AdvanSix, Parsippany, N.J., reported second-quarter net income of $65.2 million ($2.23 per diluted share) on sales of $583.7 million, up from the year-ago $44.1 million ($1.53 per share) and $437.7 million, respectively. Adjusted EBITDA was $105.4 million, up from $79.7 million.
“Our robust second-quarter results, featuring top and bottom line growth sequentially and year-over-year, reflect the continued strength and advantage of our business model and diverse product portfolio,” said Erin Kane, AdvanSix President and CEO. “In the quarter, strong commercial performance to meet customer demand more than offset higher inflation, as well as lower sales volume primarily due to unfavorable weather conditions driving a reduction of in-season fertilizer demand.
“Our healthy cash flow performance reflects the quality of our earnings while supporting continued reinvestment in the business and return of cash to shareholders, including opportunistic share repurchases and a 16% increase in our quarterly cash dividend. Our integration of U.S. Amines is progressing very well as expected, adding additional value to our portfolio,” he added.
Second-quarter ammonium sulfate sales of $205.9 million represented 35% of the company’s total sales of $583.7 million, up from the year-ago $100 million, or 23% of $437.7 million.
AdvanSix said higher pricing across ammonium sulfate and nylon product lines was partially offset by lower prices in chemical intermediates, particularly acetone. Sales volumes decreased 4%, driven primarily by unfavorable weather conditions, resulting in a reduction of in-season fertilizer demand and lower production output compared to the prior year.
“Looking forward, we expect continued healthy North America demand for nylon and chemical intermediates, as well as favorable agriculture, nitrogen and sulfur fertilizer industry fundamentals particularly into next year’s planting season,” said Kane. “While the macro environment continues to be dynamic, we have substantially increased the earnings power of this business.
“We are well-positioned to fuel future earnings and cash flow performance with continued contributions from high-return growth and cost savings projects, an improved portfolio mix with over $200 million in sales from differentiated products, and strong and disciplined capital deployment,” he added. “Our core strategies continue to support expectations for AdvanSix’s long-term, sustainable performance.”
Six-month net income was $128.2 million ($4.37 per share) on sales of $1.06 billion, up from the year-ago $72.3 million ($2.51 per share) and $814.1 million, respectively. Adjusted EBITDA was $208.6 million, up from $137.3 million.