Avient Corp. posted strong financial results in the second quarter, as the firm recovered from pandemic-affected results of 2020.
Sales at Avon Lake, Ohio-based Avient more than doubled to $1.24 billion vs. the second quarter of 2020. The firm's quarterly profit also jumped 166 percent to $69.4 million. Avient is a global maker of compounds and color concentrates and a major North American resin distributor.
"I'm very pleased with our results, as second quarter sales and adjusted [earnings per share] reached all-time highs, driven by our portfolio of sustainable solutions and continued strong demand conditions," Chairman, President and CEO Robert Patterson said in a July 30 news release.
He added that Avient's first year of integration with the Clariant Masterbatch business "has been a tremendous success." But Patterson also said that "none of this has been easy" since Avient "is delivering record results against a backdrop of incredibly challenging conditions, including the ongoing COVID-19 pandemic, significant supply chain disruptions and inflation."
"I'm more proud that we have been able to overcome these additional costs to increase adjusted EPS, while serving our customers and keeping our employees healthy and safe."
Avient officials cited robust demand across all end markets, particularly in consumer applications, where second-quarter sales were up 67 percent.
Second-quarter sales in Avient's Color, Additives & Inks unit grew 176 percent to $624.4 million, with operating income up 168 percent to $86.3 million. The firm's Specialty Engineered Materials unit saw sales growth of almost 52 percent to $240.6 million and operating income growth of 117 percent to $37.3 million.
At Avient's Distribution unit, second-quarter sales were up almost 70 percent to $404.4 million, with operating income up more than 64 percent to $23.7 million.
Looking ahead, Patterson said in the release that "demand continues to be strong, and I remain confident in our team's ability to continue navigating the supply chain dynamics to ensure we deliver for our customers."
On a July 30 conference call with stock analysts, Patterson said that Avient in 2021 has benefited from beginning to raise prices for its products in December and January, before an ice storm hit Texas in February, affecting the U.S. petrochemical supply chain.
He added that supply chain costs in 2021 "have been more significant than people realize. … Just the cost of getting things from place to place is a challenge."
On Wall Street, Avient's per-share price began 2021 at around $39.50 but was at $48.70 in early trading July 30 for an increase of more than 23 percent.