Westlake Corporation, a global manufacturer and marketer of basic chemicals, vinyls, and polymers, has reported net sales of $3.1 billion and net income of $285 million in the third quarter of fiscal 2023 (Q3 FY23). The quarter also saw an EBITDA of $682 million.

The company's performance and essential materials (PEM) division saw a 2 per cent increase in sales volumes from the second quarter, contributing to an overall 4 per cent increase in company sales volumes sequentially. However, year-on-year data reveals a slight decrease, with PEM sales volumes falling 1 per cent and an overall 1 per cent decline in company sales volumes compared to the third quarter of FY22, Westlake said in a press release.

Average sales prices in the PEM division decreased by 10 per cent from the second quarter, with an overall company decrease of 8 per cent sequentially. This downward trend was more pronounced when looking at year-on-year figures, with PEM average sales prices tumbling by 26 per cent, leading to an overall 20 per cent decline in company sales prices compared to the same quarter in the previous year.

PEM's operating income margin was halved to 5 per cent from 10 per cent, and its EBITDA margin contracted to 17 per cent from 20 per cent over the same period. The comparison to the third quarter of FY22 showed a stark decrease, with PEM's operating income margin falling to 5 per cent from 13 per cent and its EBITDA margin dropping to 17 per cent from 21 per cent.

"As we enter the fourth quarter of 2023, weak macroeconomic conditions, including elevated inflation and high interest rates, remain in place driving softer demand for all of our products and low sales prices in our PEM segment. Despite this near-term outlook, we believe our products are well-positioned in each of our segments. PEM volumes and profitability are supported by our North American structural feedstock and energy cost advantage, a high degree of vertical integration and our product diversity,” said Albert Chao, president and chief executive officer.

Fibre2Fashion News Desk (DP)

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