Westlake Corporation Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-06
Westlake Corporation Reports Second Quarter 2024 Financial Results
Westlake Corporation (NYSE: WLK) ("Westlake") has announced its second quarter 2024 financial results, highlighting robust performance driven by strong demand and improved profitability in key business segments.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Q1 2024 | Consensus Estimates | Year-over-Year Change | Quarter-over-Quarter Change |
|---|---|---|---|---|---|---|
| Total Revenue | $3.2B | — | — | $3.24B | — | — |
| Earnings Per Share (EPS) | $2.40 | — | — | $1.99 | — | — |
| Net Income | $313M | — | — | — | +$16M | +$139M |
| EBITDA | $744M | $690M | $546M | — | +$54M | +$198M |
Interpretation : Westlake's Q2 2024 revenue of $3.2 billion was slightly below the consensus estimate of $3.24 billion. However, the company's earnings per share (EPS) significantly outpaced expectations at $2.40, compared to the consensus estimate of $1.99. This strong financial performance was attributed to robust demand and increased profitability in its business segments.
Revenue Performance by Segment
| Segment | Q2 2024 Income from Operations | Q2 2023 Income from Operations | Q1 2024 Income from Operations |
|---|---|---|---|
| Housing and Infrastructure | $266M | $190M | $210M |
| Performance and Essential Materials | $157M | $215M | $22M |
Interpretation : Westlake's Housing and Infrastructure Products (HIP) segment demonstrated a strong year-over-year and quarter-over-quarter performance, with income from operations increasing to $266 million, up from $190 million in Q2 2023 and $210 million in Q1 2024. The Performance and Essential Materials (PEM) segment saw a decline in income from operations year-over-year due to lower average sales prices, but exhibited significant sequential improvement from $22 million in Q1 2024 to $157 million in Q2 2024.
Executive Commentary
Albert Chao, Executive Chairman, expressed satisfaction with the financial results, citing record HIP EBITDA and improving trends in the PEM segment. Newly appointed President and CEO, Jean-Marc Gilson, echoed these sentiments and looked forward to driving the company's strategy forward for long-term value creation.
Dividends and Share Repurchase Programs
No information regarding announced dividends or share repurchase programs was provided in the earnings release.
Forward Guidance
The company did not provide detailed forward guidance but highlighted favorable structural factors supporting the HIP segment and steps being taken to improve profitability in the PEM segment, including temporary operational adjustments in Europe.
Stock Price Movement
Following the earnings release, Westlake's stock experienced a decline of -2.60%.
In summary, Westlake Corporation achieved strong second quarter results with notable growth in its HIP segment and improving conditions in the PEM segment. The company continues to navigate global economic challenges effectively, positioning itself for sustained growth and shareholder value.