Earnings call transcript Q1 2023

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Operator

Good morning, ladies and gentlemen, and welcome to the Element Solutions Q1 2023 Financial Results Conference Call. Today's call is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

Thank you. the and to Finance. turn Director Gokarn, now Strategy of will call Varun over Senior I Please ahead. go

Varun Gokarn

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

Ben Chairman, Joining our Sir Gliklich; and Martin me CFO, Executive Franklin; are Dorman. Carey CEO,

Fair without FD, conference redistribution, consent is Element the rebroadcast express with or are call this strictly Any we Solutions or written accordance webcasting Disclosure, prohibited. In in retransmission of Regulation this call. any form of

of our on reflect to views that cause www.elementsolutionsinc.com make results. events certain section expectations risks forward-looking can company's website to Please supplemental & to During slides performance and about in of from and subject most today's call, differ be future company's Events. refer Investors that recent the our predictions. we will These discussion risk statements statements actual assumptions found future current could and material SEC release, These results financial at earnings expectations the uncertainties. a filings and are our are that based the materials News on and factors under for

Today's these with GAAP. definitions GAAP refer materials not the that information slides to supplemental release financial non-GAAP of U.S. measures earnings and to and Please metrics. in prepared reconciliations also for financial been include accordance has comparable

now It to Ben introduce my pleasure Gliklich. is Element Solutions' CEO,

Benjamin Gliklich

you joining. everybody. for Thank Thank you, morning, and Varun good

markets adjusted EBITDA cost end impact more continued reported mobile. economies quarter, Solutions despite softened markets diversification financial and Element We delivered key sequentially decline first Portfolio in and Asian the grew in its broadly. and In electronics end of our the line like on results in softness guidance, containment with commitments.

last driven electronics reflects middle performance began and across the broad-based has sales year that the the malaise industry. declines organic Our consumer in volume of

sales over quarter first we EBITDA our quarter that was X% XXXX. largest were ESI. sales of Notably, and down for since Organic the launched

in by offset in Electronics was in results I&S partially that Industrial offshore & Specialty. a Western in markets an The segment XX% solid was X% and sales included by organic decline automotive quarter's segment resilience the production. growth This energy buoyed recovery

the Demand playing expected is and out entering Europe, largely we year. the soft, in as Americas while

been When Lunar will However, recovery New recover uncertain, has in China demand reopening than in electronics remains expected. post-COVID Asia and Year second but for good are slower optimism. half and in markets reasons there

utilization rates into increased expect QX follow. late should customers and sectors Semiconductor and QX in related

into semiconductor, While only leading a indicator. go portion are line they our of front of a sales electronic end

spots There were bright in QX.

electronics accelerated very well customer Our power traction and electronics markets when rates for well production as outsized certain applications continued to bodes perform EV recover. offerings for new and growth industrial

growing solid. been is Commercial Our energy and ahead business solutions technical our also expectations. execution of has

raw strategic This the to focus at maintaining driving and resources in the deflation prices certain that remainder when not of long-term through improvement cost in We're of the still the side, it the to margins in supply market spending benefit in growth. logistics cost our in On areas driving from sequential expect is We're and we tighter G&A. gross control needed and process a also normalization discretionary enforcing we're on through a beginning materials, recovery coming arrives. continue year. support to investing chain efficiencies and the

should Given costs expected reduce business, variable the not levers our in the nature to materialize. cost additional have fully we of demand half second

exceptional remain on services. focused delivering and teams products our Commercially,

grow. markets and markets that as technologies customers chemistry vehicles, electric electronics Our support such will sustainable and XG-enabled solutions, attractive

we entered opportunities. demand better XXXX and an often effectively exit to deploy when environment such our to high We believe generate and uncertainty Periods may into continue year believe we returning continued it. investments share unique will this capital earnings. that also low to expect per We've compound of market positioned than be

take will business our through quarter you in Carey detail. more now results first Carey?

