The following is a summary of the Ingevity Corporation (NGVT) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Ingevity reported Q1 sales of $340.1 million, a decrease of 13% primarily due to plant closure and exiting from low-margin markets in Performance Chemicals.

• Gross margin declined by 260 basis points to 35.2% due to lower sales in Performance Chemicals and APT, along with higher CTO spends.

• The period witnessed $64.8 million of restructuring charges and $26.5 million of CTO resale losses, resulting in a GAAP net loss of $56 million.

• There was a decrease in adjusted EBITDA and diluted adjusted EPS, reflecting an adjusted EBITDA margin of 22.6%.

Business Progress:

• Ingevity is making progress in repositioning Performance Chemicals and expects potential benefits from an industrial recovery in that segment.

• The company's focus is on business transformation to create more stable and sustainable profitability, with plans to adjust their footprint and cost structure.

• Improvement in volumes for Performance Chemicals has been reported for two consecutive quarters.

• The growing popularity of hybrid vehicles, which require additional activated carbon, opens a strong market for Ingevity products.

• Ingevity is working on certifications for asphalt paving technologies and expects continued growth in Performance Materials based on strengthening auto production industry.

More details: Ingevity IR

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