ESI - Earnings call transcript Q1 2021

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Operator

Good morning, ladies and gentlemen, and welcome to the Element Solutions Q1 2021 Financial Results Conference Call. [Operator Instructions] Please note today's call may be recorded. [Operator Instructions] I will now turn the call over to Varun Gokarn, Senior Director of Strategy and Finance. Please go ahead.

Varun Gokarn

Good morning, and thank you for participating in our first quarter 2021 earnings conference call.

Chairman, Dorman. Franklin; Executive and Ben are Carey CFO, me Sir CEO, Martin Gliklich; Joining with FD accordance conference In Regulation call. webcasting we this are or fair disclosure, without this Any is Solutions in rebroadcast retransmission prohibited. written of redistribution, any of or strictly form the Element expressed consent call

and current to refer financial and call, most today's expectations Please subject results. that results definitions earnings refer It earnings the slides to are pleasure on release, been assumptions our at These of make include the future for found uncertainties. company's discussion are and and risks with from risk and actual in our now GAAP statements financial that in CEO Events. supplemental slides Element could certain recent These and non-GAAP www.elementsolutionsinc.com these Investors News not Solutions. to to measures statements be a our also to U.S. to During about Today's Please differ my cause of section forward-looking materials release future expectations filings materials events SEC has reconciliations is prepared can Ben company's will reflect that measures. we predictions. factors of Gliklich, website under comparable views & performance and based of accordance GAAP. the material that supplemental information introduce on financial the for

Ben Gliklich

supply We increasing broader for increasing remained we've trends value results our our Varun, in XG These in by demand markets quarter an you, technology. the and vehicles XXXX. penetration momentum fourth Thank the record industrial applications, mobile higher-end joining. demonstrate continued increasing quarter of in automotive the had and our core of electric to seen of secular to robust and positive content driven the inflection mega good electronics Thanks accelerate. everyone. XXXX, electronic exiting morning, outstanding economy begin continuing and chain Underlying

in of strategy attractive well capturing team and markets on and above Our positioning faster-growing its value growth even in the executing is these growth areas. business market beyond

semi very the businesses broader end were across volumes quarter. unavailability and The in challenges helped Logistics markets our delays in circuitry, assembly, in Our have at became ports significant and insulate to increase more and our created stretched first from our containers supply demand are raw We're industrial chains nimble to of becoming due us materials complicated supply certain and expensive. that strong. chain and disruptions. fortunate a scarce

pressures meet higher recurring supply demand. than surge we these navigated volume believe which teams in the to and should products, growth from the be higher-margin first realized cost well inflation offset in Our benefit a chain quarter. the of The more trend,

of flow case Our to reflects raw material the cash build shortages. persisting decision in stocks

The automotive chain. industrial offset We strong on shortages saw an in automotive of growth which markets. demand semiconductors from saw the broader supply the from also business products machinery and more customers by than construction, building in West muted the impact was

In adjusted first our customers this vaccination of While on year-over-year to around health We're partners of summary travel quarter our have fourth our in than results EBITDA companywide midst our the and #X the sales we the is you shutdowns net higher of slightly regions. by in organically X, in our lapping expanded We The grew the pricing first accelerating markets and long Further high-end an the Both extended results. growth, sustained continue our X% world road of margins, same FX strength from adjusted colleagues Slide and in operating employees electronics by grateful year-over-year. deeply cause organic financial markets a quarter accompanied positively and XX% the in us. focused grew reflects safety pass-through record countries adjusted impacted sequential and supporting economy X%, our EBITDA the can of ahead offset protocols. level our see quarter terms, increase the mix the EBITDA drove backdrop. proving On automotive challenging company the top quarter currency safety under metal operate constant pandemic time, At who positive by businesses. remain of our and far reflects is and metals. This pass-through translation improved across line and hope pace respectively. remained in partially and of security XXXX. which growth a margin is industrial-oriented many all basis to pace priority, expense over global our and points there's of XX muted Asian XX%, XX%. XXXX by operate. The that the for and in resilient, of first in that we of Volume COVID-XX

accelerates fully. We more expect begin course pace and OpEx vaccination to the reopen increase over the to year of sequentially of economies as the

