AdvanSix Inc. is looking to better days in 2024 after a challenging 2023, including its nylon resin business.
Sales at AdvanSix, a maker of nylon and specialty chemicals based in Parsippany, N.J., were down 21 percent for the year to a little more than $1.5 billion. The firm's 2023 profit tumbled 68 percent to $54.6 million.
Fourth-quarter sales were down more than 5 percent to $382.2 million, as AdvanSix posted a loss of $5.1 million. It had shown a $33.6 million profit in the same quarter in 2022.
"I'm proud of the team and our continued commitment to driving improved through-cycle profitability," President and CEO Erin Kane said in a news release. "Our healthy balance sheet helped to support our performance through challenging market conditions, particularly in Nylon Solutions."
Full-year sales in AdvanSix's nylon unit were down almost 27 percent to $356.6 million. Nylon ranked third among the firm's four business units in 2023 with a 23 percent share of annual sales.
Officials said that in the fourth quarter, lower nylon pricing due to unfavorable supply and demand conditions affected AdvanSix's results. They added the firm expects nylon industry spreads to remain stabilized near current levels amid weak demand. Officials also said they anticipate higher nylon exports in the first half of 2024.
AdvanSix also is recovering from what officials described as "a process-based operational disruption" at its Frankford, Pa. The event happened in mid-January, reducing production of phenol and acetone at the site, as well as at the firm's plants in Hopewell and Chesterfield, Va. One of phenol's uses is as a feedstock for polycarbonate resin.
Officials said at the time that there have been no health, safety and environmental issues associated with the Frankford event. The firm hoped to return to planned utilization rates across its integrated value chain by the end of January. AdvanSix expected to take a reduction of between $18 million and $23 million in pre-tax profit in the first quarter of 2024 because of the event.
Looking ahead to 2024, Kane said that AdvanSix's focus "remains on performing in the current set of industry dynamics and executing levers in our control."
"Our outlook reflects a continued investment in our long-term potential … [including] increased infrastructure spend in 2024 to mitigate enterprise risk," she added.
On Wall Street, AdvanSix's per-share stock price was up almost 3 percent to $28.20 in pre-market trading Feb. 16.