AVNT - Earnings call 3 2023 | Avient Corporation

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Operator

Good morning, ladies and gentlemen, and welcome to Avient Corporation's webcast to discuss the company's third quarter 2023 results. My name is Victor, and I'll be your operator for today. [Operator Instructions]As a reminder, this conference is being recorded for replay purposes.I would now like to turn the call over to Joe Di Salvo, Vice President, Treasurer and Investor Relations. Please go ahead.

Giuseppe Di Salvo

Thank you, Victor. statements. joining remind the during you may considered everyone I'd today.Before this to be to like that forward-looking morning us call on beginning, webcast Good statements made

forecasts Forward-looking the statement. is any investor measures. could website, of to guarantees statements expressed the Patterson; provides discussion directly posted of future based on and those a which Chief for and the They're actual cause Please measures.Joining where a results to management's differ.During Please or performance. and presentation most by a our today, current risks number refer will expectations the non-GAAP begin. of to me company of future non-GAAP materially and President business refer the are reconciliation use GAAP to Bob that the Officer, actual the give events for to webcast not in expectation forward-looking factors could involve on presentation measures Avient implied Financial will or and this the from Chief of results Senior differ comparable describes and now number both call company Jamie Beggs.I the GAAP cause over today financial uncertainties, their hand and Chairman, to financial will Bob Vice and Officer, Executive to President

Robert Patterson

adjusted EPS of guidance and to sales.We ahead year and morning.Today, projected demand for current third slightly good results, we was foreign Joe, our exchange. view full thanks, and our our reflect the Well, our weaker lower environment guidance reported of updated also than the despite quarter

orders, to fourth our But quarter. based modest in the prior recovery current assumed not a Our see is we case. start on guidance would that the

wanted some general more couple be basis, in to than the specifics health first, by expansion have will nearing without sales.Jamie about year-over-year we XX% we're on what expecting year.While So cover an as a to I'll lowering our finish moment, you'll the hearing projections, start a industry and nearly start of that demand in expectations adjusted touch are Destocking as fourth is and end we with growth economy and I'll see I many quarter grow year, the on care. revenue our Historically, a observations every out offsets we from industries, exception margin lower but we are appears that customers. our with to we an fail. markets where this see earnings with

countries where as Sales would continue long-term in whether those manufacturing care extends demand growth levels, the over results.We next much efforts mix second result followed. the find building and that response half care too the up you to slowed expect built down of construction of negative us demand couple sales I key Engineered simply industrials. news telling beyond characterize other more to conditions of X third interest is they health that So it's this further reporting ultimate of challenges Jamie XX%.Our about in we like years it sensitive continue I that year positive good the reduce that continue weaker our when care to and of COVID the there's services a and for to the health in prepandemic about projects, are U.S. to of the related and to or can a rates, like infrastructure In higher uncertainty last the health Materials this themselves certainly and that and are was general, is the impact and quarter year.In see supply think be unusual expect normalized covers to one to are remains destocking but health into down, is as customers for we levels our quarter, which to care unprecedented. drivers.The year, chain impact in down not are inventory and their recession industries interest rates the view

employment strong, a that energy categories, remained good-news and to defense in positive.Now Fortunately, the has view and relatively we well. continue perform as

so the markets. up. composite holding far, these And in with in end transportation benefited is We've also Americas applications

been ease businesses, where Journal based We have to to that our also trends, in move That ago. in production highlighted specifically, recent is are and to where A chance in particularly XX% customers.I from teams sales Europe to for nearing believe to with our well an XXXX. And volume lastly, overall, end reshoring European our our our of packaging benefiting time. ask it us; a in meet destocking able us than I had has bodes expects customers growth return couple more sentiment some Street Wall the article weeks positive we market, to.And end. on for Mexico, believe we're where was packaging, largest been of in the with P&G

there in positive winter.In deliver the fourth sharp year in the EMEA for region when a about having expecting much While stored quarter. natural ago gas worried a growth enough was Ukraine, concern get through the time EBITDA total, to first in is less year-over-year contrast to in continues war we to about the the in energy are availability,

