- Record Housing and Infrastructure Products (HIP) annual income
from operations of $710 million with a 17% income from operations
margin and a 23% EBITDA margin
- Generated $2.3 billion of net cash from operating activities
and $1.3 billion of free cash flow in 2023
- Performance and Essential Materials (PEM) results impacted by
Identified Items totaling $625 million
Westlake Corporation (NYSE: WLK) (the "Company" or "Westlake")
today announced fourth quarter and full year 2023 results.
SUMMARY FINANCIAL
HIGHLIGHTS ($ in millions except per share data and
percentages)
Three Months Ended
Twelve Months Ended
December 31,
September 30,
December 31,
December 31,
2023
2023
2022
2023
2022
Westlake Corporation
Net sales
$
2,826
$
3,115
$
3,299
$
12,548
$
15,794
Income (loss) from operations
$
(552
)
$
349
$
327
$
729
$
3,050
Net income (loss) attributable to Westlake
Corporation
$
(497
)
$
285
$
232
$
479
$
2,247
Diluted earnings (loss) per common
share
$
(3.86
)
$
2.20
$
1.79
$
3.70
$
17.34
EBITDA
$
(235
)
$
682
$
619
$
1,962
$
4,179
Identified Items (1)
$
625
$
—
$
—
$
625
$
—
EBITDA excl. Identified Items
$
390
$
682
$
619
$
2,587
$
4,179
EBITDA margin (2)
14%
22%
19%
21%
26%
Performance and Essential Materials
("PEM") Segment
Net sales
$
1,880
$
1,971
$
2,361
$
8,336
$
11,008
Income (loss) from operations
$
(664
)
$
105
$
219
$
59
$
2,416
EBITDA
$
(424
)
$
339
$
443
$
965
$
3,237
Identified Items (1)
$
625
$
—
$
—
$
625
$
—
EBITDA excl. Identified Items
$
201
$
339
$
443
$
1,590
$
3,237
EBITDA margin (2)
11%
17%
19%
19%
29%
Housing and Infrastructure Products
("HIP") Segment
Net sales
$
946
$
1,144
$
938
$
4,212
$
4,786
Income from operations
$
121
$
256
$
68
$
710
$
675
EBITDA
$
173
$
327
$
133
$
949
$
955
EBITDA margin
18%
29%
14%
23%
20%
________________
(1) "Identified Items" include a $475 million non-cash impairment
charge and a $150 million charge to fully resolve certain liability
claims
(2) Excludes Identified Items
BUSINESS HIGHLIGHTS
In the fourth quarter of 2023, Westlake reported net sales of
$2.8 billion, a net loss of $497 million, or $3.86 per share, and
EBITDA (earnings before interest expense, income taxes,
depreciation and amortization) of ($235) million. Earnings in the
fourth quarter were impacted by a non-cash impairment charge of
$475 million related to the Company's base epoxy resin assets in
The Netherlands and the goodwill associated with our epoxy business
as well as the previously disclosed $150 million ($115 million
after-tax) charge related to a final settlement to fully resolve
certain liability claims that are currently not being covered by
certain of our excess carriers (the "Identified Items"), which are
included in the Performance and Essential Materials segment
financial results. Excluding the Identified Items, fourth quarter
of 2023 net income attributable to Westlake was $93 million and
EBITDA was $390 million. Earnings per share excluding the
Identified Items were $0.72 compared to $1.79 in the prior-year
period, and $2.20 in the prior quarter, reflecting generally lower
sales prices, particularly for caustic soda, PVC resin and epoxy
resin.
For the full year of 2023, Westlake reported net sales of $12.5
billion, net income of $479 million and EBITDA of $2.0 billion.
Excluding the Identified Items, full year 2023 net income was $1.1
billion and EBITDA was $2.6 billion. Compared to the prior-year
financial results, the Company's 2023 results were negatively
impacted by lower product pricing and margins, particularly in PEM,
and lower sales volume, particularly in HIP.
