Orbia's net income fell 72% year on year to $80m in the first quarter of this year on the back of a slowdown in demand from a very strong prior year period, the Mexican vinyl producer said.
Lower general purpose polyvinyl chloride (PVC) prices and weaker end markets in the context of the current macroeconomic environment were partially offset by strong demand in Connectivity Solutions and improved pricing across the fluorinated solutions product portfolio.
The decrease in EBITDA and EBITDA margin was due to softer demand across certain markets, particularly in Polymer Solutions, Building and Infrastructure, and Precision Agriculture.
The decrease was partially offset by higher profitability in Connectivity Solutions and Fluorinated Solutions.
"The company remains cautious under the current macroeconomic conditions and market uncertainty, including uncertain ongoing impacts of monetary tightening, exchange rate volatility, inflationary challenges and the war in Ukraine," Orbia said in a statement.
Orbia reaffirmed its EBITDA guidance of USD1.65bn or higher for 2023 and "will continue to refine its guidance as the year progresses".
The company also reaffirmed its capital expenditure guidance in the range of USD600m to USD700m for 2023, which includes maintenance spending and growth-related investments.
We remind, Solvay and Orbia recently announced their entry into a joint venture framework agreement to create a partnership for the production of suspension-grade polyvinylidene fluoride (PVDF), creating the largest capacity in North Americam said the company. As it is further stated in a press release, the joint venture will create the largest PVDF production facility for battery materials in the region. The total investment is estimated around 850 million USD, partially funded by a grant to Solvay from the U.S. Department of Energy for a total of 178 million USD.
mrchub.com