PSP Agricultural Solutions sales decreased 3% in Q3 2017

Date:11-03-2017

Platform Specialty Products’ Agricultural Solutions business (Arysta LifeScience) posted a decrease of 3% in net sales to $424 million in the third quarter 2017 year-over-year; Organic sales decreased 5% in this quarter. Adjusted EBITDA in this quarter was $81 million, an increase of 1%.  On a constant currency basis, adjusted EBITDA decreased 3%.

Chief Executive Officer Rakesh Sachdev said, "Our results for the third quarter of 2017 demonstrated our ability to grow despite near term macro challenges in some of our end-markets. In our Performance Solutions business, continued industry demand for electronic and automotive components and a further stabilization of our offshore energy business helped drive mid-single-digit organic sales growth in the segment.  In our Ag business, we experienced delayed purchasing activity caused by drought conditions in Brazil, which were partially offset by strong growth of crop protection products in North America."

Mr. Sachdev continued, "Third quarter performance also demonstrated our consistent ability to execute against our business plans and cost management initiatives.  During the quarter, we saw adjusted EBITDA increase at a greater rate than net sales.  Our Ag business was able to improve margins on a constant currency basis, despite seeing a sales decline.  In our Performance Solutions business, earnings grew as a result of increased sales in most of our business lines and continued cost synergy realization plans despite pressure from raw material price increases and an unfavorable mix shift.  Looking toward the rest of 2017, we are reaffirming our full year adjusted EBITDA guidance of $810 to $830 million as we expect solid year over year growth in both our business segments."

"As our businesses continue to perform well against our commitments, we are excited about the progress we are making towards separating Platform into two stand-alone public companies.  We believe this is a great opportunity to unlock value for our shareholders and our teams are working expeditiously towards a successful separation in mid-2018," Mr. Sachdev added.