Carey Dorman

three, Thanks first morning, can a summary On of financial quarter see our slide you Ben. everyone. results. Good

year-over-year last the high significant quarter. strength year's QX adjusted a sales demand markets smartphone sales. in business. contributed XX%. currency organic the reduced reflects end quarter high X% record and supply declined in XXXX, against in sales margin carryover and in In our substantially EBITDA driving electronics Organic XX% constant experienced XXXX, chain same Those first declined decline The of sales profit comparison reduction tough disproportionate profitability

strength Our net roughly sales both EBITDA percentage four points. by in the adjusted dollar a also impacted U.S. and were by

Our weakness business in in organically due up and X%, industrial primarily business China. the new which improved energy Industrial & customer sales our grew offset in Specialty graphics, offshore ramp segment to activity treatment in surface

benefited Our constant points of sequentially In higher from margin adjusted improving terms, year-over-year. costs. declined as basis million EBITDA first margins gross material raw currency X% XXX adjusted $XXX quarter EBITDA was

negatively Electronics impacted segment semiconductor and by partially pass-through circuitry adjusted impacted volume in EBITDA by were margins applications, mix. metals margin segment by was declines margin higher prices. Industrial negatively offset reduced

QX raw prices XXXX. basis improved reflecting from were tin as and such margins modestly from much higher a metals EBITDA on experienced and that as year pass-through materials Significantly XXXX, tailwind headwinds as to to sequentially points well easing deflationary. margins nonmetal Adjusted last logistics relative XX silver through QX we were slight the of lower

in impact assembly metal EBITDA the of $XX business, XX% our pass-through quarter. sales would adjusted in have margin been solutions the the first Excluding our of million

phone detail on our we electronics demand most in additional four, the impact. segments. material mobile the electronics, had two slide drivers On net of and organic growth consumer In show sales

for business electronics vehicles. Our automotive resilient, remains electric particularly

accelerated. In power production continued electric quarter, as nicely the first to electronics grow of high-end vehicles

levels organically, reflecting semiconductor overall of semiconductor However, XX% reduced fabs. utilization declined solutions

as is and less only electronics. declined towards weighted consumer it mobile Assembly X%

of hardware persistent saw as Customers chain continued while last year. mobile smartphone the organically other supply XX% declined across from lower solutions volumes, production the weakness production declined. Circuitry meaningfully also end electronics

in comparing early period our a storage in and against disk computing Additionally, memory particularly of benefited performance we data that are strong cloud business XXXX.

improve in second the of customers We disk XXXX. to expect from smartphone both memory suppliers demand half and

automotive X% production organic the China global solid. quarter, saw West, the remains in business For in in automotive first in X% our Industrial strong organically Overall, with year ago, Specialty quarter, increased solutions declined but the the Industrial the demand markets line slowed in as industrial construction & and first levels net in European soft in year-over-year. sales we and resilient auto production China. a was which performed from

recovery quarter. Third-party on second pushed out this estimates auto business cautious of acceleration China in and have view production in a been inform the more sequential

with in activity rebounded. Graphics has new reflecting in has and far. and only solutions offset pricing, sales the solutions spot, a quarter growing organically XX% Energy drilling inflation by ramp increased organically bright partially production business were sales as the which thus X%,

this growth We for throughout business expect year. the continued

flow working sheet. cash $XX build. the first addresses inventory five which a seasonal $XX We a Slide investment into in cash million flow and million reflects capital, including balance generated of free quarter,

which This quarter quarter, CapEx million, our was projects notes. as get $X This senior annual we in should million initiatives below and made year. run we semiannual also integration ground. off number interest $XX the this growth expect rate certain outstanding the our cash on is ramp payment for the

to Turning balance the sheet.

million rate January at XXXX. to our slight the extended XXXX times, currency maturity Our the opportunistically a previously swaps March, and cross of January of In X.X that of XXXX. quarter mature of the interest was end the or we increase $XXX end date from in were net leverage half set roughly ratio to

cash but this actions increase by expect this interest mitigate rate million help these interest future will roughly year, We risk. $X

rate XXXX. And more on until are our over maturities than years. XXXX split fixed structure fixed term loan next the XXX% now is XX% evenly and Swap capital three until our rate

We no and have liquidity debt strong. until remains maturities position XXXX our

Ben. And with that, to back I it will turn

Benjamin Gliklich

Carey. Thanks

the business Europe what and was we've markets. been to the reluctant end due quarter a are seen we the quarter. second markets weaker in exited Asian anticipated and to sequential resilient, environment to than date, From a our steep in forecast Americas in While improvement first has the electronics demand we generally in

approximately expect pricing This material gross sequential EBITDA million. commercial to to and selling execution activity, ongoing more be improvement assumes We from improvement benefit modest sequential deflation. days a due adjusted and raw margin $XXX

the our range. full year. guidance Our conversations still We to suppliers free end lower million generate roughly which of to second flow million low support We'll $XXX the XXXX with $XXX demand to a translates growing million the prior cash customers of be full for half baseline, expect inflection of still expectation off year. the year in of $XXX and our the

and operating we've profitability preserve prior demonstrated market weakness as ability expense of reduce to in periods Our remains.

