Element Solutions Inc. Chief Executive Officer Benjamin Gliklich said Wednesday the specialty chemicals maker faces foreign exchange currency headwinds this year.
“The rapid rise in the U.S. dollar over the last three months has created material foreign exchange translation headwinds. We now expect a greater than $35 million year-over-year headwind to full-year 2022 adjusted EBITDA due to FX translation, as opposed to the $20 million we had expected at the end of Q1 2022. This is driving the revision of our full-year 2022 adjusted EBITDA guidance to a range of $565 million to $575 million.”
“While global macro conditions are deteriorating, we expect our full-year 2022 constant currency adjusted EBITDA growth rate to be modestly better than the prior range we provided in April this year given the strength of our execution, the demonstrated durability of our profits, improved synergy realization and cost management. This guidance implies 12% reported dollar and greater than 20% constant currency adjusted EBITDA growth in the second half of 2022, despite a challenging economic picture.”
For the full-year 2022, the Element Solutions updated its financial guidance for adjusted EBITDA to a range of $565 million to $575 million to reflect translational foreign exchange headwind. Full-year constant currency adjusted EBITDA growth expectations are modestly higher than prior quarter guidance. Taking into consideration the translational currency headwind, the company now expects full-year 2022 adjusted EPS of $1.52 to $1.55, and free cash flow of approximately $270 million. For the third quarter of 2022, adjusted EBITDA is expected to be approximately $140 million.
Write to Patrick Chu at [email protected]
(END) Dow Jones Newswires
07-27-22 1854ET
Element Solutions Inc. Faces Forex Headwinds This Year — Currency Comment
Element Solutions Inc. Chief Executive Officer Benjamin Gliklich said Wednesday the specialty chemicals maker faces foreign exchange currency head
Element Solutions Inc. Chief Executive Officer Benjamin Gliklich said Wednesday the specialty chemicals maker faces foreign exchange currency headwinds this year.
“The rapid rise in the U.S. dollar over the last three months has created material foreign exchange translation headwinds. We now expect a greater than $35 million year-over-year headwind to full-year 2022 adjusted EBITDA due to FX translation, as opposed to the $20 million we had expected at the end of Q1 2022. This is driving the revision of our full-year 2022 adjusted EBITDA guidance to a range of $565 million to $575 million.”
“While global macro conditions are deteriorating, we expect our full-year 2022 constant currency adjusted EBITDA growth rate to be modestly better than the prior range we provided in April this year given the strength of our execution, the demonstrated durability of our profits, improved synergy realization and cost management. This guidance implies 12% reported dollar and greater than 20% constant currency adjusted EBITDA growth in the second half of 2022, despite a challenging economic picture.”
For the full-year 2022, the Element Solutions updated its financial guidance for adjusted EBITDA to a range of $565 million to $575 million to reflect translational foreign exchange headwind. Full-year constant currency adjusted EBITDA growth expectations are modestly higher than prior quarter guidance. Taking into consideration the translational currency headwind, the company now expects full-year 2022 adjusted EPS of $1.52 to $1.55, and free cash flow of approximately $270 million. For the third quarter of 2022, adjusted EBITDA is expected to be approximately $140 million.
Write to Patrick Chu at [email protected]
(END) Dow Jones Newswires
07-27-22 1854ET
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