Westlake Corp. Reports Third-Quarter 2023 Results
Westlake Corp. announced its third-quarter 2023 financial results. In the third-quarter of 2023, Westlake achieved quarterly net sales of $3.1 billion, quarterly net income of $285 million and quarterly EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of $682 million, including reported record housing and infrastructure products (HIP) segment quarterly income from operations of $256 million and EBITDA of $327 million.
Sales volumes for HIP increased 7% while performance and essential materials (PEM) sales volumes increased 2% from the second-quarter of 2023. Overall sales volumes for the company increased 4% sequentially from the previous quarter. When compared to the third-quarter of 2022, HIP sales volumes were unchanged while PEM sales volumes decreased 1%, resulting in a 1% overall sales volume decline for the company.
HIP average sales prices decreased 5% while PEM average sales prices decreased 10% from the second-quarter of 2023. Overall sales prices for the Company decreased 8% sequentially from the previous quarter. When compared to the third-quarter of 2022, HIP average sales prices decreased 8% while PEM average sales prices decreased 26%, resulting in a 20% overall decline in sales prices for the company.
PEM income from operations for the third-quarter of 2023 of $105 million decreased by $248 million from third-quarter 2022 income from operations of $353 million. This decrease in income from operations versus the prior-year period was reportedly due to lower average sales prices and integrated margins for most of our major products, particularly for PVC, caustic soda and epoxy resins. While overall sales volumes were in-line with the prior-year period, PEM’s average sales prices were negatively impacted by both market price declines and an unfavorable sales mix due to higher sales volumes in export markets where pricing is typically lower. As a result, PEM's segment operating margin declined from 13% in the third-quarter of 2022 to 5% in the third-quarter of 2023 and EBITDA margin decreased from 21% to 17% over the same period of time.
Sequentially, PEM’s income from operations decreased by $110 million as compared to the second-quarter of 2023. The sequential decrease was largely reportedly due to lower average sales prices and integrated margins, especially for caustic soda, and certain charges incurred during the quarter, which were only partially offset by higher PVC global operating rates and sales volumes.
PEM income from operations for the third-quarter of 2023 of $105 million decreased by $248 million from third-quarter 2022 income from operations of $353 million. This decrease in income from operations versus the prior-year period was reportedly due to lower average sales prices and integrated margins for most of our major products, particularly for PVC, caustic soda and epoxy resins. While overall sales volumes were in-line with the prior-year period, PEM’s average sales prices were negatively impacted by both market price declines and an unfavorable sales mix due to higher sales volumes in export markets where pricing is typically lower. As a result, PEM’s segment operating margin declined from 13% in the third quarter of 2022 to 5% in the third quarter of 2023 and EBITDA margin decreased from 21% to 17% over the same period of time.
For more information, visit: www.westlake.com.
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