present However, significant you us restructuring expect a program. should not to

does all this not growth. of Our market invested long-term We've in to markets and the in disproportionately markets. primary ongoing culture, and our trajectory our pocket capability drivers a to company are are how positioned costs in the of they are air our demand long-term spending engine resilient business. from view We're our our we benefit people, and and the that the of for environments, in the team our down conscious have key and and change considerate growth moat

We're with breakthrough in the take to cost how ability of environment, customers market on in the objectives, team is short term. acceleration without this key and sales strategic pipeline executing focus growing its losing and advantage to our pleased supporting end discipline

You should continue. expect to that

particular, stakeholders I support, for up, of world. the all and in dedicated wrap would to continued our To around thank their people our like talented

With open for questions. please that, operator, the line

Operator

Instructions] [Operator

UBS. of question first the line Your from Josh with Spector comes

open. Your line is

Joshua Spector

of to ask about how my here the just of Yeah. for the wanted rest Thanks cadence thinking the year. Hey, taking through guys. question. I about you're kind

So, about help cost levers you in talked that second the the could half.

You your didn't lowered but range. EBITDA expectations, your lower you

levers weaker different still think one low-end of scenario the with get get Or be to that you're do your that forecasting? we a recovery, a would range you have? if the you can So, you than

Benjamin Gliklich

question, for Thanks the Yeah. Josh.

thought our and guided in would for quarter, dampened like are the million EBITDA we on half $XXX the half-over-half by demand. something we but expectations in the the at first second second of midpoint. in Obviously, million as delivered we quarter half our cadence quarter first expectations, So, first the be $XXX the

increasingly communicating velocity the quarter out the the we first is are thought ramp expected today but in ago, half lower. months likely of of that a second to relative bit a what the exit couple coming is we We

guidance. cost We have on retained in materialize well the year have levers and to that have the would second enter normal case deliver the we expect had inadequate or quarter that ramp magnitude them that all is in as of of doesn't we the second ramp half a to the as entering

the do our we believe ample have on to cost we guidance. entering capacity half yeah, second So, deliver

Joshua Spector

a be too Okay. your the circulating think sales any semi you and Do to a deep way headlines I basically wanted shipments limitations risk I might for about that And there around or some are appreciate on but or have This give comment, to you chemicals to No. flow that. electronic direction? ask in early second. into China. Germany there

Benjamin Gliklich

now, years nimble semiconductor of regulatory our It's materials edge in been dynamic North very electronics I'd our or printed is and compliance. into at for that America. going environment ensure Chinese on couple smaller Korea we than edge less say semiconductor in the assembly a value Taiwan or have leading value high-end and been local is or market Yeah. for a the leading to than boards circuit

So, change we should don't see space. a significant semiconductor in the frameworks impact regulatory

portion end Our these to front already small control. of been semiconductor sorts subject line sales has of of export

big mover a we can not on situation. dynamic needle it's a But see course, what of based today. that's So,

Joshua Spector

Thanks Ben. Okay.

Operator

the Your Credit with next comes line from of Roberts question John Suisse.

open. is line Your

John Roberts

full that compensation in And of target the it a to in the year in your year? the percent some Great. few from the terms of was quarter just later a the accruals doesn't first of to year. that's Thank you reverse quarter SG&A start you're year materialize down would in recovery, spite back those EBITDA if in in there. you. I weaker ago accruing assume much the year only

Benjamin Gliklich

Yeah.

that Josh's as So relates to well. question

year. spring are the as coiling the through move We along cost we

commitments very We reduce being actions would half should I considerate mode, costs say, always expense on to but what but for the a deliver we're adding of -- reduce the entering not have about opportunity, I we're not of costs, right containment demand where plenty costs. now, thoughtful at second reducing not we're cost our moment. in significant would materialize. We're actively taken to us there's of to financial our say, right, spend,

John Roberts

China on And exposure in end lower and markets? circuitry four, the relative assembly business, slide then the the much growth mobile is semiconductor to different assembly for and how the

Benjamin Gliklich

skewed semi exposed the semiconductor and The towards broadly more in circuitry the Yeah. were quarter business in we fourth and outperformed that because automotive circuitry high-end. assembly the the And it's to saw than and electronics first quarter well. as the businesses businesses

a America, in mix, the in insofar that markets, North trend continued for into waiting outperformed And to because business continue as example. higher electronics So, mobile assembly general automotive. has weakness end there's markets that's of expect significantly we bigger presence its would

John Roberts

Thank Okay. you.