OpEx grow manage than to sales. expect we to However, less

Adjusted EBITDA ability will adjusted the earnings-per-share margin, Our management. excess million of profit, capital of and interest in to through expense lower XXXX business metal lower of the through adjusted operating rate, Assembly of quarter bond Carey Carey? in improvement of sales our excluding allocation in was adjusted EBITDA growth it a you Solutions XX% growth pass-through tax earnings-per-share our compound XX.X%. take and our the in growth more the in impact $XX due prudent refinancing detail. quarter to first liability reflects performance our now and demonstrates well

Carey Dorman

automotive and in electronics growth quarter, with at organic Thanks, declined markets everyone. XX% Global automotive sustained organic high rates. double-digit detail in market XXXX. electronics their Solutions of in net Slide QX automotive power in Strong drivers demand particularly in in beginning XX% demand, Assembly our shutdowns Asia. business all late three the from segments. of electronics the sequentially, morning, demand levels and additional and we the two Electronics consumer drove shared Ben. growth Good lapped growth first as X, was On COVID-XX lap we for on Organic verticals growing sales the of

Assembly in QX in Solutions Electronics vertical only was that of the declined XXXX.

and margins driven mobile solutions year-over-year, and EBITDA demand end grew sales experienced vertical assembly strong similar the due market advanced a basis, our a grow XXX inflation lag significantly. offset leverage to improved with wafer Our the grew and drivers modest. to effect. margins increases passed by they year-over-year also in this inflation, contractually On positive profit. on Semi these cases, China no primarily these both seeing net cost in for in and quarter margins metals Electronics by other demand passing raw In organically operating our for Despite We XX% quarter on products. plating more points, inflation as Other electronics. automotive higher inputs. input organically was sales to in on for Circuitry XX% Americas typically adjusted most contribution the price impacts. and segment customers, mix are although increased work impact Metals with them material the and expanded significantly to customers, basis both to year-over-year. We modest price Solutions dollars

to be which packaging weaker-than-expected basis, quarters. recovering net was showed declines in driven by Industrial XXXX sheet. XXXX generated flow Solutions markets, as the energy and by corrugated cash organic in Solutions. packaging impacted of early $XX Specialty million the Solutions in prices. Slide a XX% Energy the quarter, Graphics five was back organically difficult have increased net demand by impacted X% growth pandemic first modestly increasing first the the QX we impacted quarter. Asia. in comp continues energy X% first the Industrial Asia, balance that spiking XX% Graphics by as business higher Industrial year. stabilized down from in the to The in and organically, offset We cash of coming grew sales Solutions the and at sales dynamics was the in Solutions last & demand levels. sequentially on weak year-over-year a two Graphic volatile sequential organically to compared of This consumer by only rebound quarter on addresses COVID-XX declined grew QX flow year. expect to a prices business Energy For free unique

XXXX August. of our QX QX Our cash flat interest two items, roughly free our incentive payment, to annual which last these be XXXX. bond after to QX payments for and would semiannual compensation Adjusting refinancing flow moved from

capital safety raw by differentiate demand a use The other the approximately growing driver, of stocks due $XX and need combination prices, working large we primary business Inventory driven the cash difficult year-end disruption. supply we compared can increased times, of for global In million. to in continuity. was $XX ourselves in to sequential million the chain quarter increased of through XXXX, approximately build believe was by the material higher-than-expected

to QX of As XXXX, customers. we deliver the stocks continue could made increase ensure safety our decision this did we to the to we our beginning for in at

million we cash free XXXX, increase capital EBITDA expectations cash to working expect tax we expectations. of flow. and year updated adjusted $XXX increase now year, and partially by This for look offset for is our As full the an by in driven our generate to approximately investment

all Ben. of XXXX credit our And ratings by X.X Moody's either to that, or continued of recognized and to notches. was were with and Our net it strong S&P QX will upgrading leverage at I corporate debt by the We pleased back position see turn one end both times. our instruments two that

