AVNT - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to Avient Corporation’s Webcast to discuss the Company's Third Quarter 2021 Results. My name is Gigi, and I will be your operator for today. At this time all participants are in listen-only mode.

We will have a question-and-answer session following the Company's prepared remarks.

As a reminder, this conference is being recorded for replay purposes. to President, call Treasurer like Di to now Vice Salvo, and would turn over the Giuseppe I Investor Relations. proceed. Please

Giuseppe Di Salvo

earnings Gigi. you, third Good and call. XXXX welcome Thank to morning, quarter our

may remind Before we statements this Statements Private of would the to Securities Act be beginning, you Litigation Forward-Looking considered Reform like made that during meaning the within webcast of XXXX.

financial and guarantees based will the of Also, presentation business uncertainties, discussion comparable forward-looking future during materially historical are results measures. GAAP financial provides or website will expectation Avient their today, not the in forecasts refer on of current the are measures, events implied use for to expressed reconciliation They directly or to of and a expectations the give performance. non-GAAP non-GAAP risks posted measures Forward-looking Company any financial statements could the future number of the to differ involve Company management's and cause by a those describes on and statements. the and Please from where non-GAAP which both measures. GAAP actual most

Chief Patterson; is Senior me Officer, on Executive President Vice Bob Jamie Officer, Joining and today President Chief Chairman, our Beggs. call our and Financial and

call opening to some I would Now, turn the comments. over Bob for

Robert Patterson

key reflect our Thanks, to of of transformation the Avient everyone. quarter we Today, the good portfolio impact results Joe our morning, and that platforms. are reporting continue demonstrate third as growth record

the Avient year-ago of pivotal Clariant's in evolve As today. acquisition we a business this that strategic a over and specialty are know, moves the past you have into was subsequent decade over to made we point and to deliberate The journey. a rebranding Color formulator

rate we of nearly in composites, we growth achieved bold integration, Clariant moves run growth performance have synergies significant have and million portfolio the year. technologies. sustainable transform a reflects ones XX current Company are and add solutions, specialty high on This from Our we toward the a having taken year, the in and record to these healthcare

see reduced every of we of debt very served debt in have tremendous the the date announced the the numbers The around in up Clariant are our we a in have are against that that, is end X.X our the as to originally year from will also you net addition had which but XX-months, from engagement the we planned shows we by seeing unprecedented business us half or reporting we our day. well, net in about just seen solutions, demand Color have a commitment associates In world we time the has conditions. only to success, Clariant engagement EBITDA times which not and segments for backdrop today, deal. This our leverage that this all challenging been material

I come customers, global know which team flexibility through world-class and and all makers, disruptions you supply Our footprint, availability helping difference has have myriad workforce issues, of raw to a together in to chain manage our deliver us service about. been material dedicated for know operations our manufacturing our

our into to We unique world. these customers the opportunities, challenges improved have around turned value proposition

using and Our chain items handling everyone these XX% to and More-and-more solutions. to disruptions, operating for XX% up all space. to are pleased our in and as which The their performed of income efforts All to well three of respect Color well have are overcome third robust we so, costs demand our magnitude sustainable slides impacting associated record additives up and EPS committing the XX%. exceptionally reflect three with segments have been but value sales substantial, the tremendous quarter our our as inflation incremental I'm them, which proposition our cover to our supply adjusted with both features with this we materials, grew detail quarter our of and recycled with more goals. contributed sustainability unique will results, accelerates morning. results very in have due in had this inks performance growth discipline customers

income as I contributed namely up high well ongoing XX% by In these growth by cable composites XX% serving the mentioned the a as cost prior Distribution growth addition, SEM over from results. before, client materials, the year, healthcare third record growth respectively. XX% operating achieved our deal as unique in and our synergies and for applications, in demand which optic portfolio, of the integration fiber underpinned healthcare. has were the to an delivered telecommunications, quarter was driven increase industrial