Performance and Essential Materials fourth quarter average sales
price decreased 8% from the third quarter of 2023 while Housing and
Infrastructure Products average sales price decreased 1%
quarter-over-quarter. Overall sales prices for the Company
decreased 6% sequentially from the previous quarter.
Sales volumes for Performance and Essential Materials in the
fourth quarter increased 4% from the third quarter of 2023 while
Housing and Infrastructure Products sales volumes reflected a
typical seasonal decline of 16% quarter-over-quarter. Overall sales
volumes for the Company decreased 4% sequentially from the previous
quarter.
EXECUTIVE COMMENTARY
"While global macroeconomic conditions were challenging in 2023,
Westlake was able to achieve the second highest annual sales in our
history by servicing our customers' needs, commercializing new
product innovations and leveraging our position as a global
low-cost manufacturer. Despite significant headwinds from rising
mortgage rates and lower new home construction, our Housing and
Infrastructure Products segment grew its income from operations
delivering a 23% EBITDA margin for the year; however, financial
results in our Performance and Essential Materials segment were
negatively impacted by continuing weak global industrial and
manufacturing activity, sustained high operating costs in Europe
and significant imports of material from Asia," said Albert Chao,
President and Chief Executive Officer.
"Thus far in 2024, global macroeconomic conditions are largely
unchanged from the fourth quarter of 2023. For the full year of
2024 we expect relatively healthy consumer spending in the U.S.,
supported by a strong labor market and moderating interest rates,
to drive modest growth in HIP segment sales volume. In our PEM
segment, we are not expecting further deterioration as we have
recently seen some signs of stabilization in both sales prices and
volumes in both domestic and export markets for most of our
products. Our focus for PEM in 2024 will be on structural cost
improvement in Europe; improving the reliability and efficiency of
our plants; and further commercializing new product innovations. We
believe that these efforts will have us well positioned as global
industrial and manufacturing demand improves," concluded Mr.
Chao.
RESULTS
Asset Impairment
During the fourth quarter of 2023, the Company recorded a $475
million non-cash impairment charge in the Performance and Essential
Materials segment related to base epoxy resin assets in The
Netherlands and the associated goodwill of the global epoxy
business acquired from Hexion Inc. in February 2022. This
impairment charge was driven by the rapid deterioration in global
epoxy markets experienced over the past year as large global
capacity additions met with weak global demand at a time of rapidly
increasing operating costs, especially in our European
operations.
Consolidated Results
(Unless otherwise noted the financial numbers below exclude the
Identified Items)
For the three months ended December 31, 2023, the Company
reported quarterly net income attributable to Westlake of $93
million, or $0.72 per share, on net sales of $2,826 million. The
year-over-year decrease in net income of $139 million was primarily
due to lower average selling prices and margins and restructuring
costs of $22 million. These impacts were partially offset by higher
sales volume.
Fourth quarter 2023 net income attributable to Westlake of $93
million decreased by $192 million sequentially as compared to the
third quarter of 2023. The sequential decrease in net income
compared to the prior quarter was primarily due to lower sales
prices in Essential Materials and seasonally lower Housing and
Infrastructure Products sales volume. These impacts were partially
offset by higher Performance and Essential Materials sales
volume.
EBITDA of $390 million for the fourth quarter of 2023 decreased
by $229 million compared to fourth quarter 2022 EBITDA of $619
million. Fourth quarter 2023 EBITDA decreased by $292 million
compared to third quarter 2023 EBITDA of $682 million.
For the full year of 2023, net income attributable to Westlake
of $1.1 billion decreased by $1.1 billion. Income from operations
of $1.4 billion for the full year of 2023 decreased by $1.7 billion
as compared to income from operations of $3.1 billion for the full
year of 2022. The decreases in net income and income from
operations were primarily due to generally lower average sales
prices, particularly in Performance and Essential materials; lower
sales volume, particularly in Housing and Infrastructure Products;
increased maintenance downtime; and restructuring costs and other
items.