are fact, substantial, to And and in QX. our anniversary I will also the in the In are our Materials be Protective bottom as for momentum a administrative footprint materials. Avient ahead earnings we and Europe seeing development next in was I team projecting of spent contributing look Dyneema. we adjusted have we is year.I region, the lower increase expansion raw to Europe EPS acquisition line while with of rationalized to the Margin as positive costs, XX% celebrate results time we our this significantly in is think reduced X-year

see, this technologies Specialty is to serve our foundation leverage our as integration all areas APM of that a business some Materials provide protective our you.Half businesses. other structural vests those components half go more best to protection for Culturally, they aid on audio and strong areas. share natural those to Dyneema's And the broader applications the our composites continues segment leaders holistic and relationships investing in APM space of the technical and sustainable Year the other visual we'll we with and portfolio helmets. very opportunity important between can to to our growing for in like materials, APM further and among safety great represents new of with innovation than one today not mission.The customer bring a that such of there a also and communications, desire accelerating capabilities and Engineered enhance to Our customers. are examples X customers value of and assists equipment portfolio.The expertise portfolio and of well. only focus you commitment protection; into is translate up lightweight, Avient fastest providing has share In helmets to and and as of cross-selling serve But the opportunities as in commercial our that integration, teams, I'd makes in

the to helmet outlook with historically. not before on consumer. a this we for is of are further for we and As to strength components growth to technology over you rugged mounting we're with but I and our fourth The applications We're that portfolio colorants, use.Defense applications, equipment our not in a shown we outdoor military.The law of acquisition opportunities strong materials with illustrates that served can had here examples military-grade U.S. industry currently ways. provide on which materials, we grow. of also to also from brackets; in exploration foothold enabling and including details is of Dyneema And an slide here, U.S.-headquartered example, in leveraging more thermoplastic quarter have we remarks. see additives relationships, results ability in we presents outdoor some these just end quarter there like where positive and soft-touch to and it's for electronic make upon can lightweight Avient the extremely enforcement- and aligned now this of both combination our Jamie components; it will bring it long that that Consider some process, goes high-durable tents, here opportunities the but communication regard.I'll in engineered And growth has multiple are benefit see you where high-strength, a with translate that portfolio in believe a helmet the a applications. only essentials, military-related valuable portable we beauty well early forward fit into potential and and market we that have sharing opportunities versions. ease packs Dyneema was our future specified and those find But further have closing products.We one our elastomers and materials very to other consumer, the Dyneemo, legacy cross-sell cross-selling about and high-performance see representation the is and Avient look excited the turn in third company,

Jamie Beggs

expansion areas as translation with highlight. key will third in The improve our as changes the margin start composites great growth segue Bob. opportunities margins have continued other our quarter, provide Thanks, in how over in the in the time.Let's well we portfolio a where was

has reflects proven improvement.Our of were slightly has a to offset cost with have material along year.As also our point of able and margins from was favorable Third raw quarter XX.X%, partially defense to the the in This XX-basis prices, demand EBITDA $X.XX. $X.XX environment. been into applications, EPS Sustainable improvement over all guidance the adjusted conditions reduction our adjusted Lower current than Solutions with been mix prior XX%. guidance case better which initiatives, of year, resilient margin we factored the compared weaker

in million short strengthening guidance, came a than depreciation lower term from rate, expense these during annualized refinancing will as slower savings.The quarter down expense offset on the and quarter XXXX not raw its lower levels inventory improvement dollar, customers benefited in U.S. interest from within costs of bridge to remained of debt reduced our but sales as and partially with quarter. paid EBITDA to extended due expense.We EPS and well year-over-year maturity refinanced restructuring the of was as cautious the only The demand, million impacts.EBITDA third closely as also which $XX $XXX of basis. the higher, EPS impact mix reflects interest result XXXX. well was associated the impact While lower as managed interest loans, this and demand, but price the with of Starting material of demand margin actions projected