Ben Gliklich

Thanks, Carey.

can we're see updating the our On Slide X. on the back you guidance of for in the which quarter, XXXX, strength first

expect market strategies overall, very against compelling are We our this healthy. to our to value We from growth. executing markets the results quarter. believe secular trends beyond our teams remain record drove benefit continue capture that to well And

and expectation past increases by greatest We're of lower guidance out. results quarter million, year quarter is of million represent up several with This adjusted and of between $XXX modestly EBITDA uncertainty a second expect our XX% adjusted expectation the is rising These $XXX seen adjusted pandemic over as million. our dollar. $XXX the approximately driven our impact raw from in prior slightly is million back from top the to over second this negative from on guidance $XXX OpEx we've pandemic. growth the half a approximately growth. experienced would manufacturing annual the impact range approximately result in year-over-year similar year XXXX, to margins, line costs, in how freight we higher This XX%. increasing representing stronger to the We of growth which be XXXX headwinds the driven salary travel full shift EBITDA and to quarters seasonal of based the of play of and of in continues to X% U.S. EBITDA from materials a for the range Embedded

meaningful assume increase full per least raising our adjusted This significant also we In We're $X.XX virus. translates growth. share our for year-over-year the progress at a earnings guidance from relapse than expectation to greater against to $X.XX. XXXX no addition, to to previous $X.XX, undermine of range year XX%

back sheet the guidance this demonstrated bolt-on believe the including assumes we acquisitions, make us rest allocation healthy deploy continue additional acquisitions. strong generation the of to while to and free through range buy cash shares we've flexibility afford no Importantly, flow to our or capital potential balance capital year,

We our seek excess shareholders to dividend quarter the to and expect to capital in XX% of deploy to interest opportunities per continue by cash best share. in the our $X.XX second increase

of line Solutions areas growth our in questions. around growth we Our of quarter. strategy this these all same circuit over and of the power our and driving term. executing board I'd first we longer With the stakeholders for the dedicated benefit wrap investments time, reinforced targeted Solutions, Element results our solutions. trends have world applications, in our and for strength like secular believe responsible people to and with on the support record particular, open sustainable the mega operator, trends the for we're please the demonstrated disproportionately business strategic from resilience quarter Element At like printed to their conviction strategic and our up, and talented electronics that, continued thank high-end To around for now

Operator

of question from Bank America. Byrne will come Steve [Operator Instructions] with our And first

Your line is open.

Steve Byrne

shortage. are to responding on Ben, you. customers the Thank your chip views I'd be to your how curious Yes. hear Electronics

relying For give to share there gain premium they And in Anything shifting that any that the their your road? is lines maybe to what can patterns, more along throughput? problems? example, as moving that are purchasing service a more could they on down accelerate products might you those of such throughput? increase correct to do Or

Ben Gliklich

seen Electronics customers capacity accelerating extra a in recently. as up Yes. Clearly, putting in of supply been we're spend, Thanks has fabricators large We've and space. seeing additional and forward. printed particularly ramps. question, in increasing their where stock the isn't meeting in big ramping for CapEx the building throughput you've supply of going our board it of a products semiconductor And to deal impact And market, so lines, Steve. great seen there's the the bottleneck the significantly their circuit demand, chain, increasing something customers support we've winning that an new having capacity been business and semiconductor

before, conviction long-term firmed. we the significant the and So said not overall, our just a there's there's been also as in but has short term, over tailwind, growth --

Our at to within products our better higher they on better quality, which are end higher end they're industry. the because And yield. translates the provide

to meet taking throughput customers demand. as share that are be insisting And time upon to their so we over to do expect improve