Cash and Debt
Net cash provided by operating activities was $573 million for
the fourth quarter of 2023 and $2,336 million for the full year of
2023. Capital expenditures for the fourth quarter and full year of
2023 were $282 million and $1,034 million, respectively. For the
fourth quarter and full year of 2023, free cash flow (net cash
provided by operating activities less capital expenditures) was
$291 million and $1,302 million, respectively. The Company's cash
and cash equivalents balance increased by $1,076 million to $3,304
million in 2023 while total debt increased by $27 million to $4,906
million.
A reconciliation of EBITDA to net income, income from operations
(including and excluding Identified Items) and net cash provided by
operating activities as well as a reconciliation of free cash flow
to net cash flow provided by operating activities can be found in
the financial schedules at the end of this press release.
Performance and Essential Materials Segment
(Unless otherwise noted the financial numbers below exclude the
Identified Items)
For the fourth quarter of 2023, Performance and Essential
Materials loss from operations was $39 million as compared to the
fourth quarter of 2022's income from operations of $219 million.
This year-over-year decrease of $258 million was due to lower
average selling prices for most of our major products, particularly
for caustic soda, PVC resin and epoxy resin. This negative impact
was partially offset by higher sales volume.
Sequentially, Performance and Essential Materials income from
operations decreased by $144 million as compared to the third
quarter of 2023. This decrease in income from operations versus the
prior quarter was primarily driven by lower average selling prices
and unfavorable sales mix. These unfavorable factors were partially
offset by higher sales volume, particularly for chlorovinyls.
For the full year of 2023, Performance and Essential Materials
net sales of $8.3 billion decreased by $2.7 billion as compared to
2022. Performance Materials net sales of $4.7 billion decreased by
$2.3 billion due to lower average selling prices, particularly for
PVC resin, polyethylene and epoxy resins, and lower sales volume,
particularly for epoxy resins. Essential Materials net sales of
$3.7 billion decreased by $0.3 billion from 2022 primarily due to
lower caustic soda average selling prices and sales volume.
Performance and Essential Materials income from operations of $684
million decreased by $1.7 billion as compared to the full year of
2022. This decrease in income from operations versus the prior-year
was primarily driven by lower average selling prices and
margins.
Housing and Infrastructure Products Segment
For the fourth quarter of 2023, Housing and Infrastructure
Products income from operations of $121 million increased by $53
million as compared to the fourth quarter of 2022. The
year-over-year increase was the result of higher sales volume,
particularly for pipe and fittings, and lower material costs.
Sequentially, Housing and Infrastructure Products income from
operations decreased by $135 million as compared to the third
quarter of 2023. This decrease in income from operations versus the
prior quarter was primarily due to seasonally lower sales volume
and approximately $20 million of costs related to plant closures
resulting from the Company's manufacturing footprint optimization
efforts.
For the full year of 2023, Housing and Infrastructure Products
net sales of $4.2 billion decreased by $0.6 billion as compared to
2022. Housing Products net sales of $3.5 billion decreased by $0.4
billion due to generally lower sales volume as a result of the
downturn in U.S. residential construction. Infrastructure Products
net sales of $0.7 billion decreased by $0.2 billion as compared to
2022 due to both lower selling prices and sales volume. Housing and
Infrastructure Products income from operations of $710 million
increased by $35 million as compared to the full year of 2022
primarily due to lower materials costs.
Forward-Looking Statements
The statements in this release and the related teleconference
relating to matters that are not historical facts, including
statements regarding our outlook for the performance of our
business segments, consumer spending in the U.S., global
macroeconomic conditions, continuing stabilization of sales prices
and volumes in both domestic and export markets for most of our
products, trends in labor markets and interest rates, our ability
to weather economic volatility, higher energy prices, our market
position, our ability to improve reliability and efficiency of our
plants, further commercialization of new product renovations, our
cost savings initiatives, global demand for our products, and our
ability to deliver greater value to customers and investors as
general economic conditions improve are forward-looking
statements.