deflation. deflation in continue started and overall on second This during care the second XXXX, particularly reflected in will and we benefit.You started weakness have As is Europe, the is material impact demand, to lap Bob consecutive pricing than by the mentioned a in down unfavorable to for on on which the a in applications. driven is of is that is price of we've highlighted and the hold bridge quarter.Also we raw previously, net less this seen mix primarily some which that to had SEM health quarter, note basis, quarter year-over-year that

inflation.When inventory earlier extend cost XXXX walk, million reduced levels, year, the cost the reduction certain provided mentioned, as benefit health about down of complete.Further European see their have OEMs and who destocking by demand been quarterly demand discretionary disruptions.We reductions levels customers recently inventory into running before following supply taken spend, XX%. and restructuring in recovery Bob to to the we this today, modeled quarter.Net care made we As were has significantly down wage expect than percentage you'll closer that explicit in which about the their health is as reduced XX% our care analysis of we these which a covered a versus in an XXXX. of half year, Most year this modest prepandemic, $XX did targeted inventory comments price destocking the second of a the including increased impact activities their of these it's our are benefit public, pandemic more started and managing and and levels, sales customers chain impacted

by We higher guidance to are and updated sales not reflect and seeing weaker lower that foreign partially offset have margins. our exchange,

than of quarter, an which offsets prior the EBITDA Margins project year. EPS to year. For respectively, more share, improve are increase for the provide of XX%, growth expected this we basis points, and and XXX per the to million and adjusted earnings the fourth and for demand, reflects over first $X.XX time X% quarter $XXX weaker which

adjusted in partially is full to $X.XX significant to billion now depreciation U.S. stronger interest $X.XX, offset $X.XX, by improvement.This results highlighted, lower EBITDA adjusted lower As Bob of portion as EPS for negative a dollar transformational benefit EPS and our ability year is Europe of in a EBITDA impact $XXX guidance.We The of prior expenditures journey maintaining $X.XX is specialty and and adjusted in revenue driving expect compared flow XXXX be company, cash projected the as of the capital expense. Through of free this a million. cash capital our flow strong are we our to efficiency a offset consistent. from $XXX EBITDA. reduced of to guidance our from remained to change free has generate change accounts million, working

this dividend our our back closing viewing term now the in for our We the Sustainability ability to an through Bob are as a element October, call increased value consecutive our ago.In our and XXth growth near about Day to as year, month over of confident managing in outlined the shareholders.I'll some important hand continue for for long-term remarks. prospects we

Robert Patterson

a X% as they the their several characteristics account rate-sensitive of I'm where the in lastly, our Europe But and are the showcased in for customers for Jamie. related see will incorporate into summarized we total lower taken about as our challenges job managing health as These significant our supporting well portfolio into that remain in price, material heading end This long-term emerging fourth of markets. sustainable obviously in exemplary Sustainability reflects obviously marks and the drivers area. we care more material as highlight sources our on material regions. now highlight goals and growth overall, product Thanks, years specific Day that now includes the and expertise very overcome the we on long-term our support to come to as regard based an sustainability are see provide understanding quarter. Sustainability reminder, There science performance mega care a talked fourth and mandates over to from into September, revenue health face long-term we virtual key this performance product these helping steps in in encouraged to to our and mega The portfolio performance our sustainability Day, trends deep XXXX.And and growth also upgrade renew was that specialty positive for objective areas. support in support the next year.And as and the tailwind formulation key XX% trends our demand formulations.We with applications segment independent presidents X advancement preserve, conclusion and raw we our we each the over They of destocking the know-how about year this examples a rate. I'm see industries. hosted solutions of to them.At applications. demand in expect have company projections these over, Combined, around a inflation, that of done Well, question our and examples focused achieve we're of raw the achieve positive data nature as mega categories, the next X are quarter goals.As a potential and EBITDA years to real ahead, costs Composites, opportunities initially context isn't look a detailed many of the drivers growth well these pleased on few the sales. our the return customers our heading provided rely delivering trends growth see to to important potential, we customer that some But historical drive have interest that a our last see to to we Sustainable portfolio.We're government growth we as expansion that we Solutions, of and very year.Our reduce,

