Westlake Corporation Delivers Strong Q4 Results, Exceeds Cost-Savings Targets
The Westlake Corporation, a leading manufacturer of specialty chemicals and materials, has reported strong fourth-quarter results, exceeding cost-savings targets and demonstrating continued growth in both its Housing and Infrastructure Products (HIP) and Performance and Essential Materials (PEM) segments.
During the quarter, each segment delivered year-over-year sales volume and EBITDA growth, with HIP sales increasing 7% driven by strong demand for Pipe & Fittings and siding and trim. Meanwhile, PEM sales volume grew 1%, driven by export market demand and higher polyethylene production levels.
"We're pleased with the progress the team is making to position Westlake for continued earnings growth well into the future," said Jean-Marc Gilson, President and CEO of the company, during a conference call on February 24. "Our decision to mothball two units within our European Epoxy business has allowed us to reduce structural costs and increase efficiency."
The company's cost-saving initiatives have yielded significant results, with total savings for the year exceeding $170 million, surpassing its target of $150 million. This includes a reduction in expenses related to the mothballing of two units within its European Epoxy business, which totaled $75 million during the third quarter.
In addition to cost-saving measures, Westlake has continued construction on its new PVCO pipe to satisfy strong customer demand in the HIP segment. The company's focus on innovation and operational efficiency has positioned it for long-term success, with Gilson noting that the team is making progress "to position Westlake for continued earnings growth well into the future."
Financial results for the quarter include sales of $2.8 billion and EBITDA of $416 million, an increase of 7% compared to the fourth quarter of 2023. This performance demonstrates the company's ability to deliver strong results despite challenges in the market.
The Westlake Corporation has a reputation for innovation and operational excellence, and these latest results demonstrate its continued commitment to delivering value to customers and shareholders. With a focus on cost-saving initiatives, innovation, and operational efficiency, the company is well-positioned for future success."