These forward-looking statements are subject to significant
risks and uncertainties. Actual results could differ materially,
based on factors including, but not limited to: general economic
and business conditions; the cyclical nature of the industry; the
availability, cost and volatility of raw materials and energy;
uncertainties associated with the United States, European and
worldwide economies, including those due to political tensions and
conflict in the Middle East, Russia and Ukraine and elsewhere;
uncertainties associated with pandemic infectious diseases;
uncertainties associated with climate change; the potential impact
on demand for ethylene, polyethylene and polyvinyl chloride due to
initiatives such as recycling and customers seeking alternatives to
polymers; current and potential governmental regulatory actions in
the United States and other countries; industry production capacity
and operating rates; the supply/demand balance for Westlake's
products; competitive products and pricing pressures; instability
in the credit and financial markets; access to capital markets;
terrorist acts; operating interruptions; changes in laws and
regulations, including trade policies; technological developments;
information systems failures and cyberattacks; foreign currency
exchange risks; our ability to implement our business strategies;
creditworthiness of our customers; the effect and results of
litigation and settlements of litigation; and other risk factors.
For more detailed information about the factors that could cause
actual results to differ materially, please refer to Westlake's
Annual Report on Form 10-K for the year ended December 31, 2022,
which was filed with the SEC in February 2023, and Quarterly Report
on Form 10-Q for the quarter ended September 30, 2023, which was
filed with the SEC in November 2023.
Use of Non-GAAP Financial Measures
This release makes reference to certain "non-GAAP" financial
measures, such as EBITDA, free cash flow and other measures that
exclude the effects of the Identified Items, as defined in
Regulation G of the U.S. Securities Exchange Act of 1934, as
amended. For this purpose, a non-GAAP financial measure is
generally defined by the Securities and Exchange Commission ("SEC")
as a numerical measure of a registrant's historical or future
financial performance, financial position or cash flows that (1)
excludes amounts, or is subject to adjustments that have the effect
of excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance with GAAP
in the statement of income, balance sheet or statement of cash
flows (or equivalent statements) of the registrant; or (2) includes
amounts, or is subject to adjustments that have the effect of
including amounts, that are excluded from the most directly
comparable measure so calculated and presented. We report our
financial results in accordance with U.S. generally accepted
accounting principles ("U.S. GAAP"), but believe that certain
non-GAAP financial measures, such as EBITDA, free cash flow and
measures that exclude the effects of the Identified Items, provide
useful supplemental information to investors regarding the
underlying business trends and performance of the Company's ongoing
operations and are useful for period-over-period comparisons of
such operations. These non-GAAP financial measures should be
considered as a supplement to, and not as a substitute for, or
superior to, the financial measures prepared in accordance with
U.S. GAAP. A reconciliation of (i) EBITDA to net income, income
from operations and net cash provided by operating activities, (ii)
free cash flow to net cash provided by operating activities, and
(iii) other measures reflecting adjustments for the effects of the
Identified Items can be found in the financial schedules at the end
of this press release.
About Westlake
Westlake is a global manufacturer and supplier of materials and
innovative products that enhance life every day. Headquartered in
Houston, with operations in Asia, Europe and North America, we
provide the building blocks for vital solutions — from housing and
construction, to packaging and healthcare, to automotive and
consumer. For more information, visit the Company's web site at
www.westlake.com.
Westlake Corporation Conference Call Information:
A conference call to discuss Westlake Corporation's fourth
quarter and full year 2023 results will be held Tuesday, February
20, 2024 at 11:00 AM Eastern Time (10:00 AM Central Time). To
access the conference call, it is necessary to pre-register at
https://register.vevent.com/register/BIb0686f53c7f44babb49b408c59ec0d23.