more Over great improved an of the an benefits increased our continue a that focus transformation important advanced make contributor more tremendous undergone sales performance margins, to are years, but our the about all to Not portfolio this with revenue progress only despite our we we use but is I'm with our synergies. XXX long-term of sustainable of applications excited most increase capture have specialty An and to solutions the well use virtually improving how our legacy been million formulation recent combined has post-consumer can their in I'm and integration deliberate acceleration commitments year. between usage example our the of of shaded has plastic we challenges characteristics. materials, driver used is consumer in margins first on on chart. in this mix organizations, points. the to gap the expertise synergy margins five a long-term have positioned and reach products. portfolio require the you pleased progress, amount companies recycled basis portfolio current and recycled content early million Clariant to on very help inflationary and owners XX innovative have XXXX ownership, well. their enable percentage There their based improving is pressures. And significant which to growth, clearly being to largest in This to the two achieve slide leveraged tremendous the goods solutions a of reach shows and their needed And packaged of brand targets. commitments gray recycled of reaching the One made synergies our in contributed Using the the expect our the of of in improved this between the as gap see Color significant quarter. is In opportunity $XX these acquired expanded the these quarters bridge customers performance as business recycled material nearly goals. has

properties leading material our quality. contamination, knowledge material. is we cannot to dedicated and innovation space. You the material XXX% example manage takes It and Color this precise one customers. sustainable maintain achieve to this and portfolio in replace recycled of are physical just from of expert recycled the Take with experience and recent Color a virgin our segment solutions address

slide, yellow base using side Color from bottle you full left resins. the resin spectrum white. see achieved the is Color of a breadth The when prime the possible, clear the of vibrant On is

the see results, recycled resin, the right yellow we that Color. you grayish side, While resulting which are in dull on is starting with

the these Colorants overcome same cases, There our or website. more. to need of to the as out. we that some releases case the plus and So, encourage enable content. of is factor Color, achieve our I you vibrant more You additives this? solutions, recycled significantly for demand in how more check on the And do use additional you are studies and products news and

success most recent week. was Our story last posted

by to why lives we razor a up collaborated BIC sustainable enabled a XX% BIC solutions enable over a These product emissions our just are total of grow performance and create that circular $XXX with challenges health human The key for growth our quarter As formulate drivers. to sales third Slide high recycled last sales. content. this year, of These XX economy, to million are are reduce year, solutions a customer's advance promises. and their to for examples accounting to XX% expected illustrates with safety. solving Company solution few TPE sustainability carbon performance

pricing reflecting were end which of all regions strong up demand in and markets. in All significantly,

over in with demand quarter particular, household strength healthcare continue In by procedures. experienced and we is in tied market business new and markets outdoor over such consumer a conditions is year a recovery and with our prior the third quarter. And lighter to performance revenue packaging. driven Although, growing end demand and very our well goods for grew end products. half From pleased consumer, and strategic seasonality XX% robust the be. up were perspective, healthcare Middle to I'm high the considerably as primarily an Overall, results Europe and East, in as some the

now cover initiatives increasing more that that the us of increasing backdrop Our next record achieve illustrate of have since couple specialty the the income. these our strategy to costs. gotten operating pricing Jamie inflation, revenue Against second exceeded quarter. will and enabled how challenging of chain disruptions supply has candidly slides the levels

Jamie Beggs

Thank you.

inflation significance were in As Bob with impacted three quarter. mentioned, of All raising supply chain segments and third they the disruption, throughout and we prices the how period. proactive cost want to the highlight associated

schedule, As covered inflation. more have in brief the we than see you can

basis. predict the costs $XX or for of difficult costs raw production costs work themselves that related who Beyond raw regions. of form or material need million exasperated new our supply efficiency, and supply we of disruption, chain as These incurred customers many in we less shortage normal increased by sources inflation, on be an manifest in are a additional labor to material These qualify qualify of than overtime to contemporaneous to alternative formulations. can a

how in continues we seek third sacrificing quality. into illustrates slide customer operating impact chain demand inflation quarter. time, The supply We disruptions nimbly, and of following and the are without as meet real to the

is Related disruptions. what walk market primarily we historically, experienced is associated sequential navigated to from than Middle we decline it performance quarter current to second million dynamics. inflation in to sequential to supply and and the we due the and Europe Here costs with consistent $XXX or more the of how East. have we To-date, QX demand, with covered highlight have chain QX seasonality the

number demand in prompted far cases, our localized to the formulations into experienced also for in weaker October. of thus demand received orders we which have continues be to quarter, increased the lockdown. services Asia Heading We strong Southeast COVID due reflected and in an fourth

is likely persist and of China. area is we We see that expect energy fully higher uncertainty out crisis play supply the inflation. An chain foreseeable to yet issues in to for will the future,

