Ingevity has posted 17 per cent drop in its net sales of $1.4 billion compared to prior year primarily due to repositioning actions in the Performance Chemicals segment that resulted in the exit of lower-margin end markets. The company reported net loss of $430.3 million and diluted loss per share of $11.85, including pre-tax charges of $688.0 million primarily related to the Performance Chemicals segment.

For the fourth quarter, Ingevity’s net sales of $298.8 million decreased 20% compared to prior year primarily due to repositioning actions in the Performance Chemicals segment that resulted in the exit of lower-margin end markets

“Ingevity’s management team and Board have taken aggressive actions to improve performance and our stronger than expected results are evidence of our solid execution,” said Luis Fernandez-Moreno, interim president and CEO. “We remain focused on our key priorities which are execution excellence, reducing leverage, and portfolio optimization to accelerate the delivery of shareholder value.”

Fernandez-Moreno continued, “Performance Materials had its best year yet, meeting the increased demand for more fuel-efficient vehicles that require the advanced solutions provided by our activated carbon. The segment achieved record sales and EBITDA due to increased volumes, improved price and mix and lower costs. Our focus on manufacturing efficiency was a key component to reduced costs and improved profitability which greatly contributed to the company’s solid free cash flow for the year.

“Advanced Polymer Technologies increased volumes despite continued weak industrial demand, but volume growth was more than offset by adverse mix and selective price concessions implemented to maintain share. 2024 was a transformational year for Performance Chemicals (PC) as we took major steps to reposition the segment, which resulted in significantly improved segment EBITDA margins in the second half.

“As part of the continued review of our portfolio of businesses, we recently announced plans to explore strategic alternatives for the Industrial Specialties product line and North Charleston CTO refinery. We believe this action will further strengthen the PC segment and enable us to focus our attention on higher growth and higher margin opportunities within our portfolio while improving the company’s earnings and cash flow.”