Once registered, you will receive a phone number and unique PIN
number.
A replay of the conference call will be available beginning two
hours after its conclusion. The conference call and replay will be
available via webcast at
https://edge.media-server.com/mmc/p/fg9k946y.
WESTLAKE CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
(In millions of dollars,
except per share data and share amounts)
Net sales
$
2,826
$
3,299
$
12,548
$
15,794
Cost of sales
2,627
2,732
10,329
11,721
Gross profit
199
567
2,219
4,073
Selling, general and administrative
expenses
224
200
865
835
Impairment of goodwill and long-lived
assets
475
—
475
—
Amortization of intangibles
30
31
122
155
Restructuring, transaction and
integration-related costs
22
9
28
33
Income (loss) from operations
(552
)
327
729
3,050
Interest expense
(41
)
(43
)
(165
)
(177
)
Other income, net
35
21
136
73
Income (loss) before income taxes
(558
)
305
700
2,946
Provision for (benefit from) income
taxes
(71
)
57
178
649
Net income (loss)
(487
)
248
522
2,297
Net income attributable to noncontrolling
interests
10
16
43
50
Net income (loss) attributable to
Westlake Corporation
$
(497
)
$
232
$
479
$
2,247
Earnings (loss) per common share
attributable to Westlake Corporation:
Basic
$
(3.86
)
$
1.80
$
3.73
$
17.46
Diluted
$
(3.86
)
$
1.79
$
3.70
$
17.34
Weighted average common shares
outstanding:
Basic
128,165,690
127,532,119
127,806,317
127,970,445
Diluted
128,165,690
128,376,159
128,598,441
128,845,562
WESTLAKE CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
December 31,
2023
2022
(In millions of
dollars)
ASSETS
Current assets
Cash and cash equivalents
$
3,304
$
2,228
Accounts receivable, net
1,601
1,801
Inventories
1,622
1,866
Prepaid expenses and other current
assets
82
78
Total current assets
6,609
5,973
Property, plant and equipment, net
8,519
8,477
Other assets, net
5,907
6,100
Total assets
$
21,035
$
20,550
LIABILITIES AND EQUITY
Current liabilities (accounts payable and
accrued and other liabilities)
$
2,491
$
2,298
Current portion of long-term debt, net
299
—
Long-term debt, net
4,607
4,879
Other liabilities
2,874
2,908
Total liabilities
10,271
10,085
Total Westlake Corporation stockholders'
equity
10,241
9,931
Noncontrolling interests
523
534
Total equity
10,764
10,465
Total liabilities and equity
$
21,035
$
20,550
WESTLAKE CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Twelve Months Ended December
31,
2023
2022
(In millions of
dollars)
Cash flows from operating
activities
Net income
$
522
$
2,297
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
1,097
1,056
Impairment of goodwill and long-lived
assets
475
—
Deferred income taxes
(175
)
(21
)
Net loss on disposition and others
85
87
Other balance sheet changes
332
(24
)
Net cash provided by operating
activities
2,336
3,395
Cash flows from investing
activities
Acquisition of business, net of cash
acquired
—
(1,203
)
Additions to investments in unconsolidated
subsidiaries
(25
)
(180
)
Additions to property, plant and
equipment
(1,034
)
(1,108
)
Other, net
22
12
Net cash used for investing activities
(1,037
)
(2,479
)
Cash flows from financing
activities
Distributions to noncontrolling
interests
(54
)
(60
)
Dividends paid
(221
)
(169
)
