January 19, 2024

Huntsman Lowers Expectations

Huntsman Updates Fourth Quarter 2023 Outlook; To Discuss Fourth Quarter 2023 Results on February 22, 2024; Results to be Released After Market Close on February 21, 2024

Download as PDFJanuary 19, 2024 7:00am EST

THE WOODLANDS, Texas, Jan. 19, 2024 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) now expects fourth quarter 2023 adjusted EBITDA to be in the range of $40 million to $45 million compared to our original guidance range of $65 million to $90 million as communicated on October 31, 2023. The lower range compared to prior guidance is primarily due to continued pressure in our Polyurethanes segment, including lower equity earnings and the negative impact of an unplanned outage during the quarter at the Rotterdam, Netherlands facility, which has now been resolved. These are preliminary results and are subject to completion of the corporation’s annual audit process.

Huntsman Corporation will hold a conference call on Thursday, February 22, 2024, at 10:00 a.m. ET to discuss its fourth quarter 2023 financial results. Following some opening remarks, the call will move into a question and answer session.

The earnings press release, including financial statements and segment information, will be distributed after the market closes on Wednesday, February 21, 2024. The earnings slide presentation and prepared remarks will be available at www.huntsman.com/investors after the market closes on Wednesday, February 21, 2024.

Webcast link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=4YckWj4j

The conference call will be accessible via the webcast link and Huntsman’s investor relations website, www.huntsman.com/investors. Upon conclusion of the call, the webcast replay will be accessible via Huntsman’s website.

https://www.huntsman.com/news/media-releases/detail/571/huntsman-updates-fourth-quarter-2023-outlook-to-discuss

January 17, 2024

Mattress Tagging in Europe

Euro bedding giant Aquinos to tag a million mattresses by 2027, starting next year

ByJames Blackman

January 17, 2024

Internet of Things (IoT)IoT

US materials science and digital identification company Avery Dennison is working with European mattress manufacturer Aquinos Group to tag bedding products from 2024 with radio frequency identification (RFID)  technology so fewer go to waste, and the company plays an active role in the circular economy, according to a press statement. The project will make Aquinos the first company in its sector to comply with new European Union (EU) Digital Product Passport (DPP) rules.

Avery Dennison makes labeling materials, bonding solutions, and tagging solutions for industrial, medical, and retail applications. It has engaged RFID specialist TripleR on the project. Aquinos Group is one of Europe’s largest mattress manufacturers and operates 20 European factories. It sells products under the BEKA, Lattoflex, Schlaraffia, Sembella, Superba, and Swissflex mattress brands. It forecasts RFID tags will be used in one million of its mattresses by 2027, and “usher in a new era of transparency and circularity” for the firm.

Data from the RFID tags will connect to Avery Dennison’s atma.io platform via RFID readers as they are scanned, creating a digital twin of their whereabouts and history. Data will show information about the origins and materials used in the production of the mattresses. They will also be scanned at recycling centres so that “product dismantlers” can separate materials from the mattresses more efficiently for recycling, and reuse. Consumers will also be able to scan QR codes with smartphones to access product information before and after purchase.

The EU’s new DPP rules will deliver information about products’ environmental sustainability, accessible by scanning a data carrier. Data will include attributes such as the durability and reparability, the recycled content or the availability of spare parts of a product. The DPP scheme is due to come into force for mattresses in 2027. By then, it will have already shipped a million tagged units, it reckons. DPP rules for mattresses will be active sooner in certain European markets, such as Belgium (by 2025), where Aquinos is based. 

Aquinos said it will be the “first producer to comply with the DPP scheme at a pan-EU scale”. Aquinos and TripleR are in alliance with the Belgian industry association Valumat as part of a collaboration that also includes product dismantlers.

Benjamin Marien, international commercial director for bedding at Aquinos, said: “DPP sets the next important step in circularity. By being the first in the industry to begin compliance, we want to lead by example to inspire the markets, our industry partners, and the bedding sector to advance environmentally responsible practices…. We will use the power of [our] brands to raise external awareness of the importance of DPPs… We are moving bedding sustainability beyond niche implementation to mainstream. This will be crucial to put an end to bedding materials going to waste.”

Michael Goller, senior director for atma.io at Avery Dennison, said: “We are proud to be working on this project with Aquinos and TripleR. Mattresses are complex and bulky products  that require a highly sophisticated sorting and dismantling process. To date, it has proven difficult to do this in a cost-efficient manner – leading to millions of mattresses going to landfill each year. This is precisely why DPPs have been established and we are excited to push boundaries with our partners towards greater traceability, efficiency, and circularity.”