Steve Byrne

you is and out logical here those end have, when expertise in business you adhesion some some synergy the end between your markets, us? to And you and drilling you. of that platforms. is electronics is not innovation and that benefit potentially is technologies your one industrial that just seems in other your would perhaps markets. that have fluids manufacturing the the divest? about that think might The has But that Thank Okay. thinking offshore about shared customers unit. markets that many you of And/or Is some plating that that that jumps end benefits to one obvious lay business the a kind there you on in plating out

Ben Gliklich

all several markets our So attributes. of across portfolio end our shares

what's people. a in than they're customers' but not our products in customers our rely represent on on our light. rely They're formulated small product, so just Our We service, of the overall rather cost. synthesized, technical asset portion

model And quite a an operating so of from there's bit overlap perspective.

While of there from and flow great cash be may certain the of characteristics. same our businesses, but not necessarily with with overlap level strong commercial they're a smaller businesses great perspective margins

of our avenues could high-quality sale. we businesses very improve the for of portfolio. the which additional businesses that portfolio, our breadth capital We're to any be our us for see interesting not up So going for us. give in they allocation, value put of breadth They're

Steve Byrne

Okay. Thank you.

Operator

to [Operator Instructions] Kapsch And now Loop Chris continue Capital will we with Markets.

Your line is open.

Chris Kapsch

Good morning, Ben.

if second in about provide you you builds, color to your respect night what guidance similar what's on on comment other quarter mentioned assuming of full wondering Just year curtailments, automotive production OEs in light with could especially that? just and comments. Ford will contemplated have I'm can last But

Ben Gliklich

absolutely. Yes,

would machinery, industrial Chris, chip growth shortages. But we that that of smaller, was question, automotive more than our offset thanks prepared business remarks, from quarter really other products our into end as coming are although markets and So have business, in like the within auto said relative less for equipment, we really, nicely. building our industrial the we to anticipated they're the in than saw because growing

into anticipate despite we quarter. so space. business industrial in continue the And the slowdown saw we And growth in auto that to the that second

As and quarter, line we've a articulated for with free cash flow. second result our similar top the significantly guidance we expect more

million. how second in shift, and half, COVID a for will of a patterns. the November is we saw clearly real see third regard things down seasonality around in fourth greater slowdown With QX year, sequentially, is biggest question year, a think flow In the opposite, quarter and to in a drives quarter a November I saw impact whereas activity. In the the December XXXX QX. the shift, the $XXX months. we with year, our was typical approach a normal than us manufacturing would continued in December, free last last XX% quarter second year, So peak We in cash were seasonal in that the

the visibility. seen really the seasonal in to phasing manufacturing third automotive a half and half, will our the There's today, out. to for many we so got confidence ways in play the quarter determine relative past fourth -- second what to are first how as And relative that's context otherwise. uncertainty we've the strength And we sit of from level patterns guidance don't quarter will that have and the year can't of we of we've where achieve or us there the full builds good but

Chris Kapsch

start getting and And Can capacity sort the plating -- business your your Any there expecting just industry like on at printed and a seeing you the fair tsunami ecosystem, new what entire electronics the as contribute is in there's follow-up demand growth fair Thanks. share out? of getting plays getting as lag quarter spec really plays year. something color about from then new your out seeing least -- how Thank Or benefit that to out. comments of something -- to is that? is that's Okay. before share something manufacturing this as like of that you're this toward that and brought you is on in being board that the terms is circuit next characterize address built it on of will cycle sort now growth you. for capacity to one and is cycle going

Ben Gliklich

absolutely. Yes, good question, a It's Chris.

we Electronics. our are in that's we our goes the should new helping And including equipment that in equipment manufacturing solution close chemistry that And cases, put visibility third-party So that putting will customers, manufacturer, Automotive equipment. an have into into. the not or equipment in we're We're whether chemistry. what lines, most when have customers to but partners be, with design

piece to of are it those we've business visibility starts three and online. months win coming when as So got anywhere lines We a producing. before six between

those quarters. -- is driver business we're prior the The And through installed so of seeing the the our is now new throughput ultimate sales growth that capacity from lines.

