HOUSTON (ICIS)--During the company's Q1 earnings call, Venator President and CEO Simon Turner expressed optimism for the company's prospects in Q2 and for the second half of the year
Despite declining year-over-year adjusted EBITDA and adjusted diluted earnings per share in Q1, he said market fundamentals for the coming months were positive. In addition, Q1 financials measured more favourably in comparison to Q4 2020 data.
Turner said the company's costs had increased recently, including for raw materials, ore, and oil prices. However, after eight quarters of mostly stable pricing, Venator was able to implement price increases in Q1 for much of its product line to offset these rising costs.
The company's Q1 selling price for products increased by an average of 3% from Q4 2020, and Turner said he expected the company to introduce price increase nominations for each quarter this year due to higher-priced raw materials and energy.
Turner said that the Chinese market experienced even higher raw material costs. As a result, prices among Chinese producers have risen, leading to reduced exports, particularly to the US and Europe.
Turner said he expected most exports from China to stay within Asia, leading to some loosening supply situations in other continents, which would benefit Venator.
For the US market, Turner has a bullish outlook for H2. He mentioned the stimulus and proposed infrastructure spending as factors for boosting demand. He also mentioned manageable input cost increases and a projected decrease in imports.
When combined with current low inventories, Turner expected a favourable climate for producers.
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