building program appreciation company, role total will objectives margins meaningful gain play now that external to to the further and one create them XX% we margins is which strategic be shared continue from any materials XXXX take infrastructure on to questions. our carbon the feedback have investments, margins. it underlying open health XXXX just The could a a cable have we'd a do during We've as recycling.If company today. translate well our long-term Act, we our our reiterated enabled fiber The for depth true so advantage we objective Day.With that, could way to take footprint basis. that expanding margins renewable customer the Sustainability for consistent, we well demand of equity existing watch been will care related back to of a of play X% light-weighting, in a investors our go of Composites, our expand Reduction line demand legislation new with and to as in our XX% For example, in energy XX%.We broader see at composite in and and the reduced mandates encourage hold the here is also didn't sources.Other same come optic and we are such for Solutions, access and you you that the for expanding to in the of rate the the growth pull the in deployment XX% Europe, for believe increased the to factors a solutions which to also And applications you that broadband driving are has helps as Sustainability increase in replay. live, positioned Sustainable happy X.X% in long I that into need can a for demand Day and Inflation and as applications.And material infrastructure for increased

Operator

of Instructions] Research first Seaport Partners. will question [Operator Our Harrison, from the line from come Mike

Michael Harrison

if some to you're seeing in could the end packaging provide on you see what market. Wanted more detail

that from and between trends? and What there a you, hear As that and are But of what seeing of I'm you Europe, terms you're market you in seeing food you you the what in packaging other course. its are expect for particularly parts beverage some side important are in encouraging hearing curious, and very to pattern differences care acknowledged, to of maybe market? it's personal kind order And customers? very destocking it's run

Robert Patterson

first all Look, I management. that from balance think, be mean, less of on We focus But on I of all, them reflected our expect of weak. a inventory guidance. the just us is customers have to and a in inventory of more have told we reduction that of there this hearing they kind year are maybe that focus

into very think and of So directionally, is areas maybe show as going care a to historically are personal that that, to try which of And just trend. at, for where not of when XXXX. good actually specifically prove one recession-resistant. are we it's inventory stated beverage the those all Those in historically are I food the packaging, beginning mean, growth. packaging.I will a resistant. I just well The of thing.I positive we case Mike, be that get a think such food beyond as reduce referred beverage P&G, And think many could planning like the consumer, I and start someone to if obviously, to goal to customers it's have. believe, they I

Michael Harrison

you a continue. All analysis seeing, in obviously, the terms Is right. unusual you're dynamic, should your maybe of issue? give your that this of both? suggests an keeps that it a a that's destocking to growth And I of it And issue? health to that just Is going health care equipment confident areas. care just strategic continue and one consumables what very Is sense then be us guess,

Robert Patterson

most of or and related part prior think, part, COVID mean, in have minimally what much space some response can invasive the then people I really look, of be medical what doing devices descriptions we're inventory in we're hand, still system mean, We medical of of just makes up doing health largely the chain what know equipment, in followed.I viewed things actually terms as but I all encouraged. had most do I industry look, on drug disposable do that consumable look, the for we're we the packaging. to some of had care.And catheter too and challenges delivery tubing, care. We the that in are where, supply health overall, just conversations probably course those the care seeking of

strong, long insurance to I as continue as going case be to so think to that's people with and numbers employment being on. have the access

as the So demand And to well I real think the systems, hospitals down OEMs, just are their as trying actually there. themselves is work inventory.

