PSP Agricultural Solutions sales increased 4% in 2016

Date:03-01-2017

Platform Specialty Products’ Agricultural Solutions business posted an increase of 3.6% in net sales to $493 million in the fourth quarter 2016 year-over-year; On a comparable basis, organic sales increased 3.1% quarter-over-quarter. For the full year of 2016, net sales were $1.8 billion, an increase of 4.3% compared to 2015; On a comparable basis, organic sales increased 3.0% year-over-year.

Platform's Chief Executive Officer Rakesh Sachdev stated: "2016 was a successful year for Platform in a number of ways. Our revenue growth accelerated significantly in the second half of the year, and our business overall demonstrated resilience in mixed end markets.  We exceeded our adjusted EBITDA target, generating comparable adjusted EBITDA growth of nearly 6% for the full year on a constant currency basis. Our strong earnings translated into cash flow from operations of $185 million.  Furthermore, we improved our balance sheet meaningfully with the settlement of all our obligations related to our Series B convertible preferred stock, which resulted in savings of approximately $100 million, and the repricing of all of our term loans, which we expect to generate annual interest savings of $26 million.  Finally, we stabilized our management team with a number of key hires who have already made significant contributions to the Company.

Our 2017 guidance and outlook calls for expected adjusted EBITDA of $800 to $830 million and organic earnings growth in both segments. While we anticipate certain global and regional headwinds, we still expect to achieve above market growth in both our businesses. We also plan to deliver further meaningful cost synergies in the Performance Solutions segment and supply chain savings in the Agricultural Solutions segment. At the mid-point, our adjusted EBITDA guidance implies growth of 8% over 2016 on a constant currency basis and is in line with our long term expectations."