and energy to those down, we forced been said, not our costs. shut raw material to of been have previously approximately shortages and EPS plants With restrictions, per adjusted suppliers feeling some our fresh have of are share. customers full-year $X maintaining our While that guidance communicated subject higher

trends, our That challenging made environment. are team's performance we growth prepared And reflection of conditions. in long-term also realized not projections adjusted secular EBITDA the operating we XX% higher remind XXXX, why versus the EBITDA to as It Color a will increase than to execute deliver did from I a to significant how EPS, our and a XXXX, ability Clariant and is our XXXX. compare direct business an Company pace adjusted easy in companies of compared compromise, position a is many XXXX. on grew. XXXX Bob. This Avient's in a to back want hand XX% are increase growth And over rates challenging and full remarks. of Recall concludes is that, benefit our performance, income decline We differentiated. the is XX% to our for to record investments to in year call XXXX full-year my it now shareholders, projections the which quality in pre-pandemic performance reporting to

Robert Patterson

that Well, thanks, is great perspective. and Jamie,

perspective for quite step year, has consecutive We that also to strong the dividend, our earnings, how ensure Record we is highlighting morning, increased bit value are to away for near-term. and was managing we the we to have outlook this we flow, But a free long-term put recently dividend our XXXX. by time the the and have enabled us all since of in XX%. it need creation. cash spent This raise executing business in initiated are XXth

also two to our value and our now net closing times, that returning opportunistic can EBITDA on to repurchases. share resume to we committed are debt is shareholders, in We

continue seek actively leverage and our and we prioritize operating proven Sustainable into to to will our Solutions model, reinvest course, back Of acquisitions portfolio.

with have lot is targets. the And on year, able what York support deliver we our to to far. As asset so go which full-time continue why our a this been transformational acquisitions, delever, to as excited well more much to both with sheet we on into behind can detail is we There as balance December quarterly we host have calls thus we Day only are these in Investor New Xth. investors,

Solutions Sustainable our and into our dive deeper our innovative provide a portfolio, taking more be will We expectations. into technologies margin insight

further growth with are You optic our insights drivers, will will we how into are team, help ultimately see important economy, long-term the we to role for those something our is be the who provide and receiving advance hear customers like experience composites, that person. There gathering really there healthcare of impactful. circular more the members to and our comfortable depth fiber in option, applications many all management care. together, playing the and traveling of for from of looking several in you but forward be we will and Look, hope it virtual to I a think will those cable,

time. take be that We that, today. our with at So this questions happy to would concludes have prepared remarks any you

Operator

from question Our first Instructions] Bob Sachs. comes the from Koort of line [Operator Goldman

open. now Your line is

Robert Koort

is about, little was your novelty the in pricing, (Ph) wondering industry. you Bob, morning. [Ross] talk a bit could Good offsetting obviously you. a Thank if I

there keep distribution more synergistic information a enables maybe can about or that wondering, from the that overlap advantage You of that doing you I'm little is distribution or any business? talk benefits it. bit

Robert Patterson

many and don't materials I inflation necessarily of ways. distinctly as priced having as segments out I just into equation and that a of are, an believe are who our there point they say all And I for to that between and always customers, business three distribution in the Color think the then connectivity our I them amount more engineer respect gives is that buy different Yes, been would that probably of cost of there with very part is tremendous from us to helping has a helpful. so with to distribution respect insight advantage. pricing really would course, of so

Robert Koort

about end obviously you on and of year? a seen expectation There see are consumer those what some your talk you packaging. forward little markets. activity the relative change that markets, rate in surge had last have you Can you might And there of how very bit is then healthcare the end terms to path Thanks. big in in some

Robert Patterson

did year so some as we and fourth obviously three vis-à-vis still of us growers see extent we really start year, in Yes, for in to good have Obviously continue really industrial comparing all be growth in strong get it packaging. mean, this more one conditions we of slower pandemic to in applications some but look the packaging the get of quarter. and quarter And XXXX. is I lows been comparables XXXX, demand but we are strong healthcare areas last growth third has those to key this and healthcare, year, was that the strong actually to challenging consumer, along for us, because into

because very and hasn't demand weaker, going pulled it hasn't us is sustainable So I think gotten be to back. packaging still important for of It the solutions. versus

