Honeywell delivers strong 2Q 2023 results and raises full year 2023 sales

Honeywell delivers strong 2Q 2023 results and raises full year 2023 sales

MOSCOW (MRC) -- Honeywell announced results for 2Q 2023 that met or exceeded the company's guidance, said the company.

The company also raised its full year 2023 organic growth, segment margin, and adjusted earnings per share (EPS) guidance ranges. The company reported 2Q 202 sales growth of 2% year-over-year and organic sales growth of 3% year-over-year, led by double-digit organic sales growth in commercial aerospace, process solutions, and UOP.

Operating margin expanded 270 basis points to 20.6% and segment margin expanded by 150 basis points to 22.4%, with expansion in Safety and Productivity Solutions, Honeywell Building Technologies, and Aerospace. EPS for 2Q 2023 was USD2.22, up by 21% year-over-year, and adjusted EPS was USD2.23, up 6% year over year.

Operating cash flow was USD1.4 bn and free cash flow was USD1.1 bn, driven by strong net income and improved working capital. Full year 2023 sales are now expected to be $36.7-37.3 bn with organic sales growth in the range of 4-6%. Segment margin is now expected to be in the range of 22.4-22.6%, with segment margin expansion of 70-90 basis points. Adjusted EPS is now expected to be in the range of USD9.05-9.25, up by 5 cents on the low end from the prior guidance range.

Operating cash flow is still expected to be in the range of USD4.9-5.3 bn. Free cash flow is still expected to be in the range of USD3.9-4.3 bn, or USD5.1-5.5 bn excluding the net impact of settlements signed in 4Q 2022.

We remind, Chemours Company (Chemours) and Advanced Performance Materials, and Honeywell announced they have engaged with the Interagency for Market Control of the Hellenic Ministry of Development (DIMEA), the Hellenic Police, and Hellenic Customs to stop illegal fluorinated gas (F-gas) refrigerants from entering the European Union (EU) at the Greek border.

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Axalta releases second quarter 2023 results

Axalta releases second quarter 2023 results

MOSCOW (MRC) -- Axalta Coating Systems Ltd today reported net income up 38.1% year over year, to USD60.9 million, on net sales up 4.8%, to USD1.29 billion, said the company.

Adjusted earnings, which exclude some restructuring costs in the year-ago quarter, were down 14.6%, to 35 cents/share, short of analysts’ consensus estimate of 38 cents/share, as reported by S&P Capital IQ. A 6.8% increase in price and product mix boosted sales, offset by a 3.7% decline in volumes due to a software implementation causing operational delays.

“The quarter reflected strong underlying earnings and profitability improvement, particularly in mobility coatings where momentum is building,” said Axalta president and CEO Chris Villavarayan. The operational delays created a sales backlog by the end of the quarter, with a particular impact in the refinish business, Axalta said. Variable costs, meanwhile, declined during the quarter.

Margins are expected to improve as the year progresses. The company “expects mid-to-high single digit variable cost deflation for the second half of the year to mitigate higher operating expenses,” it said.

Performance coatings segment sales were roughly flat year over year, at USD856.0 million, while segment adjusted EBIT fell 5.9%, to USD117.8 million. Improving price and product mix was offset by operational delays impacting volumes, as well as weaker industrial demand. Raw material costs declined modestly, Axalta said.

Mobility coatings segment sales increased 15.5% year over year, to USD437.9 million, while segment adjusted EBIT was up 930.4%, to USD23.7 million. Volume growth of 12.8% drove the increases, and improving price and product mix also boosted results.

We remind, Axalta, a leading global supplier of liquid and powder coatings, broke ground for construction of a state-of-the-art coatings facility in Jilin City, Jilin Province, North China. The 46,000-square-meter new plant will produce mobility coatings to support growing customer demand in China for light vehicles, commercial vehicles, and automotive plastic components. "Our new plant in Jilin is another building block supporting our ambitious growth strategy for our mobility business in China," said Nicolas Franc de Ferriere, Vice President, Mobility, Asia Pacific at Axalta.

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Technip Energies and Enerkem join forces on waste-to-biofuels and circular chemicals technology deployment

Technip Energies and Enerkem join forces on waste-to-biofuels and circular chemicals technology deployment

MOSCOW (MRC) -- Technip Energies and Enerkem Inc. have signed a memorandum of understanding to enter into a Collaboration Agreement aimed at accelerating the deployment of Enerkem’s technology platform for biofuels and circular chemical products from non-recyclable waste materials, said Hydrocarbonprocessing.

Enerkem specializes in the development and commercialization of its groundbreaking gasification technology transforming non-recyclable waste into biofuels, low-carbon fuels and circular chemicals, catering to hard-to-abate sectors such as sustainable aviation and marine fuels. Since 2016, Enerkem has been operating a commercial demonstration scale facility in Alberta, Canada. Additionally, the company is currently involved in the development and construction of new commercial-scale waste-to-methanol facilities in Canada and Europe.

Technip Energies, having successfully executed bio and low-carbon fuels projects worldwide, will contribute its expertise in engineering, technology integration and project delivery to support projects developed by Enerkem. This partnership will enhance Enerkem’s project delivery capacity and speed. Furthermore, the collaboration will focus on strategic efforts to optimize design elements and industrialize the approach through the replication of Enerkem’s designs for future projects.

To expedite the deployment of its technology, Enerkem intends to establish a Development Company (DevCo). The purpose of DevCo is to acquire sites and secure relevant permits for the replicable methanol biorefinery design, supporting the production of bio and low-carbon fuels, as well as circular chemicals.

