North Charleston, South Carolina – Ingevity, which makes speciality caprolactone polyols, generated sales of $331.7m in the third quarter of 2020. This is down 7.8% on the same period last year.
Adjusted EBITDA across the business rose by 11.9% to $127.6m in the third quarter of 2020.
Forston: strong rebounds
'Ingevity’s third quarter results were driven by strong rebounds in automotive sales and production worldwide versus a weak second quarter,' said CEO John Forston. 'Coronavirus particularly impacted our performance chemicals businesses. Nonetheless, our adjusted EBITDA and adjusted EBITDA margin were records for the third quarter.'
In the performance chemicals business, which includes speciality caprolactone polyols, sales declined by 18.2% to £187.9m between the third quarter of 2019 and the third quarter of 2020. This compares with $229.7m in the equivalent period in 2019.
Adjusted EBITDA in the division fell by 21.1% to $47.2m in the third quarter of 2020. This compares with $59.8m in the equivalent period in 2019.
The fall in earnings was a result of lower volumes, higher manufacturing costs as plant occupancy fell, and unfavourable exchange rates. Segment EBITDA decreased by $12.6m primarily because of a decline in volume of $17.2m, higher manufacturing costs of $1.7m in the light of reduced plant throughput, and unfavourable foreign currency exchange and increased other miscellaneous costs of $400,000.
These unfavourable operating results were partially offset by favourable pricing and product mix of $1.9m and lower SG&A expenses of $4.8m.
