Company News
December 9, 2020
Tempur Sealy Outlook Improves
Tempur Sealy Provides Market Update
Wed December 9, 2020 6:45 AM|PR Newswire|About: TPX
– Improved Fourth Quarter Adjusted EBITDA Outlook
– Provides Details on Capital Allocation Plan
PR Newswire
LEXINGTON, Ky., Dec. 9, 2020 /PRNewswire/ — Tempur Sealy International, Inc. (TPX) (NYSE: TPX, “Tempur Sealy” or “Company”) today announced that fourth quarter product demand continues to be strong around the world. Management has an improved profitability outlook for the fourth quarter of 2020 compared to the same period last year, and now expects adjusted EBITDA growth of approximately 30% on low double-digit net sales growth. The improvement is driven by stronger than expected U.S. e-commerce and international sales, combined with favorable company-wide margins. The supply constraints that continue to impact the Company’s U.S. Sealy and Sherwood production have been greater than expected.
Tempur Sealy Chairman and CEO Scott Thompson stated, “Tempur Sealy’s global operating scale provides significant cost and sourcing advantages that have helped the team manage the robust sales environment and the industry’s challenged supply chain. Our well-established omni-channel marketing approach has served us well as our online direct-to-consumer Tempur-Pedic and Cocoon by Sealy businesses are experiencing triple-digit sales growth over the comparable prior-year quarter.”
Capital Allocation
The Company’s long-term capital allocation strategy focuses on four areas: repurchasing shares, debt management, investing in operations and accretive acquisitions. The Company today shared additional details on its plan.
The Company is:
- Targeting share repurchases of approximately $280 million for 2020, including approximately $100 million in share repurchases in the fourth quarter.
- Intending to redeem in the first quarter of 2021 $125 million of the $250 million outstanding on the Company’s Senior Notes due 2023, funded by lower cost long-term debt.
- Planning to invest an incremental $150 million over the next three years to support growth initiatives. The Company plans to expand its three existing foam facilities and open one new state-of-the-art foam facility in the U.S. This initiative is expected to increase U.S. pouring capacity for Tempur material and base foam by approximately 50%.
Thompson continued, “Our commitment to serving consumers wherever and however they want to shop with the highest quality products and service has fueled strong demand for our industry leading Tempur-Pedic and Sealy brands and our rapidly growing OEM business. We expect the industry, and specifically the Company’s business, to continue to expand. The new capacity will ensure that we can fully meet the consumer’s demand for our products across the multitude of channels we serve: wholesale, direct to consumer, and OEM.
https://seekingalpha.com/pr/18115526-tempur-sealy-provides-market-update
December 8, 2020
Dow Announces MDI Increase
December 8, 2020
MDI PRICE INCREASE
Effective December 15, 2020, or as contracts allow, The Dow Chemical Company, on behalf of itself and its applicable consolidated subsidiaries (“Dow”), will increase off-list prices by the amounts listed below on all grades and package types of the following MDI products in North America:
ISONATE US $0.05 / lb.
ISOBIND US $0.05 / lb.
PAPI US $0.05 / lb.
Thank you for your continued business with Dow. Please contact your Account Manager if you have any questions related to this communication.
December 8, 2020
Dow Announces MDI Increase
December 8, 2020
MDI PRICE INCREASE
Effective December 15, 2020, or as contracts allow, The Dow Chemical Company, on behalf of itself and its applicable consolidated subsidiaries (“Dow”), will increase off-list prices by the amounts listed below on all grades and package types of the following MDI products in North America:
ISONATE US $0.05 / lb.
ISOBIND US $0.05 / lb.
PAPI US $0.05 / lb.
Thank you for your continued business with Dow. Please contact your Account Manager if you have any questions related to this communication.
December 8, 2020
Covestro Raises Forecast
Raised EBITDA and FOCF forecast for fiscal year 2020
Covestro raises its forecast for EBITDA and Free Operating Cash Flow (FOCF) in fiscal year 2020 as a consequence of a better than expected business development in the fourth quarter 2020. The new expectation exceeds the previously provided financial forecast as well as current capital market expectations.
Capital market expectations are based on the average values of latest consensus estimates of financial analysts, published by Vara Research on November 16, 2020.
Covestro adjusts its forecast for fiscal year 2020 as follows:
- EBITDA is expected between EUR 1,440 and 1,500 million. The previous guidance projected an EBITDA at around EUR 1,200 million. The adjustment of the guidance is primarily due to a better margin development in the segments Polyurethanes and Polycarbonates. Consensus expects this number to be EUR 1,199 million.
- Free operating cash flow (FOCF) is expected between EUR 400 and 550 million. The previous guidance projected FOCF between EUR 0 and 300 million. The adjustment of the guidance is mainly the result of an increased forecast for EBITDA. Consensus expects this number to be EUR 309 million.
- Core volume growth is expected – unchanged – to be below previous year (in 2019: +2.0%). This decline is now expected between -5% and -6%.
The 2020 annual report will be published on February 23, 2021.
December 8, 2020
Covestro Raises Forecast
Raised EBITDA and FOCF forecast for fiscal year 2020
Covestro raises its forecast for EBITDA and Free Operating Cash Flow (FOCF) in fiscal year 2020 as a consequence of a better than expected business development in the fourth quarter 2020. The new expectation exceeds the previously provided financial forecast as well as current capital market expectations.
Capital market expectations are based on the average values of latest consensus estimates of financial analysts, published by Vara Research on November 16, 2020.
Covestro adjusts its forecast for fiscal year 2020 as follows:
- EBITDA is expected between EUR 1,440 and 1,500 million. The previous guidance projected an EBITDA at around EUR 1,200 million. The adjustment of the guidance is primarily due to a better margin development in the segments Polyurethanes and Polycarbonates. Consensus expects this number to be EUR 1,199 million.
- Free operating cash flow (FOCF) is expected between EUR 400 and 550 million. The previous guidance projected FOCF between EUR 0 and 300 million. The adjustment of the guidance is mainly the result of an increased forecast for EBITDA. Consensus expects this number to be EUR 309 million.
- Core volume growth is expected – unchanged – to be below previous year (in 2019: +2.0%). This decline is now expected between -5% and -6%.
The 2020 annual report will be published on February 23, 2021.
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