Ingevity Corporation (NYSE: NGVT) recently reported its financial results for the second quarter 2024.

Second quarter net sales of $390.6 million declined 19% primarily due to the repositioning of the Performance Chemicals segment which included reducing exposure to certain markets in the Industrial Specialties product line. The decline was partially offset by higher sales in Performance Materials due to improved pricing and strong automotive carbon volumes.

The net loss of $283.7 million and diluted loss per share of $7.81 is primarily due to a Performance Chemicals non-cash goodwill impairment charge of $349.1 million. The impairment charge was the result of internal analysis that reassessed expected cash flows of the segment in light of current performance and expected lack of near-term recovery in our Industrial Specialties product line, resulting in lower volumes and profitability expectations. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) was $101.3 million, down 16% with adjusted EBITDA margin of 25.9%.

Sales in Advanced Polymer Technologies (APT) were down 10% to $47.9 million as higher volumes were more than offset by lower pricing. Segment EBITDA was $9.8 million, down 16% due to lower pricing primarily in Asia, partially offset by lower input costs. Segment EBITDA margin was 20.5%.

Source: Morningstar