AdvanSix Reports Reduced Production Rates at Its Manufacturing Facilities
PARSIPPANY, N.J.–(BUSINESS WIRE)–AdvanSix (NYSE:ASIX) announced today that it has experienced a
temporary production issue at its Hopewell, Virginia facility related to
the recent severe winter weather. As a result of this unplanned
interruption, caprolactam and resin production have been reduced at
their respective Hopewell and Chesterfield, Virginia facilities. The
Company expects to incur an approximately $30 to $35 million unfavorable
impact to pre-tax income in the first quarter of 2018, including the
unfavorable impact of fixed cost absorption, lost sales, maintenance
expense and incremental raw material costs. AdvanSix has informed its
customers of this force majeure event and is actively working to
mitigate the impact of the reduced output on its customers’ operations.
“We have been safely and diligently working to navigate through and
address the effects of significant weather volatility,” said president
and CEO Erin Kane. “We are confident in our action plan to resolve this
issue and expect the required mechanical work to be completed in
approximately two to three weeks.”
The unplanned interruption has no adverse impact on fourth quarter 2017
financial results. In the fourth quarter of 2017, the Company’s
operational performance was robust including completion of its planned
plant turnaround on time and on budget. AdvanSix will provide an update
and announce its fourth quarter and full year 2017 financial results in
its earnings release and conference call scheduled for February 23, 2018.
About AdvanSix
AdvanSix is a leading manufacturer of Nylon 6, a polymer resin which is
a synthetic material used by our customers to produce engineered
plastics, fibers, filaments and films that, in turn, are used in such
end-products as automotive and electronic components, carpets, sports
apparel, fishing nets and food and industrial packaging. As a result of
our backward integration and the configuration of our manufacturing
facilities, we also sell caprolactam, ammonium sulfate fertilizer,
acetone and other intermediate chemicals, all of which are produced as
part of our Nylon 6 integrated manufacturing chain. More information on
AdvanSix can be found at http://www.advansix.com.
Forward Looking Statements
This release contains certain statements that may be deemed
“forward-looking statements” within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. All statements in this
release, other than statements of historical fact, that address
activities, events or developments that our management intends, expects,
projects, believes or anticipates will or may occur in the future are
forward-looking statements. Forward-looking statements may be identified
by words like "expect," "anticipate," "estimate," “outlook”, "project,"
"strategy," "intend," "plan," "target," "goal," "may," "will," "should"
and "believe" or other variations or similar terminology. Although we
believe forward-looking statements are based upon reasonable
assumptions, such statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual results or
performance of the company to be materially different from any future
results or performance expressed or implied by such forward-looking
statements. Such risks and uncertainties include, but are not limited
to: the impact of scheduled turnarounds and significant unplanned
downtime and interruptions of production or logistics operations as a
result of mechanical issues or other unanticipated events such as fires,
severe weather conditions, and natural disasters; our inability to
achieve some or all of the anticipated benefits of the spin-off from
Honeywell including uncertainty regarding qualification for expected tax
treatment and indebtedness incurred in connection with the spin-off;
fluctuations in our stock price; general economic and financial
conditions in the U.S. and globally; growth rates and cyclicality of the
industries we serve; price fluctuations and supply of raw materials;
adverse trade and tax policies; extensive environmental, health and
safety laws that apply to our operations; litigation associated with
chemical manufacturing and our business operations generally; loss of
significant customer relationships; protection of our intellectual
property and proprietary information; cybersecurity incidents; failure
to maintain effective internal controls; tax reform or other changes in
laws or regulations applicable to our business; and prolonged work
stoppages as a result of labor difficulties. You are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date of this release. Such forward-looking statements are
not guarantees of future performance, and actual results, developments
and business decisions may differ from those envisaged by such
forward-looking statements. We identify the principal risks and
uncertainties that affect our performance in our filings with the
Securities and Exchange Commission, including our Annual Report on Form
10-K for the year ended December 31, 2016.
Contacts
AdvanSix
Media
Debra Lewis, 973-526-1767
[email protected]
or
Investors
Adam
Kressel, 973-526-1700
[email protected]