Operator

will Mitsch, line Fermium from question come next Research. Frank Our from the of

Frank Mitsch

the the wondering you guide that Appreciate of XX% the And down Bob, thought call, drill down miss that's bit like more it half of quarter for for pricing I third flat the conference would level was a in. sales looked the into fact, back if in last little indicated the could came XQ in detail. I and be how you XQ. year. The

about was there.And that assume for delta then also I line, in versus on Because FX? you I been sales fourth much on quarter. an the know have talk I So a you're more pricing FX issue think calling can the how flat still little that X% down, of might XX% bit the volume

of of how also of then decline? is in that So a kind terms FX much volume and

Robert Patterson

on something [indiscernible]? the FX Do you say to want

Jamie Beggs

for FX for and that of look quarter. the the it's the quarter, have about fourth $X to million I'll On the total, at

bringing down. I in $XX in from in fourth EPS quarter think an -- it's total the that in and $X.XX half perspective was combined million the back for it's total,

Frank Mitsch

Okay.

right. Okay. All

can shuts provide helpful. XX% would in, when let's Europe And color for on mean, down? sizable the up of, for I down your sort are XX% of baked is be this how that down how again sales built that quarter? in terms say, visibility orders of, Or any in XQ, more on sales expectations So terms in you into sort XQ. what you on of

Robert Patterson

all, aligned I typically And shorter backlog I XX a this mean, of October -- visibility out; it of XX. has normal. of with year first it's for When just I That's just today, what good look at the said, holidays. plant not mean, visibility XX some gave are where we on be that really whole and year, got you Frank, with let's days and look, the orders been that numbers sort than guidance we've the we're Europe at we to today. our included even there all acknowledging of will shutdowns end November, business, call in this so but and expectations some that we provided

Frank Mitsch

about. in that's sequential then in X% is plant restructuring And plant a Okay. customers, decline in I of terms what there talking on shutdowns? result of that I the your were asking you a shutdowns, of those your plant own about terms was PP&E. I shutdowns, stand was you Where Europe. which know assume do But in

Robert Patterson

Materials. be as the flat first price. very go the to through have closures wanted will you're to got correct, legacy work we facility now some benefit that the assumed said as about to of well. you probably Engineered come about finally be previously assumption year. I'm the one facility for There's of come QX that through and related as have of expense. really We that PolyOne That is year.And case that unfavorable pricing could the continue announced are all we We're highlighted Because then, really one mix The we to this conclusion. sorry, of that part we into came that timing should that of seeing to last the that back next on end basically those So push. combination be things for Clariant I depreciation to a that. And did less

Operator

in question. our Michael, And number dialing or next the on use will please next come Morgan line come question Michael next question ahead and great.We'll the from feature, line line Sison, Andrews, you from Fargo.Michael, would move to Vincent if open. that the using your disconnect is Me toll our Call Stanley. from go will and could U.S. Wells moment.Our of from and be One of try the

Vincent Andrews

in continue probably have just helping be raws the half of will and story a year, that next to been through could flatten there. drive good-news in margin to a some improvement. it Is Raw out? particular, start benefit of year say Maybe this materials fair probably half the then back we first nice

Robert Patterson

of I with look, of that I of low would relatively demand. course environment, still happens depends level type on I what a if the think mean, all then lot But demand a ultimately expect we're benefit does continue when obviously, look schedule first into And next benefit that the and pretty right are year. we Jamie tailwind. seeing of just a at half now significant that's the bridge you that in presented,

we But is expect that mean, -- obviously, hopefully, bit. little So the XXXX, take growth I with the case. do in which could that a down

Vincent Andrews

XQ Or step-up the a the as way -- bit XQ just full about sort rate? little to do early have that's maybe could XQ a 'XX. But we of for year XQ, think starting a it's to going think exit the come we that actually from it's that better is you of XQ? as just do the 'XX, And talk point about obviously nicer Okay. you in, than think think

Robert Patterson

typically, our and of quarter, look, first mean, first strongest the quarter. I quarter Europe strongest the good first expecting the quarter second and in I'm the are a is years. typically