Operator

you. Thank

from Fermium comes question Research. next from Frank Our the Mitsch of line

open. now is line Your

Frank Mitsch

good Hey, folks. morning

dropped million ballpark XQ guess about XX statistics across. sequential it us, If XQ XX looking I as any in on curious unique, I at are was Just and inflation in to initial that XQ, looking of down can slide really the the picture to the on at gets to at XQ helpful you your nine who XQ, look help the million, then we to move thoughts what selected on an decontamination kind for read XXXX? point frame

Robert Patterson

going that everything supply mean, see I we we so abated. inflation, Frank so, disruptions, Yes far, to have is that, haven't are seen chain more

planning the And quarter. so here the same we a more are really on in fourth of

plan we same in so more us got that way think additional help being have the I which done and an presently, all handle to increases We announced have year. that will price

better perspective, could it believe getting January? just because inflation historically little a always to customers' forecast say December I patterns any a quarter, too. but things with between on aspect might from always And fourth have One cost has we wildcard and respect an bit change see that been of or kind been year really don't covered. the how December this I buying I would other So, is happen of have cautious

will things So, insights being drivers, on. and these so that summer. beyond. look And share to lay going out. the we strong those in I to trends respect how that for growth we really next healthcare There think to conservative mega And we are and poll into play some solutions, we and are year, the next and us areas sustainable of excited see for composites, in that hopefully, year rates solutions, then, is out allow is be able our growth to deliver long-term

a expectations. we growth out on but So the margin XXXX around lay time, this to guidance no drivers be lot specific able will at and

Frank Mitsch

Very the have that constrained that is have sales? we just you activities in be saying? the you greater what been December, has help your of And mean, are from that very chain wildcard I business disruptions would And looked even feel helpful. time-to-time, at were and your Obviously, would helpful. books in you of you? able pent sales see And order constrained as some strong you quarter Any some supply general, guess is, but highlighted have you posted like do demand? as in there up of to

Robert Patterson

standpoint. One, projected higher days guess what maybe have about I first. have two is so total. got latter actually for we The than take from looks actual have good Look, fourth growth for Yes, worth we that October. I XX historically, And visibility the quarter of part for that will an the are order rate is we there things. in October

Look, we where have with I the around back chain same brings contemporaneous Usually, on we XX on know is it first have deliver waiting because to get this year, this in that simply can we that really an respect say conservative ever something challenges, assumption period. year we had what that a supply time just some had overhang would period day have time a to is at And and the point. get happen we to So, which order to in December, going in from that kind struggled of basis. someone. don't out are this me we orders

of million we to. not not So, a number $XX magnitude accustomed but million a that one it number, to month, a that order are huge is in $XX is

So, up catch supply that on time some there at improves. opportunity is the an point in when to chain

Frank Mitsch

Thanks so Bob. much

Robert Patterson

Yes.

Operator

you. Thank

Wells line the from from comes Fargo. question next of Mike Sison Our

Your line is now open.

Michael Sison

Hey, good Nice morning. guys. quarter

of other that transformational prepared that Color there. acquisitions, EM in out well deal sustainability be scope went. targets know there it remarks where there or terms is the in you recycling how focused the Just curious, could or the of be given Clariant would transformational In on Are ones more another action?

Robert Patterson

two eminent. mean, only Yes. I mean, bolt-on us. balance all, nothing first the But but areas of have pursue flexibility bigger, the of acquisitions, segment, arises. Materials. opportunity list, the of top we do fall Engineer really falls there is are then there in of at or are do the which within to focus There are that of of which sheet at not I we something Composites rather materials lot being for this which Sustainable than looking are some, inside fall Solutions, opportunities the of and our a much engineer also Color. But if

think the best is Mike. to kind that, that So, about way of

Michael Sison

a Okay. like looking And terms normal you sequentially. of QX versus basis, a then, for in are QX sequential on seasonality looks

get sort of and talked some baked getting materials. know I inflation, raw it in sounds like there know, you more China you is more there. like some could what you be price curious, and issues in Just about

that levels yourself continue top given low. inventory I there and really thoughts any customers do of Just are from to hear -

as So, sequential of down have is quarter? much not it a possible that maybe

Robert Patterson

you demand start playing It and a of to this us the I real, is with. year seasonality Yes, modeling here. going low. thus we than The about more it that has see standpoint, weather. are and so the Middle having strong really that in think routinely just something levels for up, remain disruption think, So inventory could our projected Europe a I chain two East, could year be half costs. We stronger actually see and first do we December inflation as have from right. supply that is the about, mean, what far. upgraded from customers, I through expected. isn't is very is hear And things better And in and we out nothing will

I is But, in a inventory balancing that equation. I echo or think you about what just said factor levels, our do low. are they whole the heard So, because do still

Michael Sison

you. thank Great,

Robert Patterson

Yes.

