Mexico’s Orbia lowers 2024 guidance, PVC group reports flat Q3 income

HOUSTON (ICIS)–Orbia’s vinyls business reported on Wednesday that Q3 operating income was flat year on year amid lower costs for ethylene and electricity as well lower volumes and prices.

The following shows the financial performance of the company’s Polymer Solutions segment, which includes the Vestolit and Alphagary businesses. Figures are in millions of dollars.

	Q3 24	Q3 23	% Change
total sales	634	677	-6%
Operating income	23	23	0
EBITDA	90	86	5%

Source: Orbia

Orbia attributed the rise in the segment’s EBITDA to lower costs as well as the company’s efforts to optimize production and fixed costs.

Orbia attributed the declines in volumes to challenging business conditions.

COMPANY LOWERS GUIDANCE
For Orbia as a whole, the company expects to report $1.10 billion to $1.15 billion in earnings before interest, tax, depreciation and amortization (EBITDA), down from its earlier guidance of $1.30 billion.

Orbia lowered its guidance because the market had not recovered as the company had expected.

The company’s other segments include the following:

• Building & Infrastructure, which includes the Wavin business. It makes pipes and fittings.
• Connectivity Solutions, which includes the Dura-Line business. It makes telecommunications conduit, cable-in conduit and similar products.
• Precision Agriculture, which includes the Netafim business. It makes irrigation systems.
• Fluor & Energy, which includes the Koura business. It mines fluorspar and makes fluorine derivatives.

Thumbnail shows PVC pipe. Image by Shutterstock.