Westlake Corporation, a global manufacturer and marketer of basic chemicals, vinyls, and polymers, has posted net sales of $12.548 billion in fiscal 2023 (FY23), down from $15.794 billion in the previous year. The company's income from operations saw a significant decrease to $729 million in FY23 from $3.050 billion in FY22, reflecting the broader industry and economic pressures.

Net income attributable to Westlake Corporation also fell to $479 million, compared to $2.247 billion reported in FY22. Diluted earnings per common share for the year stood at $3.70, a stark contrast to the $17.34 reported in the prior year. Despite these downturns, EBITDA remained positive at $1.962 billion, though it was down from $4.179 billion in FY22, the company said in a press release.

In the fourth quarter (Q4) of FY23, Westlake Corporation faced heightened challenges, reflected in the net sales of $2.826 billion, compared to $3.299 billion in the corresponding quarter of the previous year. The quarter marked a loss from operations at $552 million, a significant downturn from the income of $327 million reported in the fourth quarter of FY22. This period also saw a net loss attributable to the corporation of $497 million, in contrast to a net income of $232 million in the same quarter of the previous year.

Diluted loss per share was reported at $3.86 in Q4 FY23, compared to earnings of $1.79 per share in Q4 FY22. The quarter's EBITDA was negatively impacted, recording a loss of $235 million, but when excluding identified items amounting to $625 million, the adjusted EBITDA stood at $390 million.

For Q4 FY23, performance and essential materials segment’s loss from operations was $39 million as compared to the fourth quarter of FY22'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.

"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, commercialising new product innovations and leveraging our position as a global low-cost manufacturer. 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.

Fibre2Fashion News Desk (DP)

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