Dominique Boies, CEO of Enerkem, stated: “We are excited to partner with Technip Energies to accelerate the deployment of Enerkem’s technology in Europe, North America, and the Middle East. Technip Energies’ extensive expertise will enable Enerkem’s clients to benefit from projects speed to market and cost efficiencies, supporting their decarbonization efforts and sustainability goals.”

Bhaskar Patel, SVP Sustainable Fuels, Chemicals and Circularity of Technip Energies, said: “We are pleased to join forces with Enerkem on the deployment of its technology platform to convert waste into sustainable and valuable end products such as biofuels. By leveraging our expertise in engineering, sustainable chemistry and biofuels projects, we will support project execution and Enerkem’s technology deployment.”

We remind, Technip Energies, a leading player in the energy sector, has made a significant investment in Evok Innovation’s Fund II. This cleantech fund is dedicated to supporting the development of hard-tech solutions that contribute to achieving a net-zero future. It focuses on cutting-edge sectors such as low carbon hydrogen, carbon capture and removal, electrification, and critical minerals.

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ART launches catalyst system to produce renewable diesel

ART launches catalyst system to produce renewable diesel

MOSCOW (MRC) -- Advanced Refining Technologies LLC, a joint venture of Chevron and specialty chemicals leader W. R. Grace & Co., launched ENDEAVORTM, a hydroprocessing catalyst solution to produce renewable diesel and sustainable aviation fuel from 100% renewable sources, such as vegetable oils, refined oils, animal fats, and greases, said Hydrocarbonprocessing.

The announcement comes against the backdrop of significant demand growth for renewable transportation fuels.

"ENDEAVORTM catalysts are the culmination of an extensive R&D program and have already demonstrated top-tier performance in several refinery applications,” said Nathan Ergonul, ART’s Managing Director. “ART will continue to invest in this exciting segment, building on our technology leadership in contaminant removal and dewaxing to enable customers to maximize yields and profits from a wider variety of biofeeds. Our collaboration with Chevron Lummus Global (CLG), a leading process licensor, allows us to fully optimize the renewables process."

Catalysts play a critical role in the hydroprocessing of renewable feedstocks. Catalysts for contaminant capture, deoxygenation and isomerization are key for processing a wider range of biofeeds to increase product yields and to ensure product specifications are met. The ENDEAVORTM catalyst system consists of EnRich guard and hydrotreating catalysts and includes Chevron's industry leading EnHanceTM isomerization catalysts, all developed specifically for processing renewable feeds.

Renewable fuels such as RD and SAF are expected to play a key role in the decarbonization of heavy-duty transportation. According to the U.S. Department of Energy, end-users of RD and SAF significantly reduce their greenhouse gas emissions compared to their fossil-fuel based counterparts.

We remind, U.S. diesel, heating oil and jet fuel stockpiles have failed to recover from the 10-year lows hit last year when high prices caused the Biden administration to consider a ban on fuel exports, leaving the markets vulnerable to supply shocks when demand picks up toward the end of the summer.


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Wacker completes hydrogen chloride capacity expansion at Burghausen site

Wacker completes hydrogen chloride capacity expansion at Burghausen site

MOSCOW (MRC) -- Wacker Chemie AG (Munich, Germany) recently finished expanding its production of hyperpure hydrogen chloride at its Burghausen site in Germany, said Chemongline.

The facility which was commissioned in mid-July significantly increased overall production. Buyers for the newly added production volumes come from the semiconductor industry, which uses ultrapure hydrogen chloride as an etching and cleaning agent. Investment costs for the new plant are in the low double digit million euros range. The increase in capacity will strengthen the company’s specialty chemicals portfolio for the semiconductor industry.

Hydrogen chloride (HCl) has many different applications in the chemical industry. Use of this reaction gas allows manufacturers to turn low-energy raw materials into reactive intermediates for down-stream production steps. WACKER, for instance, uses HCl for manufacturing silicones, pyrogenic silica and polysilicon for the solar and semiconductor industries.

The colorless, water-soluble gas is also an important processing aid for the semiconductor industry. Hydrogen chloride is used for etching hyperpure silicon wafers and for cleaning plant components. However, the media used must be extremely pure to prevent contamination. “A lot of our competitors have dropped out of hydrogen chloride production in recent years for reasons of cost and quality. That, along with growing demand for semiconductor components, has made ultrapure HCl difficult to come by right now,” says WACKER Executive Board member Christian Kirsten.

WACKER is currently one of the very few companies in Europe that is able to deliver HCl in the quality and quantities needed. The company initiated investments in the low tens of millions of euros to cover the recently completed expansion work and associated infrastructure at its Burghausen site. “We’ve been very pleased with the development of our electronic chemicals business, which has outstanding prospects for growth,” Kirsten emphasizes. “A lot of megatrends are going to be based on semiconductor elements, which, besides increasing demand for chips, will also create more demand for processing aids such as ultrapure hydrogen chloride. Expanding our capacities will allow us to meet that demand going forward.”

WACKER manufactures hydrogen chloride using rock salt from its own mine in Stetten, Germany. The composition and purity of the salt mined there is especially suitable for production.

We remind, WACKER has completed the capacity expansion measures for the produc-tion of vinyl-acetate-ethylene copolymer (VAE) dispersions and VAE dispersible polymer powders at WACKER’s Nanjing site in China.

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