MIAMI – Element Solutions, the parent company of laser drill maker ESI, reported second quarter net sales from continuing operations of $457 million, down 9% year-over-year.

The electronics business posted net sales down 9% to $268 million. Adjusted EBITDA for the segment was $60 million, a decrease of 7%.

Total net income from continuing operations was $15 million, compared to a loss of $50 million in the same period last year.

Total adjusted EBITDA for the second quarter was $101 million, a decrease of 4% year-over-year on a constant currency basis.

Cashflow from operating activities was $37 million during the quarter, while year-to-date free cashflow on an adjusted basis was approximately $86 million.

“In a challenging macroeconomic environment this quarter, we demonstrated the resilience of our business model and stability of our cash flow,” said Benjamin Gliklich, CEO. “Our end-markets were impacted by headwinds we expected entering the quarter in electronics and automotive, specifically in Asia. We anticipated this and have managed our cost footprint to reflect the commercial reality year to date. Through our continued execution against corporate cost savings and cost containment in the business, we were pleased to see our adjusted EBITDA margin increase, despite the pressure on the top line.

“While we still expect a seasonal pickup in the third quarter, we are not counting on a strong recovery, as geopolitical uncertainty continues to weigh on demand in the underlying market in the second half. Taking all of this into account, we are reducing our full-year net sales expectations to a decline of between 1% and 3% on an organic basis. While this is well below our expectation for long-term average growth, it reflects out-performance relative to our end-markets, which
we expect to decline in the mid-single digits this year. Year to date, we have generated approximately $86 million of free cash flow on an adjusted basis and remain on track to generate approximately $200 million of free cash flow on an adjusted basis this year.”

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