Proceeds from exercise of stock
options
44
18
Repayment of senior notes
—
(250
)
Repurchase of common stock for
treasury
(23
)
(101
)
Other, net
9
(25
)
Net cash used for financing activities
(245
)
(587
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
19
(24
)
Net increase in cash, cash equivalents and
restricted cash
1,073
305
Cash, cash equivalents and restricted cash
at beginning of period
2,246
1,941
Cash, cash equivalents and restricted cash
at end of period
$
3,319
$
2,246
WESTLAKE CORPORATION
SEGMENT INFORMATION
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
(In millions of
dollars)
Net external sales
Performance and Essential Materials
Performance Materials
$
1,107
$
1,286
$
4,656
$
6,964
Essential Materials
773
1,075
3,680
4,044
Total Performance and Essential
Materials
1,880
2,361
8,336
11,008
Housing and Infrastructure Products
Housing Products
795
758
3,494
3,864
Infrastructure Products
151
180
718
922
Total Housing and Infrastructure
Products
946
938
4,212
4,786
$
2,826
$
3,299
$
12,548
$
15,794
Income (loss) from operations
Performance and Essential Materials
$
(664
)
$
219
$
59
$
2,416
Housing and Infrastructure Products
121
68
710
675
Corporate and other
(9
)
40
(40
)
(41
)
$
(552
)
$
327
$
729
$
3,050
Depreciation and amortization
Performance and Essential Materials
$
229
$
212
$
881
$
784
Housing and Infrastructure Products
50
57
207
263
Corporate and other
3
2
9
9
$
282
$
271
$
1,097
$
1,056
Other income, net
Performance and Essential Materials
$
11
$
12
$
25
$
37
Housing and Infrastructure Products
2
8
32
17
Corporate and other
22
1
79
19
$
35
$
21
$
136
$
73
WESTLAKE CORPORATION
RECONCILIATION OF EBITDA TO
NET INCOME AND INCOME FROM OPERATIONS AND
NET CASH PROVIDED BY OPERATING
ACTIVITIES (INCLUDING AND EXCLUDING IDENTIFIED ITEMS)
(Unaudited)
Three Months Ended September
30,
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2023
2022
2023
2022
(In millions of dollars,
except percentages)
Net cash provided by operating
activities
$
696
$
573
$
835
$
2,336
$
3,395
Changes in operating assets and
liabilities and other
(417
)
(1,168
)
(652
)
(1,989
)
(1,119
)
Deferred income taxes
16
108
65
175
21
Net income (loss)
295
(487
)
248
522
2,297
Add:
Impairment charge
—
475
—
475
—
Litigation settlement charge,
after-tax
—
115
—
115
—
Net income excl. Identified
Items
$
295
$
103
$
248
$
1,112
$
2,297
Net income (loss)
$
295
$
(487
)
$
248
$
522
$
2,297
Less:
Other income, net
56
35
21
136
73
Interest expense
(40
)
(41
)
(43
)
(165
)
(177
)
Benefit from (provision for) income
taxes
(70
)
71
(57
)
(178
)
(649
)
Income (loss) from operations
349
(552
)
327
729
3,050
Add:
Impairment charge
—
475
—
475
—
Litigation settlement charge, pre-tax
—
150
—
150
—
Income from operations excl. Identified
Items
349
73
327
1,354
3,050
Add:
Depreciation and amortization
277
282
271
1,097
1,056
Other income, net
56
35
21
136
73
EBITDA excl. Identified Items
682
390
619
2,587
4,179
Less:
Impairment charge
—
475
—
475
—
Litigation settlement charge, pre-tax
—
150
—
150
—
EBITDA
$
682
$
(235
)
$
619
$
1,962
$
4,179
Net external sales
$
3,115
$
2,826
$
3,299
$
12,548
$
15,794
Operating income (loss) margin
11%
(20)%
10%
6%
19%
Operating income margin excl.