Operator

Securities. of next with comes Kieran from Mizuho de Your the Brun question line

line Your is open.

Kieran de Brun

can morning. semiconductor a little Hey, your first in in was changed things XQ. where on I wondering, circuitry, in versus the of terms you good and more dial if have expectations in just how bit were quarter

a and we've into in terms had the year. big of the the the semiconductor I half throughout back few semiconductors announcements some back the think running half beginning from expectations the year they're planning the for handsets some in of players as year, the of their how of as utilization and some on mobile fab revisions of of well of terms in

helpful. would on some of your the just in commentary, changed evolved you XQ, be or that could hover expectations of how have industry So, context the if since

Benjamin Gliklich

Absolutely. Right.

end devices first nearly year-over-year core towards the and in year. ramp wasn't is far So, which the quarter, the Handsets high-end. skewed market would higher end have folks expected is were there. mobile What's electronics, down a timing the in from changed what semi entering the circuitry of being business the XX%

So, second quarter. the the a year, was ramp think some I there talk in entering of

is in a seen have the today assertion. of see we've the couple reference and quarter, supporting Lunar But New post-COVID Year we that out more third China of of a early than coming in lockdowns, strong quarter. is ago did late What we second we tone months recovery points that ramp a didn't

in rates and quarter second about We've semiconductor So, talking troughing and we've recover utilization ramping fab heard QX. July. in mobile quarter about beginning into talking second the OEMs fabricators late to in production the heard

we the these increasingly recovery in a forward. And so, basis And likely. that believe markets is our that's for look

say, would we likely. the is I changed, months more the is half have back and thought a softer in than quarter what's so, ago, second And ramp few would

Kieran de Brun

quick on Great. cash And maybe just then follow-up a flows.

outlook the strong year. You still pretty have for a

amount You a have decent pretty on hand. cash of

the So, priorities remainder we year? as deployment how through go should the maybe capital we think about of

Benjamin Gliklich

Yeah.

reflects So, stable all the business is guide margins in dynamic. environments and that of cash hallmark this flow our strong and

going So, cash to this free million we're generate of year. around flow $XXX

We have hand. on cash

that opportunity our than cost say today actual been. that capital would and is of the cost of higher the cash I it's

certainly to right And so, prudent. we're can do looking markets we're those, now. And We being deployment. regard very going measured to for you believe in like with unique but get in capital opportunities that one very the we're we're be

Kieran de Brun

Great. Thank you.

Operator

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

Your open. line is

Stefan Diaz

Hello. in my Diaz Thanks is for questions. This taking Stefan actually fitting for Angel.

Benjamin Gliklich

Good morning, Stefan.

Stefan Diaz

predicated morning for I I guidance believe -- handset on flat just your believe last year. was last -- in good embedded now. what's full guide being your wondering was the volumes quarter, I

Benjamin Gliklich

Yeah.

has growth, looking end bit infrastructure handsets example, automotive end for increased. actually are have expectation end The forecasts increased. data the improved just Wireless assumptions So, down has markets are expectation first over there. little, have electronics or market changed for a quarter. market, Expectations but other market better. market, a storage The market expectations

but modest than we've year quarter in nothing of dramatic would first realized what that full nothing outlook expect changes, in second quarter. So, and the other I change would our the sort and say,

Stefan Diaz

out Thanks. organic to each be Great. And you embedded able segment? in price versus growth number that would then for volume parse

Benjamin Gliklich

half, seeing each that So, in obviously And we in and improve is we pretty segment? in I price retain very because the the second the we're disclosed the second of volumes improvement to For half half, past. XXXX price first down, of soft. year-over-year. haven't dramatically say benefit would the volume the see that expect

Stefan Diaz

the color. for Thanks Great.

Operator

with the from America. Byrne of of next line Your Bank question comes Steve

Your line is open.

Rock Hoffman

is, customer Hoffman rates? electronics operating which signs by the rates the first Rock also for And region operating you businesses describe the of of kind My higher seeing question is Steve of could This are for industrial Hi. on Byrne. business?

