-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueWhat's Your Sweet Spot?
Are you in a niche that’s growing or shrinking? Is it time to reassess and refocus? We spotlight companies thriving by redefining or reinforcing their niche. What are their insights?
Moving Forward With Confidence
In this issue, we focus on sales and quoting, workforce training, new IPC leadership in the U.S. and Canada, the effects of tariffs, CFX standards, and much more—all designed to provide perspective as you move through the cloud bank of today's shifting economic market.
Intelligent Test and Inspection
Are you ready to explore the cutting-edge advancements shaping the electronics manufacturing industry? The May 2025 issue of SMT007 Magazine is packed with insights, innovations, and expert perspectives that you won’t want to miss.
- Articles
- Columns
- Links
- Media kit
||| MENU - smt007 Magazine
Element Solutions Announces Q3 2021 Financial Results
October 29, 2021 | Element Solutions Inc.Estimated reading time: 3 minutes
Element Solutions Inc., a global and diversified specialty chemicals company, announced its financial results for the three and nine months ended September 30, 2021.
Executive Commentary
President and Chief Executive Officer Benjamin Gliklich said, “Despite a problematic supply chain environment and turbulence in the automotive market, Element Solutions had a terrific third quarter. We grew net sales, maintained strong margins, and generated substantial free cash flow. This is a testament to the persistence of our excellent team all over the world delivering daily for our customers in the face of challenges in raw material procurement, logistics, and ongoing COVID-related matters. It is also a reflection of the powerful secular trends in next generation wireless technology and vehicle electrification propelling our electronics business to record performance. We are off to a running start with the Coventya integration, and the expected benefits of this combination in terms of growth opportunities and cost savings are becoming increasingly tangible just two months after closing.”
Gliklich continued, “While last year we had a very strong sequential and overall performance in the fourth quarter driven by the catch up in production post-COVID shutdowns and delayed mobile launches, the fourth quarter is traditionally slower than the third, and, with headwinds from supply chain disruptions, this year should be no different. Despite a far weaker automotive market, our full-year 2021 adjusted EBITDA guidance today remains in the range we communicated last quarter even before any contribution from our Coventya acquisition. To support top-line growth and build adequate safety stock, we have invested a significant amount in working capital this year. Nonetheless, we expect to grow free cash flow year over year. With the benefit of a full twelve months' contribution from Coventya, our net debt ratio at the end of the quarter would have been below 3.0x, providing us with flexibility to continue to invest in growth and return capital in the forms of buybacks and/or cash dividend increases. Given this dynamic backdrop, it is early to comment on 2022, but our expectations are for robust growth. With the secular trends in our electronics business, an anticipated cyclical recovery in our industrial businesses, and our proven ability to outgrow both of these markets through strong execution, we expect another record year in 2022.”
Third Quarter 2021 Highlights (compared with third quarter 2020)
Net sales on a reported basis for the third quarter of 2021 were $616 million, an increase of 29% over the third quarter of 2020. Organic net sales, which exclude the impact of currency changes, certain pass-through metal prices and acquisitions, increased 13%.
- Electronics: Net sales increased 30% to $399 million. Organic net sales increased 11%.
- Industrial & Specialty: Net sales increased 27% to $218 million. Organic net sales increased 15%.
Third quarter of 2021 earnings per share (EPS) performance:
- GAAP diluted EPS was $0.15 for the third quarter of 2021 and 2020, respectively.
- Adjusted EPS was $0.35, as compared to $0.22 per share in prior year.
Reported net income was $36 million for the third quarter of 2021 and 2020, respectively.
Adjusted EBITDA for the third quarter of 2021 was $132 million, an increase of 29%. On a constant currency basis, adjusted EBITDA increased 25%.
- Electronics: Adjusted EBITDA was $92 million, an increase of 28%. On a constant currency basis, adjusted EBITDA increased 24%.
- Industrial & Specialty: Adjusted EBITDA was $39 million, an increase of 31%. On a constant currency basis, adjusted EBITDA increased 27%.
- Adjusted EBITDA margin remained flat at 21.3% on a reported basis. On a constant currency basis, adjusted EBITDA margin decreased 20 basis points.
Net debt to adjusted EBITDA ratio of 3.1x on a trailing twelve months basis.
2021 Guidance
The Company updated its full-year 2021 guidance and now expects adjusted EBITDA in the range of $515 million to $525 million, and adjusted EPS of greater than $1.35. In addition, the Company expects fourth quarter 2021 adjusted EBITDA to be approximately $118 million and full-year 2021 free cash flow of at least $265 million.
Suggested Items
Element Solutions Increases Second Quarter and Full Year Outlook
07/07/2025 | BUSINESS WIREElement Solutions Inc announced an increase to its full year 2025 and second quarter outlook. For its second quarter, the Company expects net income in the range of $45 million to $55 million and adjusted EBITDA to be approximately $135 million.
Europlacer Expands U.S. Reach with New Eastern Region Representative
06/30/2025 | EuroplacerEuroplacer, a global leader in flexible SMT assembly solutions for High-Mix manufacturers, is pleased to announce the appointment of Photo Chemical Systems as its new representative for the Eastern United States.
TrustPoint Launches Third Satellite and Successfully Establishes First Contact
06/26/2025 | BUSINESS WIRETrustPoint, a pioneer in next-generation space-based positioning and navigation solutions, is proud to announce the successful launch and first contact of its third free-flying satellite, Time Flies, aboard the latest rideshare launch out of Vandenberg Space Force Base on Monday.
CEE PCB Appoints KT Technical Solutions as North American Sales Representative
06/23/2025 | CEE PCBStrategic Partnership Expands CEE PCB’s Reach into the North American Market with a Focus on Customer-Centric Service and High-Quality Manufacturing
Silicon Mountain Implements Vorne XL Production Monitoring System to Boost Efficiency and Visibility
06/19/2025 | Silicon MountainSilicon Mountain Contract Services, a leading provider of custom electronics manufacturing solutions, announced the recent implementation of the Vorne XL real-time production monitoring system.