Revenue declined by 3% year over year to $2.9 billion.
Operating EBITDA was $682 million, marking a 4% decrease from the previous year.
Adjusted EPS (Earnings Per Share) showed a decrease of 6%, coming in at $0.79 per share.
Semiconductor Technologies business witnessed a sequential sales growth of 8% in Q1, and 10% year-over-year.
Volume growth in all segments exceeded expectations, indicating an upwards trajectory.
Significant improvement in cash flow year over year.
Completed a $500 million accelerated share repurchase, retiring a total of 6.9 million shares.
Future Guidance
Revised Full Year 2024 Projections:
Net sales estimation raised to around $12.25 billion.
Operating EBITDA is now expected to be approximately $2.975 billion.
Adjusted EPS forecast adjusted to $3.60, indicating an expected year-over-year growth.
For Q2 2024, net sales are anticipated to be about $3.025 billion, with operating EBITDA at roughly $710 million, and adjusted EPS projected to be $0.84.
Forecast implies a recovery in high-growth areas with volume improvement and reduction in destocking impacts as significant drivers.
Trends, Market Conditions, Sentiment
Electronics Recovery: A notable pickup in semiconductor and electronics market, driven by increased chip demand and normalization of customer inventory levels.
Operational Excellence & Restructuring Benefits: Continued benefits from restructuring actions and a focus on productivity and operational excellence have minimized impacts from past volume declines.
Strong Growth Areas: Investments and growth in semiconductor manufacturing, consumer electronics, water filtration technologies, health care markets, and advanced technologies for hybrid and electric vehicles.
Sustainability Achievements: Exceeded 2030 greenhouse gas emissions reduction goals and focus on sustainability strategies across the product portfolio.
Asia-Pacific and China Market Sentiment: Positive signs of recovery particularly in China with sales volume up 3% year over year, heavily influenced by the recovery in E&I segments.
Future Growth Drivers: AI-driven growth in electronics, anticipated improvements in semi and ICS volumes, recovery in water and industrial end markets.
Notable Quotes
”Our results for the period exceeded our expectations, driven by better-than-expected volumes in all segments.” - Edward Breen, CEO
”We are raising our full year 2024 guidance for net sales, operating EBITDA, and adjusted EPS.” - Lori Koch, CFO
”We remain excited about the growth potential of our businesses, centered around 5 secular high-growth areas.” - Edward Breen, CEO
”More than 80% of our innovation portfolio is expected to advance our customer sustainability roadmap.” - Edward Breen, CEO on sustainability efforts.
Incrementals in H2 expected at around 56%, with a substantial derisking for the latter half of the year - Edward Breen & Lori Koch discussing financial outlook.
