Sales of Advansix, a manufacturer of nylon 6 polymer resin used to produce engineered plastics, fibres, etc, were down approx by 12 per cent to $314.9 million in Q1 2019 ending March 31, 2019 versus prior year. This included 12 per cent lower raw material pass-through pricing, 3 per cent favourable impact of market-based pricing and 3 per cent lower volume.

The net income of the company was $20.2 million, an increase of $8.6 million versus the prior year. Earnings per share of $0.68 increased 84 per cent versus the prior year, said Advansix in a press release.

“In the first quarter, we successfully navigated through shortages and delivery delays of cumene, our key raw material, maintained our focus on safe and stable operations and generated higher earnings versus the prior year. We once again captured the benefit of improved market-based pricing overall, despite ongoing acetone industry challenges,” said Erin Kane, president and CEO of Advansix. “Our focused efforts and performance have supported smart deployment of capital into high-return growth and cost savings projects, further enhancing our integrated value chain. Further, following a thorough strategic review of our nylon films business, we announced a new strategic alliance with a leading producer of films for the flexible packaging industry and the closure of our Pottsville films plant, which will position us for improved performance in this industry.”

For Q2 2019, the company is targeting strong nylon plant utilisation rates while navigating through uncertain carpet and auto end markets. Nitrogen fertiliser environment is expected to strengthen seasonally through spring planting season where as global acetone supply is expected to lengthen into 2Q19 reflecting Gulf Coast terminal fire disruption and customer force majeures.

Capital Expenditures  for the full year 2019 is expected to be in the range of $140 to $150 million.

The company announced it has entered into a strategic alliance with Oben Group, a leading producer of films for the flexible packaging industry, combining Advansix’s channel to North America with Oben group’s new state-of-the-art manufacturing facility. The company also approved the closure of its Pottsville, Pennsylvania films plant as part of its broader strategic efforts associated with the films product line in North America. The closure is expected to be completed during the third quarter of 2019.

“Our strategic priorities remain centered on driving safe and stable operations, enhancing our long-term growth capabilities, and making smart and disciplined investments in the business to drive higher returns. We’re confident in our ability to build on our advantaged foundation and create value for our shareholders over the long-term,” said Kane. (PC)