Benjamin Gliklich

Sure.

businesses So, less quarter. was than semiconductor the down higher-end assembly business much the the and first circuitry in

we're so, second the will the circuitry ramp seeing to and businesses the in expect business, And continue And that in and stability you're semiconductor quarter. would benefit second volume that greater we disproportionately. the into that anticipating half

of activity the & significantly, spot which seeing the ramped has organic Asia. persist In through performance we're real where that offshore to Industrial I&S for materially quarter, West growth in has seeing we're drilling we the the and have whereas bright been Europe the year. Specialty the us expect Asia down a relative to The Within industrial first solutions segment, business, business the a business resilient. America North was much segment, in vertical quite stronger in and been meaningful

Rock Hoffman

Thanks. it. Got

drivers growth have year you do new development you'd from share? potential your any to initiatives, strategy like Additionally, this and

Benjamin Gliklich

development the been the of a it's It's conviction can interesting weak outperform great. with strategy traction driving entering seeing we confidence there. is And P&L one detailed going couple market us a at demand technologies. real Look, lot new come years here deeper rates, thorough we're level new a of in the we've and have through we Yeah. for are we're That see and our environment in growth with faster that they and successful program adjacencies but in, profit implementation a hard customer pools we're to that like what customer gives be markets that ramp. as to we traction

Rock Hoffman

Got you. it. Thank

Operator

Tanwanteng comes CJS from line Your with next of Securities. question Jon the

line Your open. is

Jonathan Tanwanteng

Hi. your broader end think at explicitly you scenarios, maybe already XXXX? you questions. or thinking a And forecasting just Ben, your this taking morning. year lighting levels? are recession Thank do actually you those of trough markets Good in my arguably either a get that or within entering for late impacts soft

Benjamin Gliklich

a XXXX. of Yeah. is recovering, of aware fully I in industry the rates. And half. half, down Thanks in the very production still second year-over-year mobile full from in OEMs XX% is the and Look, year markets while was is tone It for said off the participants in quarter. The and economy our peak first in as automotive the risks second market, for from the global during potential in the the ramp question, far market the the the Jon. double-digits

And to broader certainly, trends. we're subject so, macro

We confidence past have second in doesn't been that our but months, over the undermine half ramp. XX the

at half commitments. earlier, have ramp second should to that materialize, to a we continue is on As today months it said deliver disposal And few likely our increasingly levers were not we ago. relative we to where our

Jonathan Tanwanteng

given of Okay. there the we just are then other Great. from but this earlier, be of I EPS on should the And EBITDA updated the know range any do commented you the we low-end can and about be you increased on don't swaps? side? thinking puts interest if how at thinking expense should the given allocation whatever capital takes

Benjamin Gliklich

Yeah.

to is So, today slide EPS $X.XX down allocation about you to QX guide, if our we in our the our to There slide capital guide. of the lower in adjusted to get compare million that range. initial $X.XX earnings reflect our

Jonathan Tanwanteng

Got it. Thank you.

Operator

Capital next line Markets. Chris the question from Kapsch Your comes Loop with of

is open. line Your

Christopher Kapsch

tied secular Yeah. Good electronic intriguing in had downdraft I units for devices your juxtaposition of the that's cyclical semi growth morning. end to witnessed a being the currently. drivers versus question of the markets

coming year, last PCB as maybe you there was lines. even quotation recently as as so, activity click And to and of new the pandemic were a cadence for strong

winning lines, disproportionate were particularly advance more complex devices. for a the those guys You or of number

have this given low completely about -- backdrop? utilization Or on our latent now? how we your -- -- Have at should those capacity should market? they demand macro helping postponed so, they how think that for are Or and wondering are versus they business? deferred I'm And we wins just broader demand run the think or So, trends has being the helping lines buttress your those there rates? about come been

Benjamin Gliklich

question, a Chris. It's Yeah. great

come years, of and delays winning because So, of shortages had business semiconductor chain we were out continues were that of quarter seeing demand market. the the out utilization, haven't There into and but And industry the of in last seen those part reported, that first at capacity more some board of printed either. we issues XXXX. and significant delayed lines some running the supply on fabs in prior those circuit capacity were year lower because actually in been and supply coming lines you're than we issues. before, year chain of not But of as well are has come

So, should the those of as things rates wins. We utilization ramp, see we new increase. benefit should see

confidence those Some earnings new of and outperform conviction flow that recovery our benefit through and Again, can of pull our for markets disproportionately we what strong into lines from our in that's end gives come through operation and businesses. the us and markets.