growth. capacity And we capacity isn't the underlying into a our basis, legs. on having sense just have and market have and And that and industry saw sense coming additional for it's great inflection go-forward but clearly, absolute a growth. have share in we for the capacity that's conviction why growth don't volume so additional long moment. we a got say This at visibility we throughput, we And last through there's year underlying we've

Chris Kapsch

you. Thank

Operator

with now Josh Spector go UBS. to We'll

open. line Your is

Josh Spector

Hey, guys. Congrats the guys full ESI on and the great there. team quarter to you

First, second what down of costs sales, of what's about $XX the related talked a question, you And quarter, at sequential are up, of material million. if you about the raw would second back in that flat and catch raw's pullback be terms coming you near items? looking temporary you'd to is the just by cost temporary say but what's other caught up on in bucket EBITDA kind Wondering quarter? term could that, end

Ben Gliklich

Yes.

for thanks question, the So Josh.

captured buckets two the You right.

First, OpEx less we which do sequentially, the seeing sequential with the of The regard progress to COVID, and travel we salary is be are rest than of half material in to against is inflation. increases. would That raw increase impact part addition to to annual expect price driver EBITDA.

Given raw through We the metals second didn't than chain, our COGS other will quarter. materials the supply come big a in in first impact quarter. see

see how hard will that we some so actively because we the With in regard price offset to volatile. taking pressure raw have long to And material speculate persists, quarter are that been it's really that. prices second out to

see And to are through up actions, modest raw long us. a to so customers, the albeit lag price as of year, as over of for be the course increasing in continue materials that may we offsetting front prices we'll and with going

Josh Spector

you'd see we kind should what anything growth? Or stepping at would off versus your perspective, are thinking we I you grow gradual opinion, your recovery in be? I back, do your there at you is typical could Okay. continued a impressive algorithm years And few thought just versus And else guess, from call about? XXXX that. where an of ago. ESI where levels be up here a assuming of we you economic here, XXXX guide appreciate now a it's pretty looking step just

Ben Gliklich

Yes.

in for the focus experiencing, long fair business getting growth. about This So drivers is efforts Element drivers. since XXXX, been trends our we XXXX. this strategy, And There is clearly, blip. on This we share we've are long-term and are faster-growing an of more than value is mega to as are that that growth by of talking we from the accelerated supported market pan. a which execution launched our route not in these growth by our Solutions believe a to in secular flash and not the legs growth subsegments the enhanced took that the our

do supported XXXX, over for integrated And and allow so which them. seeing play allocation. so playing some continue They We've They're to we contributing profit will that growth, the to past deliver to bought to several capital businesses in are successfully what in prudent by forward, would to years. on We've out contributing that's objectives. to growth. and ambitious we're out our us XXXX, going expect continue should

Josh Spector

Got it. Thank you.

Operator

go Koort Bob We'll now to Goldman Sachs. with

open. is line Your

Bob Koort

Good morning. you. Thank

Ben Gliklich

Good morning, Bob.

Bob Koort

a Ben, little restrained flow. of bit you a cash had guys

inventories building through You of then the mentioned And quarter. balance guide through generation the the first more obviously, the suggests prodigious year.

a how group, back metrics. buy running space like public looks so Those XX%, capital in some about cases, some of even It's market have think didn't it deployment? and are just peer stock, you lot XX%, of the do You climbed your in multiples higher.

assets you're should the repurchase on So bigger going toward the tilt in expect we a maybe proceeds? looking at? as what's year And

Ben Gliklich

for the Bob. Thanks question, Yes.