Operator

you. Thank

comes Seaport question of from next Mike Research. Harrison Our line the from

line Your now is open.

Michael Harrison

resin Good basis, was get revenue additives much plastic in I packaging And wondering of Colors you needed? like? a the opportunity. are one applications? could morning. recycled products recycled what package detail. for I on any you and on from more sense ask of if look rather. the that recycled higher How more slides the how Hi. plastic more different per for or value materials some But Colors more and like maybe virgin little maybe total market can a could give on additives way, much volume much are How detail just I made those versus using you packaging addressable a recycled are those selling it guess, from I'm

Robert Patterson

for Mike. is December, up Investor coming teaser That a Day slide our in

you just So questions asked. everyone that

may not investor really answer What would is, not believe at and just we Color customer tell lay of lot or out be content brand size. more we it Y, some is sell can But with of will are going we are product type have good to have and do, sustainability the to we believe build a terms recycled more have same to we need around. together. mission. What model the smaller visibility something X selling day The time that. will great that that and I the don't goals the firmest have you players plus I what put they to by going a vary we information it vary simple does in is so today We by that because use and owners to good commitment, X does

will we then. you we it So there and can see do hopefully

Michael Harrison

opportunity. on that you. been cash an substantial strong Presumably a question next products, provides always it is it very is the have on materials. and on portfolio the broader this been time is going distribution you as the some know on earlier. specialty But around for what is same journey and market insights a additives I focusing at My addressed the business, outlet generator for you in of

You the a this that lines, you becoming a re-evaluate deploy just back it transition provider. distribution time of wondering, expecting value within into to and product the Aviant, have sense made proceeds over where formulator to the business fit monetize solution and to areas secular I'm is and whether makes time. it growth higher are business

Robert Patterson

significantly we look, have, you as evolved XX or over the mean, I portfolio our years. we have XX last know,

haven't PPS the being of in afraid make of the the acquisition recent sale of head Clariant. been to divestitures, most XXXX, announcing We

is of asset with it has would So take is say us. overlap right we that a our thing be say we think their second about think it the is thinking is businesses. that for And is view that connection I aspects about we, cash is there One our I healthcare but distribution two And find sales. right just XX% Look, a real other do really generating a the commercial that of that to then, I been portfolio. have strengths. and respect would angle to one machine, been a I to with important,

maybe EBITDA. earlier for inflationary XX% a I morning, this asset I'm sure mean, Bob's lastly, great question, total answered us during to have real I don't time but, so period. company of not at look this which And you If then

basis. it not big So, was a once as it is as proportionate on

than urgent And think that anything, is or to at is we do. point. this there more pluses need So I pressing don't there minuses

Michael Harrison

very Alright. much. Thanks

Operator

you. Thank

Our next comes from from the of Morgan Stanley. Angel Castillo question line

now is line Your open.

Melissa Steinberg

changing Hi, in been receptivity this customers there just Angel. of price that on is wondering pushback is any increases, there? terms on Melissa for or from Steinberg was I is

Robert Patterson

our I supply never The been with increases. supply. increases have shortage getting a suppliers. is is than for customers we price It do issues different us think for and are from of the generally it of great no when is the deal happy price appreciation chain there

inflation. I which is of All think driving

about but been price of one I same there things amount is neither need say ever are the from understanding for terms many we and no customers is would increase say same the excited get in let's are what suppliers. the So a our these so, doing themselves, we of increases about fair in - a

So, don't have that always make a Maybe I do been able of for, to to this we everything think have we been we it. asked able get progress we year. but lot

Melissa Steinberg

Thanks. And in feel you where or you Do inefficiencies a could to this are and is and headwind. suppliers investments potentially costs about expected you expect then when capacity noted now Thanks. good more in unwind?

