AdvanSix, Parsippany, N.J., reported record earnings and sales in the second quarter ending June 30, which it said reflected strong execution and improving end market demand and tight industry supply conditions. Net income was up 286 percent, earnings per share 273 percent, sales 88 percent, and EBITDA 147 percent.
Second-quarter net income was $44.1 million ($1.53 per diluted share) on sales of $437.7 million, up from the year-ago $11.4 million ($0.41 per share) and $233 million, respectively. EBITDA was $76 million, up from $30.7 million.
“Our entire organization performed exceptionally well in the current set of industry conditions to support our customers throughout the quarter while delivering record sales, earnings and margin performance,” said Erin Kane, AdvanSix President and CEO.
“Our record performance is attributable to strong volume and pricing improvement, including continued growth in differentiated products amid favorable end market conditions and tight industry supply,” he said.
“Demand has improved across a number of the diverse end markets we serve, including building and construction, auto, electronics, packaging, paints and coatings, and solvents, as well as the strongest set of agricultural industry fundamentals seen in the last decade. Across the board, it has been a terrific first-half of 2021, with robust earnings and cash flow performance reflecting strong execution and the strength of our business model and portfolio,” Kane continued.
With all major products performing well, ammonium sulfate sales represented only 23 percent of company sales in the second-quarter, down from the year-ago 34 percent. Going forward, the company expects strong agricultural industry fundamentals to continue. It said the typical North America ammonium sulfate seasonality is expected to drive a higher export mix in the third quarter.
“We continue to execute against a focused strategy and the outlook for our business remains favorable,” added Kane. “The continuation of strong underlying demand trends across our core markets, benefits from our high-return capital projects and differentiated product portfolio, and our operational agility are all supporting expected record earnings and cash flow in 2021.
“We are approaching the five-year anniversary of our spin-off, and our organization’s collective efforts throughout this time have positioned the company for long-term success. We are excited to share more about our ability to deliver strong and sustainable shareholder returns at our upcoming Investor Day scheduled for September 28,” he said.
Six-month net income was $72.3 million ($2.51 per share) on sales of $814.1 million, up from $20 million ($0.71 per share) and $535.7 million, respectively. EBITDA was $131 million, up from $59.4 million.