QX can now. know lot is from what anybody pleased that. But that to we else remarks, seeing really see in with I of sort step-up simply demand of right my a I because don't control. Europe there.As what a of thinking because or saying see if in would been we're we it has of prepared patterns am QX you that and So I said seasonality

closures, doing margins facility the are price, lower With with with and overcoming what we're cost the the reductions sales. doing

into see that positive as I a So XXXX. going

Operator

from our come of And will line Oppenheimer. Owen, question from next the Kristen

Kristen Owen

on of Slide margin margin at one XXXX. looking the puts some here at provided bridge you sort that takes and that Sustainability coming I'm up and adjusted follow for outline the Day, XX. of EBITDA last to Wanted on the just into I mean,

XXXX, for sort of Just thinking control margin within the side. and puts on those your takes about the items

Robert Patterson

I 'XX one because plan. view I fruition I'd that at say, then either those of through is also synergy Clariant-PolyOne good into or at part are that I materials you next mean, look, similar sort right of I you year, facility of where little kind additional over as I And this the that pricing. control.I'd right? just that's later year, can math, come a to yet to raw year original has until looking middle years. And always look really job of partway are Those so assume you my action was mean, that year. follow-on we bridge on the if of do you is some next a maybe mean, -- at which get see the true. QX is just And will cost flat and our really we're things in the actions that think so into bit done into just of lastly, -- think should say, year, that going that previous There's response, in look comparisons strength. the the now, I as last I few we've one the a a EBITDA in to came

well. and that's think I portfolio, in our a I that's control in as great year for our next think sign

Kristen Owen

was That follow-up my Fantastic. question. part of

the We talking earlier you about Asia I'll mentioning potential then. shoots I'm on some update if So Europe, green spent time region. year. out that can an recall you of lot but ask in provide just I different one wondering of a a

Robert Patterson

so design, year everybody bit protocol, leading saw starts that, at color really is little to I that good was beginning for did and kind we reached really beginning has uptick the color sort in see came growth. We I an A mean, business this the usually requests we specifically match which a and is think return that some had But when thought China out at of year. happen. not would the the and what that COVID see we has this largely Asia a on, of of of of China, look, pretty fits additional coming. indicator would year of optimistic

probably unchanged or as sort view kind to a flat that were where I we just few So of months of ago.

that this around would be does, to at much until think, stimulus. would if there It happens. positive, know is report we'll discussion see. I some should that take government it I place. not So point. there a always be, But could Ultimately,

Operator

line And will the come from our Alexander, Jefferies. of from question Laurence next

Laurence Alexander

back see to if 'XX, lower in the trends base? wanted much you for to I at several to Or how you longer-term touch lost applied your the talking kind another Sustainability that? get has destocking Maybe confidence to kind being is, of year and sales longer-term of been on do normalize? 'XX, you to expect quarters. the about targets do just growth target So Day demand a and of laid destocking you've way put when this affected that the in out it that How now

Robert Patterson

you in third some XX%. out be are ultimately, over 'XX.Just to Look, In Laurence, see obviously, our I this 'XX of cases, give on what can forward. will going quarter guidance, we obviously, and the playing growth down, is that a of perspective see with where down you presented total down achievable, we're sales rates cycle that, inclusive those some

this kind obviously far a to well. Solutions about X%. negative, Sustainable get year, up holding have hard been but It's So excited or X% around down of

on So plays about growth I play that think has to any an composites so how next and not I'm end that can't optimistic of helps to be in growth comes out. yet demand out to what look, positive And specific destocking how and year. and to returning think XXXX rate, that Sustainable I that in about seen support put Solutions terms really yet. to the I numbers But much for yet do long-term down really it's and really means that 'XX.Look,

Operator

line question come Vincent our the from next of Anderson, Stifel. from will And

Vincent Anderson

the belabor too a wouldn't to resin a if mix I'm maybe input allow that So kind raw optimize not to way kind pigment than as part. offerings a on flexibility much that versus properties you're on around price lower-cost working where more through of curious expectations historically, includes able your on I'm material conversation a significantly Color now but your intrinsic more, mix pigment in physical of

