>, 2021.\u00a0\u00a0\u00a0 <\/p>\n

\n Pro Forma<\/b>\n <\/p>\n

The Company acquired the Clariant Masterbatch business (“CMB”) on July 1, 2020<\/span> (the “Acquisition Date”).\u00a0 Unless otherwise noted, all comparisons to prior year financial results herein are presented on a pro forma basis and referred to as “organic” such that the prior periods include the business results of CMB for that prior period.\u00a0 Management believes this provides better comparability of the performance of the combined businesses.\u00a0\u00a0 Refer to Attachment 7 Reconciliation of Non-GAAP Financial Measures for details regarding adjustments to previously reported results to arrive to the pro forma financial metrics.\u00a0\u00a0\u00a0 <\/p>\n

\n Webcast Details<\/b>\n <\/p>\n

The webcast can be viewed live at avient.com\/investors<\/a>, or by clicking here: https:\/\/edge.media-server.com\/mmc\/p\/eaivs28r<\/a>. To participate in the audio-only portion of the call, dial 1-844-835-7433 (domestic) or 1-914-495-8589 (international) and provide conference ID number 6746706.\u00a0 There will be a question and answer session following the company’s presentation and prepared remarks.<\/p>\n

A recording of the webcast and the slide presentation will be available at avient.com\/investors<\/a>.\u00a0 In addition, a recording of the audio will be available for one week, beginning at 12:00 p.m. ET on Friday<\/span>, April 30, 2021.\u00a0 To access, dial 1-855-859-2056 (domestic) or 1-404-537-3406 (international) and provide conference ID number 6746706.<\/p>\n

\n About Avient<\/b>\n <\/p>\n

Avient Corporation (NYSE: AVNT), with 2020 pro forma revenues of $3.8 billion<\/span>, provides specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world. Examples include:<\/p>\n