Identified Items
11%
3%
10%
11%
19%
EBITDA margin
22%
(8)%
19%
16%
26%
EBITDA margin excl. Identified
Items
22%
14%
19%
21%
26%
WESTLAKE CORPORATION
RECONCILIATION OF DILUTED
EARNINGS PER COMMON SHARE TO DILUTED EARNINGS PER COMMON SHARE
EXCLUDING IDENTIFIED ITEMS
(Unaudited)
Three Months Ended September
30,
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2023
2022
2023
2022
(per share data)
Diluted earnings (loss) per common
share
attributable to Westlake
Corporation
$
2.20
$
(3.86
)
$
1.79
$
3.70
$
17.34
Add:
Impairment charge
—
3.69
—
3.68
—
Litigation settlement charge
—
0.89
—
0.89
—
Diluted earnings per common share
attributable
to Westlake Corporation excl.
Identified Items
$
2.20
$
0.72
$
1.79
$
8.27
$
17.34
WESTLAKE CORPORATION
RECONCILIATION OF FREE CASH
FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES
(Unaudited)
Three Months Ended September
30,
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2023
2022
2023
2022
(In millions of
dollars)
Net cash provided by operating
activities
$
696
$
573
$
835
$
2,336
$
3,395
Less:
Additions to property, plant and
equipment
245
282
297
1,034
1,108
Free cash flow
$
451
$
291
$
538
$
1,302
$
2,287
WESTLAKE CORPORATION
RECONCILIATION OF PEM SEGMENT
EBITDA TO INCOME FROM OPERATIONS (INCLUDING AND EXCLUDING
IDENTIFIED ITEMS)
(Unaudited)
Three Months Ended September
30,
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2023
2022
2023
2022
(In millions of dollars,
except percentages)
Performance and Essential Materials
Segment
Income (loss) from operations
$
105
$
(664
)
$
219
$
59
$
2,416
Add:
Impairment charge
—
475
—
475
—
Litigation settlement charge
—
150
—
150
—
Income (loss) from operations excl.
Identified Items
105
(39
)
219
684
2,416
Add:
Depreciation and amortization
225
229
212
881
784
Other income, net
9
11
12
25
37
EBITDA excl. Identified Items
339
201
443
1,590
3,237
Less:
Impairment charge
—
475
—
475
—
Litigation settlement charge
—
150
—
150
—
EBITDA
$
339
$
(424
)
$
443
$
965
$
3,237
Net external sales
$
1,971
$
1,880
$
2,361
$
8,336
$
11,008
Operating income (loss) margin
5%
(35)%
9%
1%
22%
Operating income (loss) margin excl.
Identified Items
5%
(2)%
9%
8%
22%
EBITDA margin
17%
(23)%
19%
12%
29%
EBITDA margin excl. Identified
Items
17%
11%
19%
19%
29%
WESTLAKE CORPORATION
RECONCILIATION OF HIP SEGMENT
EBITDA TO INCOME FROM OPERATIONS
(Unaudited)
Three Months Ended September
30,
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2023
2022
2023
2022
(In millions of dollars,
except percentages)
Housing and Infrastructure Products
Segment
Income from operations
$
256
$
121
$
68
$
710
$
675
Add:
Depreciation and amortization
51
50
57
207
263
Other income, net
20
2
8
32
17
EBITDA
$
327
$
173
$
133
$
949
$
955
Net external sales
$
1,144
$
946
$
938
$
4,212
$
4,786
Operating income margin
22%
13%
7%
17%
14%
EBITDA margin
29%
18%
14%
23%
20%
WESTLAKE CORPORATION
SUPPLEMENTAL
INFORMATION
Product Sales Price and Volume
Variance by Operating Segments
Fourth Quarter 2023 vs. Fourth
Quarter 2022
Fourth Quarter 2023 vs. Third
Quarter 2023
Average
Sales Price
Volume
Average
Sales Price
Volume
Performance and Essential Materials
-27%
+6%
-8%
+4%
Housing and Infrastructure Products
-10%
+11%
-1%
-16%
Company
-22%
+7%
-6%
-4%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240220086157/en/
Contact—(713) 960-9111 Investors—Steve Bender Media—L. Benjamin
Ederington
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