Ingevity Corporation (NYSE:NGVT) Q3 2019 Earnings Conference Call - Final Transcript

Oct 24, 2019 • 10:00 am ET


Ingevity Corporation (NYSE:NGVT) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings and welcome to Ingevity's Third Quarter Earnings Call and Webcast. [Operator Instructions]

I would now like to turn the conference over to your host Dan Gallagher, Vice President of Investor Relations. Please go ahead.

Dan Gallagher

Thank you, Barack. Good morning, everyone. Welcome to Ingevity's third quarter 2019 earnings conference call. Earlier this morning, we posted a presentation onto the Investors section of our website. If you haven't already done so, I'd encourage you to download this file, so you can follow along on the call. You can find it by visiting under Events and Presentations. For participants who are logged into our webcast, the slide should be visible on the online viewing pane and also available to download on.

On Slide number 2 of that deck, you'll see our disclaimer that today's earnings call may contain forward-looking statements. Relevant factors that could cause actual results to differ materially from these forward-looking statements are contained in our earnings release and in our SEC filings, including our Form 10-K and our most recent Form 10-Q. Ingevity undertakes no obligation to publicly release any revision to these projections and forward-looking statements made during the call or to update them to reflect events or circumstances occurring after the date of this call. Throughout this call, we may refer to non-GAAP financial measures, which are intended to supplement not substitute for comparable GAAP measures.

Definitions of these non-GAAP financial measures and reconciliations to comparable GAAP financial measures are included in our earnings release and can be found on the Investor Relations section of our website.

Our agenda is On slide number 3. With me today are Michael Wilson, President and CEO and John Fortson Executive Vice President and CFO. First, Michael will comment on the highlights of the quarter and review the performance of our two segments. John will discuss our current financial status and our revised guidance for the year, then, Michael will make some closing remarks before we open the line for questions. Mike Smith, President of Performance Chemicals and Ed Woodcock, President of Performance Materials, will join the call for Q&A.

With that, I'll turn it over to Michael.

D. Michael Wilson

Thanks, Dan and good morning, everyone. Thank you for joining us this morning. We appreciate your interest in Ingevity .

If you'll turn to Slide number 4, you'll note some highlights for the quarter. In the face of challenging macroeconomic headwinds, we delivered a strong third quarter performance in line with our expectations. Overall, revenues in the third quarter were $360 million, up approximately 16% when compared to the previous year's quarter.

Our Performance Chemicals segment was broadly impacted by the global industrial slowdown. Offsetting this, we had the benefit of additional revenue and earnings from our acquired Engineered Polymers product line formed through the acquisition of the Capa caprolactone business of Perstorp Holding AB .

At the same time, we saw very strong growth in shipments of our Performance Materials segment's automotive products, accelerating significantly by a step change in orders in