cash allocation part we've per rightly been of has earnings perspective, that had pointed multiple been growth And has we've the Element's always Solutions. strategy You given flow Element sheet share. from prudent in capital been always been strong. regard. a opportunistic We've that balance us compound since EBITDA to healthiest has out,

businesses in back values at we've more buying prior well. but leaned years, good So a attractive stock, buying record toward we've them and track also of pretty integrating built

that so look value And confidence find for forward be and balance to while got our keeping we've here, sheet we'll continuing now market, going healthy. we out are the to able in

Bob Koort

nicely. The the baked very for the so. side, the -- Specialty you Thanks. when Industrial moving is And industrial for look recovery guidance that in you what that year, When Electronics just of you've is & at give obviously, less along segment? cadence

Ben Gliklich

Yes.

strong business, I in XXXX second third the slow very XXXX, quarter surface which Industrial a and So quarter and pretty mean, within it's three still slow industrial in Specialty, a a and we & -- as treatment we've had referred is second the fourth to. we got lapping quarter, the biggest, businesses,

comping would expect to the regard With treatment to levels the saw going that smaller QX buy to you until industrial the in So fourth the a XXXX, food quarter Graphics the run-up It the we a or comp. first in when businesses: followed continue XXXX business, we against couldn't surface we two the packaged big forward against is above and demand by business in here Offshore quarter QX the in Graphics supermarkets. slowdown. perform at was bump

And so we do Offshore to energy expect lag progress on a business. year-over-year recovery. basis and have in Similarly, a price sequentially we in the the graphics business,

energy And and we last well. and lot impact first so which half, business grow into of the in on had year that a as volatility price that quarter, from do the persisted weakness sequentially a to negative here expect second business

a Martin, have your anything with you may had Martin thought allocation? question, to add with Bob. think regard want regard I to capital prior to

Martin Franklin

think our continue ways against to territories, incremental you amount the -- much No, We've significant before, tucking I We've I the and for there. hindsight, of have we're you company done they own to a think value that that's our into to would to and capital look, highest other that dividend tell to are as don't best this is proven, I Ben that if would it ways broader the by to for we're increase can good take that more. those opportunities. use products we and continue those capital. you that to But -- did to you've never I there organization seen return said, I strategic we look going of well. that we're proven think tell probably wish company are as and still with rightly the going and covered think they're think you produce opportunities what that, out going buying stock really tuck-ins finding continue looking Ben shareholders. that's for in and

Bob Koort

Perfect. Thank you.

Ben Gliklich

Bob. Thanks,

Operator

Duffy now Barclays. with Fischer go to We'll

Your is open. line

Unidentified Analyst

Hi, guys.

half. to You Duffy's morning. the roughly little a appreciate dig the I back have seems Good like you're implying just on EBITDA But guide, Sean your million back -- $XXX deeper, from here guess your commentary team. in I half. just in

it think mind? QX, this that Or we would at evenly just push your As split modeling you or to there? the in fair about juncture, way us QX, one other is relatively

Ben Gliklich

Yes.

some customers bigger Or made to earlier, to third in normal will be and about launches again phone what a hard our OEM patterns this slow quarter is major sit of QX than this which be if which QX product typically if what today Sean, manufacturing drew Mobile and were strong it's from would we delayed to quarter. year, of launches, exceptionally ramp in XXXX little right? we a drove based seasonality, an that but comments December, tell bit. fourth part on So November such pushed where quarter, -- have down return a

quarter so strong And we very year. first the into typically saw performance in those of this slow November and December

a have looks like. lapping like, looked QX XXXX we growth year we'll being to be pretty And that expect But So up a hard a XXXX very than level in would what because you ramp phasing strong to QX strong of relative QX QX may the typical very QX. XXXX not to from of the, bigger call QX it, of predict it's relative earnings. given year-over-year in what of XXXX, XXXX. see -- would Whereas same strong the some shutdowns

Unidentified Analyst

your sit may That's outlook assuming And rest cash a top as flow line it. guide as we it continued seems today, free the of conservative. a follow-up. like bit for here quick What just then helpful. be the year, working your strength, very -- just Got capital

