Westlake Corp. announced fourth-quarter and record full-year 2022 results. For the full year of 2022, Westlake reported net sales of $15.8 billion, net income of $2.2 billion, and EBITDA of $4.2 billion. These results were reportedly driven by a strong macroeconomic environment in the first half of 2022. Economic conditions deteriorated mid-year leading to a reduction in demand from a downturn in global industrial and North American housing activity, which continued throughout the fourth quarter of 2022.

In the fourth quarter of 2022, Westlake achieved net sales of $3.3 billion, net income of $232 million, and EBITDA of $619 million. Earnings per share were $1.79 compared to $4.98 in the prior-year period, and $3.10 in the prior quarter, reflecting generally lower sales prices, unfavorable sales mix changes, elevated energy costs, and lower volumes in certain product categories. While global feedstock and energy costs receded from their recent peaks, they remained elevated and continued to pressure margins. Meanwhile, on a positive note, global markets for caustic soda remained tight with higher sales prices supporting earnings in the United States and improving profitability in Europe.

“2022 was a monumental year for Westlake as we posted record full-year sales and net income and added Westlake epoxy to our performance materials portfolio, while further integrating the businesses acquired in the second half of 2021 into our housing and infrastructure products segment,” said Albert Chao, president and chief executive officer. “Our full-year results reflect the strong start to the year, characterized by tight supply-demand conditions and improving profitability across our businesses, which gave way to softer market conditions in the second half of the year as higher global energy costs and increasing interest rates negatively impacted buyer sentiment and demand for our products.”

Performance and essential materials average sales price decreased 9% from the third-quarter of 2022, while housing and infrastructure products average sales prices were flat quarter-over-quarter. Overall sales prices for the company decreased 7% sequentially from the previous quarter. Sales volumes for performance and essential materials decreased 4% from the third-quarter of 2022, while housing and infrastructure products sales volumes decreased 24% quarter-over-quarter. Overall sales volumes for the company decreased 10% sequentially from the previous quarter.

For more information, visit: www.westlake.com.