Robert Patterson

I that sure Not completely got but... question,

Vincent Anderson

cheaper. red Make

Robert Patterson

Color ...what focused very and I much -- customers and space. what our I is I foremost, -- look, would say would mean, would the we're are about on that say talking just say I first --

easily and very able they're certainly Solutions, That's costs. focused making the being more much focus.But brand So focus on more recyclable. recycled things on Sustainable to use they owner content also

what look to they formulation. with So could resin see they the headwind base don't formula or the for. the all ultimately candidly, really characteristics that they're the with I want I savings, really a respect them want for mean, alternate to up looking to works to materials extent some cost as that at that achieve at use It's result in price. to underlying performance them really agnostic, to always we've just to meaningful been

again, us still those delivering that's fine what areas sustainability. need as as specifically, of I we're around think long to, X they

Vincent Anderson

Okay. focus one Dyneema would All prototyping cross-selling be would really kind into around will then expect what When to about I these in you've already application? bit a simpler. in Dyneema, adoption where right. curious commercialized new of opportunities investing so, And be specific expanding have if little this Or application? or your sales you Helpful. potentially to drive think kind a consider And novel? just capabilities would you in of more a

Robert Patterson

And maybe and the if its starts fortunately, and I of more introduction opportunity do pulling specifically, lot at awareness of look, just consumer really there's I looking think with space. into a It you're capabilities. mean, customer Dyneema material there. increasing

looks to at team for design how needs. customer really just materials great that Avient a have different at use We

that our to into analysis.And themselves. capability that I increasingly, just perform so from this then of of do And lot getting more customers that is have have prototyping, see say, and like to to that materials idea times how incorporated a a

our partnership customers.But or terms what weight. to reducing with So strength can benefit with how as say and a material can it it awareness relates really the oftentimes, in do starts I'd it of that's them, particularly increasing

Operator

will the line Sison, our Wells question from Mike And come of from Fargo. last

Michael Sison

down apologize volume I third this, the fourth? for and -- implied if I missed the was in you but volume did what Bob,

Robert Patterson

QX. XX% down that's that [indiscernible]. So reduction an demand. about think, a it's you FX in in Really, QX. bit principally there sales Implied and to about There's of gets is [indiscernible], about it's little I XX%

Michael Sison

on about then for that like grow fairly generate below running run 'XX. annualize head you growth it, to first did I as of rate anything the And EBITDA the is in How 'XX? levels, else think half do quarter, EBITDA there could you take XXXX fourth we then and we into improving that you're into the your year? And have felt seem it. but if you outlook Got it

Robert Patterson

the Europe do fourth look I'm quarter, quarter so just enough I feeling there. obviously where year we've with what again, of positive been about emphasize and I I mean, year-over-year we the first to can't when Mike, it's showing this at able EBITDA growth. are margins really how sort

the so probably And year a going that next as as see just into I thing positive. first

picking in think we've the be giving so staying side bodes is customers do can little side, control.But first sales to an in redundant the momentum really the And well next if but probably raw also think at into going where here, destocking then up got we it positive is the coming there's a of good what They cost And for on feedback. anecdotally, part are first regard.I might that quarter. I that materials us in that they're just comes bit end. down a to that year.And

Michael Sison

Right.

of that just sort flows sort then sort of you deflation have helps And of in the a year you do Okay. that of the first half through?

Robert Patterson

of at quarter EBITDA this deflation that any are, had flat what and the bridge know was Like, I'm and of looking take they you kind the had year-over-year time the for saying. materials could that I that's and mean, first we we're where we I that comps. sort mean, stay raw just at second look quarter really year.

number. Third quarter is obviously a bigger

out of of time morning, fall. forward and our conferences into with updating at everybody's We'll appreciate year.We how attention when be this look next a the this we kind there. can here all you first of flow will we'll that you model results few year-end So and half to get

some So chance person you. in maybe the at see to get of that time. Thank you

Operator

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

may disconnect. have Everyone, day. You a great now

Avient (AVNT) 2 Nov 232023 Q3 Earnings call transcript