PSP Agricultural Solutions sales down 18% in Q3 2015

Date:11-13-2015

Platform Specialty Products’ Agricultural Solutions business recorded a 18.1% decrease to $418 million in pro forma as adjusted sales in the third quarter of 2015 ended Sept 30th. On a constant currency basis, pro forma as adjusted sales grew 3.2% or $13 million.
 
Adjusted EBITDA of Agricultural Solutions in this quarter was $61 million, a decline of 29.2% from $86 million pro forma as adjusted EBITDA in the third quarter of 2014. On a constant currency basis, pro forma as adjusted EBITDA declined 6.9% or $5 million.

Integration and synergy realization in the Agricultural Solutions business has continued to outperform the initial plan. Third quarter 2015 EBITDA includes $13 million of realized synergies and a single Agricultural Solutions sales force is now taking all of Platform's agricultural products to market.

Benjamin Gliklich, Platform's Chief Operating Officer said, "The integration process within Platform's Agricultural Solutions segment continues to be a bright spot for Platform. We are ahead of schedule with approximately $13 million of realized synergies in the third quarter of 2015, for a total of $26 million since the close of the Arysta acquisition in first quarter of 2015. Synergies this quarter represent a run-rate of over $50 million. With the financing marketing almost complete, we are now singularly focused on execution and delivering growth and cash flow to our shareholders."

On October 7, 2015, Platform revised its 2015 guidance to reflect further foreign exchange volatility, continued weakness in certain agricultural end markets, and a decision to limit "pre-season" selling activity in its Agricultural Solutions business segment. As previously stated, Platform expects its 2015 adjusted EBITDA to be within the range of $550 million to $570 million.