So puts sense I just a get to much. and the of wanted takes very there. Thanks

Ben Gliklich

Yes.

the quarter, modest product it, working building by prices capital quite working modest on those build our talking material and were a is additional in there's how going build a of by which Carey, and flow working of anything big investment, to The driven driven our I our current investment raw additional seasonal supply Are to that the of the in and we assumes ultimate in or safety persistent water free sales at going delays there's on continue working cash disruptions add? hold So ports. level we that. about call to want just patterns, depend levels we to stocks, remain. had And chain our first know, some you'd was if increasing having capital assumes, stocks? safety conservatism forecast capital and capital bit don't

Carey Dorman

you all, hit it I No, Ben. think

Ben Gliklich

Sean. Thanks,

Next question.

Operator

[Operator will CJS now Securities. Instructions] Jon Tanwanteng to We with go

Your open. line is

Jon Tanwanteng

for half? pricing your today about you and you to Hey. question. is, baked ability recover talk of out point? there. power your pricing Good in expectations and What's ability second and morning, guys. first Thank one this and your quarter my your margins to back -- into could half Really nice guidance at terms My the inflation taking in please

Ben Gliklich

Yes.

So a price contractual, proven history so, in pass-through -- do our metals. is there. cases, of when In some so. a have can market prices that's go But some an and this like we've our cases, And is with but in not, it's do material which we we in getting there up. ability lag some raw to

pressure price we've from raw margins the do we inflation material quarter expect seen so second year-to-date. some on gross that And in

in to the material We our direction guidance. raw prices aren't taking a of view as from here

back is margin the the think else, reasonably is I And assume Anything Anything consistent for -- the expectation half. second further, that that fair Carey? Jon? with so quarter it's to

Jon Tanwanteng

Yes.

kind mean, your that accruing a including XXXX there. stretch I expectation have. you're Just tell And for Just Are second, in you your of guidance? close a getting to It the like comp? hitting us problem to what's target. already high-class looks

Ben Gliklich

an that ambitious. remains target ambitious It was

it haven't yet. We hit

do. cross we bridge do, we'll if And we when when so that and

Jon Tanwanteng

Fair enough.

Operator

a We will question Josh take follow-up Spector UBS. with from

open. Your line is

Josh Spector

guys. Thanks the for follow-up here. Hey,

XX% in rates above and Earlier talked how it basis, there you OEM the share on levels. is that lower What's you the Just highlight would on But sales it auto going that came than is that's that you organic strength production would characterize XXXX a upside driving expected. business. an Or that? how question in call, Assembly, Or maybe you and is Assembly on gain? about in sustainable?

Ben Gliklich

electronics had in the on greater Asia momentum a performance that in is run, things our in most having electronic is year-over-year that. the it's Certainly, lapped businesses. within year, Assembly a great at business Electronics from industrially is impact Assembly look not just we industrially at oriented There the and end basis, QX you of business the of assembly The high the are the oriented drove strength strength, that few And it General business. last a more a moment. the business. When business. COVID one business, great supporting has we

world, but And which Assembly so auto business growing market, have still on very, And generally value-added vehicle technology leading impact is that great EV have the from projects into our ongoing speaking, did space, OEMs a specialized very in entrants really we the a negative electric nicely. their with over sells highly it, got a category very long-term category of all fleets growing new the are and that electrifying It's trajectory legacy high-margin of products, the the is companies fast. here. products

that And to so we expect Assembly as do see growth continue forward. business we outsized to look

Josh Spector

Thank you. Okay.

Operator

time, it Gliklich we'll to closing for back at this Ben And hand his remarks.

Ben Gliklich

Stay soon. with to speaking for Thanks, you We joining. to Catherine. you look again Thank safe. forward everybody

Operator

your This does participation. program. conclude you for today’s Thank

may at time. You disconnect any

Element Solutions (ESI) 1 May 212021 Q1 Earnings call transcript