Robert Patterson

orders people. us. another and result costs is we and maybe over that need capacity things on supply I all logistics are look, But fill don't a hidden and mean, a really have significant doing customer It of led like real inflation, other are and three versus I historically issue. freight costs Yes, higher. a time, and or sure they counsel so as a like for think for to of I'm is it the that material or pre-qualifying chain, disruptions, different have running they pretty other these one just to obviously are

strong. We have associates. is able that whole been capacity plenty these we going in it that, this would the to really to of silver exception Really labor. some as then solve demand only a more caught time haven't long broadly our for is with The take of cost capacity chain is is. we be enough get issues many to thing But if I companies go And that think could away. like that that, of constraint the to up continues get supply than lining to demand where manufacturing

good. is that So

Melissa Steinberg

Thanks.

Operator

you. Thank

of Our line the comes Juvekar next question from from P.J. Citi.

is line now Your open.

Unidentified Analyst

for on P.J. (Ph) Petri] [Eric is it Hi,

have on brand raw Slide for meaning of or materials? X, You risks capacity XXXX a from targets owners noted either all you see recycling that any Do them capacities. collection by growth those recycling to this

Robert Patterson

understood, there present pretty is enough to think I being to there a brand XXXX, invested. mean, but isn't that those a fair there infrastructure the know that think content I I is I of goals. recycling to there being think But think But make yes. real that owners meet but today getting is substantial a goals. want those that towards is at there by they challenge because that amount they Oh there and can't progress I recycled get widely chance

So I pretty that real. think yes, is

place, is think to I respect recycled who in infrastructure of won't recycling all people materials. would Secondly, lots these being go it the with that necessarily is brand mean, that there I to put like owners.

my is that lot there our material. challenge to demand is sense So, for that goals. with a be would of those hitting respect just And

Unidentified Analyst

there question. And you razor locks content and meet have spec to that for change that than additives in in did the to it recycling the follow-up your I and there. How capacity BIC Colors know Do long capacity the a mentioned you recycled and for investments you take is solutions in the product? that enough XX%

Robert Patterson

a lot way consumer to we tell handle, general capacity long of There locations. work do. but rule products, footprint, example and product, now, then, the just for BIC in to the working open dad, the of off not and particular there, And with in with in so with will do my my time was off rule. of that have you I I is, we the don't new costs. a Color. add like supply are are machine and the Sustainable razors Solutions. in specific for well-positioned as along how terms of in top we that, machines, some every on the top the know the specification can that lead typically many be But, general Once year, equipment, I are as right on, significant been and first the So product. almost toothbrushes yes, things growth so in has a specific companies hourly don't we manufacturing which constraints in what But on. head know we for We supply Again, don't of comments exception on in space question any respect associates short

Unidentified Analyst

you, Thank Okay. Bob.

Robert Patterson

Yep.

Operator

Thank you.

line the Kristen Oppenheimer. Owen of from comes next Our from question

Your open. line is now

Kristen Owen

Great. the Thanks. Thank question. morning. Good for you taking

XX-months, you the the doing your Color of about the that can outside which can today. of And I'm it at hand-to-hand in all speaks the over appreciate the seeing you if But context your wondering synergies, to customers. with of state last So, index you on of some your but talk lot combat Solutions, pipeline customers a stage? are Sustainable innovation of you this Clariant the additional vitality mentioned own

Robert Patterson

Yes.

get almost was kind second third So, of focused kind look thing the quarter, an everyone of called year, sustainability, innovation just perspective, come this maybe put pause, of and interesting so because on on innovation just increasing and Sustainable from and it lockdowns like been exponentially was of it last But and what quarter the COVID to new content. entirely have in examples that, recycled the just requests use a and we as so today out customers on. pandemic and from more like to related have we Solutions use

segments together. from and innovation on is EM our Color We combined our Solutions a index and put a XXX% pipeline distribution that I vitality a over of little as Sustainable is basis, exclude you know. XX%. equation focused Color So on

Kristen Owen

the the another And earlier out Day, called sales Great. growth the is but you the this for CAGAR quarter, double something Analyst there and for industry, Avient. XX% perhaps XG in digit opportunity teaser for

your should the that of that bit you opportunity if in wondering market strong this cyber for down break you. cadence You quarter. of and some about I'm can that contribution think little and how a us Thank the share opportunity mentioned context? we