Christopher Kapsch

they important it. just helpful. some that That's reasons how team our on to proprietary terms particular narrative? the about may have ramp variant you're of your TMT Apple per pretty in specific timing enthusiasm where for of of analysis, curious about And Got content had, that your and half or it. specifically. ramp expectation. optimism visibility How iXX unit area? thinking then at terms the narrative you Is of based around Appreciate some Thanks. piece Capital, the And in -- Loop a second one

Benjamin Gliklich

Yeah. does speaking Without skew No. specific our Chinese smartphone to non-local the OEMs, towards business OEMs. Thanks Chris. any

folks right? And so, are relative content much the We've those the growth. smartphone suggest year, to think in ramp have outperformance you each the sophisticated more after seen launch, following production, than unit more past see less stellar over should about when the stronger several a that We that history in to. would one levered which drive on device platform would be more And do unit we incrementally years. that per we

half together, strong And back so, conviction confidence see in things build again, those year. ramp all the and put a that we'll

Christopher Kapsch

color. the for Thanks

Operator

[Operator Instructions]

comes question with next line CL the of David Silver Your from King.

is open. line Your

David Silver

maybe I your Hi. question Thank in you. on automotive Yeah. particular. outlook morning. sector the for focused Good had a

of one on some that's with secular that predecessors end quote market juxtaposed number touches growth to eloquent an And lines. issues words cyclical variability. segments the both there's and here, my of So a of product

on sense schedule? what you but are that transition And content how versus do broadly And us give goes of you. whether its XXXX the trend think or second you in have half through of penetration. But that of progressing wins of just auto things, improvement in gains contract a industry could Thank of kind as greater businesses then what couple your the envisioned to materializing if experiencing your are you first you the the you're kind or half? more the EV

Benjamin Gliklich

for It's us. recover stopped we're and that market secular is a period question. for electric trend has extended to the been starting And Thanks for it The then here. there key time see been vehicles. is one automotive an market of the of

it's question. So, pretty compound a

So, for gains be time, a starters, it automotive have market value. that driver the margin full reasonably can to course wide should Over of us more over growth outperform in of modest content the where year. the we by a of the XXXX for because should and be a electric market we because units vehicles shift

are lot electronics high-end the into talked We've we're been bright spot where vehicles rates across that's electric vehicles, engine to where a electric continue first business, offering there legacy in combustion fashioners exceptional grow. production more of, there really businesses, growing more quarter industrial our you internal the But our a and some portfolio supporting solutions in about in like nicely, call, than car. our even an in market, could power are

very see supporting to And there's Obviously, there's transition the excited we're something more business we as about. broader progress. EV And opportunities in see transition more industrial that and for even so, power there's it's growth as we portfolio. electronics, electronics this solutions our

David Silver

Great. CapEx budget. question had Okay. maybe a about I your

Could the spending being maybe that than higher $XX of where are amounts the it's in the of little where that directed. discretionary million or discretionary portion years. couple highlight where a last your you. CapEx was slide been the So, you in incremental bit Thank highlighted deck

Carey Dorman

Carey. Thanks for David, question. this the is

I So, I discretionary think around -- start versus with guess, maintenance. call last I'll I the would point

CapEx to business thing call year, as unchanged annually. sales, million, spend years, got our most something higher is of the earnings think I this to plus call X% it, couple we the is well This we would last it, of this well historical $XX really the $XX run that our million under year, this over minus. last So, back to maintenance note we're than in rate important as million, expect that million last that year or I $XX after guided $XX well. year

investments that about this had The are Ben year those few initiatives making things ago. questions we're strategic CapEx doing talked to support a

for So, be in support and a making India, and We're seeing demand long-term investment present, to power labs. an investment we're we're research an other both electronics. and application making in for few to markets from China where customers production

this call through we that XX, back of has starting but the I projects been down to because year. come materials. to again, can So, availability assuming everything not improve, closer actually expect we're to, spend getting it, challenges That's of of one this And done yet.

David Silver

much. very you Thank it. great. That’s Appreciate

Operator

no this will Ben are There closing further at for remarks. to questions the call Gliklich time. back I now turn

Benjamin Gliklich

coming joining. a forward seeing Thanks the very months. to and We much. in Thank you for you weeks look Have good day.

Operator

participation. gentlemen, Ladies and your you this concludes today's Thank for conference call.

may now You disconnect.

Element Solutions (ESI) 27 Apr 232023 Q1 Earnings call transcript