PSP Agricultural Solutions sales up 441% in Q4 2015

Date:03-01-2016

Platform Specialty Products’ Agricultural Solutions business posted an increase of 441% in net sales to $476 million in the fourth quarter 2015 compared with $88 million in the prior period.  On a pro forma basis, net sales in the fourth quarter were $476 million against $579 million in the prior period, a decline of 18%.  On a pro forma constant currency basis, net sales declined 3%, primarily driven by de-stocking activities in North America.

Agricultural Solutions' adjusted EBITDA for the fourth quarter 2015 was $87 million vs. $16 million in the prior period, an increase of 444%.  On a pro forma basis, adjusted EBITDA for the fourth quarter was $87 million against $113 million in the prior period, a decline of 23%.  On a pro forma constant currency basis, adjusted EBITDA declined 10%.

Agricultural Solutions' net sales for the fiscal year 2015 were $1,742 million. On a pro forma basis, net sales in the fiscal year were $1.8 billion against $2.2 billion in the prior period, a decline of 16%.  On a pro forma constant currency basis, net sales increased 1%.

Agricultural Solutions' adjusted EBITDA for the fiscal year 2015 was $343 million. On a pro forma basis, adjusted EBITDA for the fiscal year was $346 million against $435 million in the prior period, a decline of 20%.  On a pro forma constant currency basis, adjusted EBITDA decreased 3%.  Excluding the impact of higher corporate spending allocated to the business, the adjusted EBITDA of the Ag Solutions business would have increased by 3% in 2015.

Synergies realized in the fourth quarter were $13 million, totaling $38 million for 2015.  Key organizational design initiatives are complete, and the current initiatives are focused on supply chain, corporate entity consolidation, and product rationalization. In 2016, the Agricultural Solutions business expects in excess of $20 million of incremental synergy savings.