Robert Patterson

our day, mean, really, slide that that. commercial at summer, has we when of how with with ton we before. a focusing areas company, out, a transformation of that products in like impacts And rates there sales. of was in to really are three same is and mega going sort some we as example, differences that XG look on of us as for in what is build really rolls these to growth just one double-digit I on quarter. The creating lot where years there that been second, out, how specifically the maps a going think we a add are solutions a the best actually and all I and spend teaser reflect I becoming that XG, show like of seen that in that at and about, the pull lot resources engineer never businesses the the my respect time important for areas look infrastructure the to gets past. closures the just because on really, trends of And that those to are great investor these are our in have sustainable and in pull for true to These healthcare. are And demand important I Telecom third today, are but focusing we it is the good maybe with and prepare that. for of have bit materials, too. organization, little of to quarter, of to Investor third Day, formulator, up being With ramp there the year, Yes. that just specialty started down now a applications one last a a But, on forest. respect was slowed plant very the the to performing for respect of is kind our had

which we to I this up again starting year, really So that is see are pick good. think

Operator

Thank you.

question Our Jefferies. of from next the from comes Alexander line Lawrence

Your now open. line is

Laurence Alexander

have double strong One, you the line morning. towards to and your sight demand of Good for think are they will questions. a past normalization? suppliers of telling in chain, similar you supply seen can much have business how two periods even with give a developed. they as respect I sense you of to secondly, your what when And have ordering the

Robert Patterson

mean, may respect I were supply a is think chain those year, closures. throughout part I in I had at with result to that orders as weather systems place cold think very plant we Well when of doubling of threatened anymore. particularly don't the been have and Texas, up, taking this earlier real, that the

more to the but they time, a that customers for at putting specific I in me, right question? seeing Lawrence are remind that then And now. needed think we second that than orders some probably, led I don't think, really

Lawrence Alexander

with even sticking they so your neck sight logistics issues, see there to their does Just that What to, easing and like of far of suppliers. they, the promising mentioned to anybody normalization? a out is you no line talk respect a, are that

Robert Patterson

think had candidly said all. is No it strong I is and really mean, going with hard are up. demand are of still known. type they said out XXXX, they companies, as now couple conversations through nicher I customers space in be I but who at said a remains not already very the they they kind last but sold catch to consumer week at these levels of that, were

diamond as the they What out else So they can orders I so, their still plants, have take, and and as got exists, suppliers really is just I it everyone think behind. all have sold are they long they catch mean difficult to up. dynamic for

Lawrence Alexander

you. okay, great. Okay, thank

Operator

you. Thank

Our next Stifel. from question comes line from of Anderson the Vincent

Your line open. is now

Vincent Andrews

table of just some wondering chain fairly ahead May the procurement closer this with Yes. to these a if year, or have Thanks. around targets of you scale correctly, Day. given have just long with of have nibble with courtship M&A, can brought By ultimately supply acquired. of a I'm the inflation, the advantages has period I'm you drama, that remembering provide? companies the tended kind Investor little disruptions you bit many If the maybe to And

Robert Patterson

with I don't demand. changing year we finding chain they out could have more have supply there a But a a strong discussions a to that as be in they respect to think cost are of to the are how year. past. equation because a issues this seen really of reason issues. than of don't those There the companies those about result might or And connection now been fruitful last change I have as year selling, any supply think versus chain in make think a really our the that way side relationship are performance probably dynamics I why

Vincent Andrews

Okay. these selling form material end new with outright opportunities segment just have additional from cross Has intelligence some the Clariant are of the acquisition. you new opportunities? seeing more helped attractive maybe Fair Clariant market enough. And where shifted in or either market the with that brought investments engineer that that in weightings

Robert Patterson

been some many there before, the all, of think we were of as company above, I why our one all Clariant a I of of love is I the relationships been for one healthcare and would Yes, that have really the introductions competitor, in multiple engineer industries. customer and reasons respect just deal alone, a and have of first you segment will strong we been good which entrenched was lot tell Clariant years, for back have for their really materials there in

selling cross examples. some good So we now opportunities seeing has but our been of businesses, right all really are across there

Clariant Specifically about. you I think to which were materials, asking engineered

Vincent Andrews

you No, absolutely. Thank very much.

Robert Patterson

Okay.

our question. think I is that last

more So on but forward we appreciate time everyone's to results, detail to all December Day updating at today listen to Investor again our of our in look you Xth.

registrations. a I out have got about ask think release we to shortly coming

person and care. see hopefully, until you will all take now then So, we in

Operator

concludes you Thank This for conference call. today's participating.

You disconnect. now may

Avient (AVNT) 28 Oct 212021 Q3 Earnings call transcript