MIAMI – Element Solutions increased its third quarter adjusted EBITDA expectation to at least $95 million, with second half 2020 adjusted EBITDA expected to be more than $185 million.

The company now expects free cash flow of $200 million for 2020.

The firm is experiencing greater than expected momentum in the automotive industry and continued resilience in the electronics market.

“In our end-markets most impacted by Covid-19, the recovery that began in June has accelerated, and in our high-end electronics business, the robust demand we saw in the first half of the year has continued,” said CEO Benjamin Gliklich. “This overall market strength has been amplified by our continued execution on commercial and cost initiatives. Consequently, we are increasing our adjusted EBITDA guidance and now expect to generate at least $95 million of adjusted EBITDA in the third quarter 2020.

“Based on current trends, we expect our key end-markets to be relatively healthy in the fourth quarter as well. Given the magnitude of the recovery we have seen to-date, we anticipate some degree of normal seasonality in the back half of the year. In that context, we expect second half 2020 adjusted EBITDA to be in excess of $185 million. In addition, our improved earnings outlook, combined with the benefit from of our recent successful bond refinancing, has increased our expectation for free cash flow for the full year 2020 from $185 million to $200 million. I am very proud of our team’s work, which has positioned the company well to capitalize on this recovery. We said early on in this pandemic we would emerge stronger, and the evidence of this is mounting.”

Element is the parent of MacDermid Alpha Electronic Solutions.

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