Stefaan Cognie, co-founder at TripleR, commented: “This project is an important milestone and sets a benchmark for how the DPP scheme will operate across Europe to enable sustainability and circularity. We have already developed a digital Identification standard in the bedding industry in Belgium and are engaging with extended producer responsibility (EPR) bodies and mattress associations in different European countries, as well as with the overarching European Mattress Association EBIA to bring DPP compliance to fruition.”

January 16, 2024

Enverge

HOLCIM BUILDING ENVELOPE INTRODUCES ENVERGE SPRAY FOAM

PR Newswire

Tue, January 16, 2024 at 10:07 AM EST·3 min read

Gaco SprayFoam and SES Foam brands have merged under the new Enverge Spray Foam brand name and identity.

NASHVILLE, Tenn., Jan. 16, 2024 /PRNewswire/ — Today, Holcim Building Envelope announces the launch of Enverge^®, an innovative, sustainability-focused spray foam insulation brand with a mission of changing the way the world insulates, creating more energy-efficient buildings and healthier living environments.

Enverge unites two market-leading spray foam brands, Gaco^™ SprayFoam and SES^™ Foam, bringing together over 40 years of experience in providing high-performance spray foam insulation, technical support, building science expertise, and training to the market.

“Enverge has the products, resources, people, expertise, and conviction to become the market leader in the spray foam industry,” says Charles Valentine, President of Enverge Spray Foam. “As the previous owner of the legacy SES Foam brand, it’s rewarding to see Holcim’s commitment to this vision under the Enverge brand. We believe that our customers’ success is our success, and we are committed to serving them with products they can trust, expert guidance they can rely on, and a partnership invested in their success.”

Foundational Beliefs

The new Enverge brand is built on three foundational beliefs:

• Spray foam is one of the best insulating materials due to its superior performance properties, not only because of its high thermal efficiency but also its ability to be a highly effective air, moisture, and vapor barrier. For this reason, Enverge is on a mission to change the way the world insulates, growing spray foam share within the residential and commercial insulation industries.
• The success of Enverge depends on our customers’ success. We lift them up through extraordinary support, collaboration, and training by sharing our knowledge and expertise.
• The Enverge team has top experts in R&D and building science, creating innovative, sustainable products and solutions for our partners.

“We are proud to continue the legacy of excellence of Gaco SprayFoam and SES Foam under the Enverge brand name,” said Jamie Gentoso, President, Holcim Building Envelope and Global Head, Holcim Solutions & Products. “Alongside the portfolio of Holcim Building Envelope brands, Enverge provides high-performance insulating solutions to support Holcim’s mission of building progress for people and the planet. Enverge is a critical piece of our portfolio, providing the construction community with the premier insulating material, tools, and training to build more energy-efficient buildings.”

For more information, please visit www.envergesprayfoam.com.

Note: Only the Gaco SprayFoam name will transition to Enverge Spray Foam. The Gaco portfolio of roof foam and coatings, decking, and waterproofing solutions will remain unchanged, and Gaco will continue to lead and expand in the commercial construction space.

About Holcim Building Envelope
Holcim Building Envelope delivers high-performance solutions that make the entire building envelope more sustainable for customers around the world. We are committed to raising the standards of building solutions by delivering superior quality and innovation while addressing industry needs. Our offerings cover a comprehensive range of residential and commercial roofing, wall and lining systems, insulation, and waterproofing solutions for a variety of industries from construction to marine and aerospace. Our powerful portfolio of brands includes Enverge, Gaco, GenFlex, Malarkey Roofing Products, Duro-Last, and Elevate, the new name for Firestone roofing, wall and lining systems. Visit HolcimBE.com to learn more.

About Holcim
Holcim builds progress for people and the planet. As a global leader in innovative and sustainable building solutions, Holcim is enabling greener cities, smarter infrastructure and improving living standards around the world. With sustainability at the core of its strategy, Holcim is becoming a net zero company, with its people and communities at the heart of its success. The company is driving circular construction as a world leader in recycling to build more with less.

https://finance.yahoo.com/news/holcim-building-envelope-introduces-enverge-150700582.html

January 16, 2024

Leggett & Platt Restructuring in Bedding Products

LEGGETT & PLATT ANNOUNCES RESTRUCTURING PLAN TO DRIVE IMPROVED PERFORMANCE AND PROFITABLE GROWTH

Jan. 16, 2024 7:00 AM ETLeggett & Platt, Incorporated (LEG)

CARTHAGE, Mo., Jan. 16, 2024 /PRNewswire/ —

• Continuing to adapt Bedding Products strategy to advance innovative, higher-value content and provide additional product solutions for our customers
• Optimizing manufacturing and distribution footprint to enhance the efficiency of our business while maintaining ability to service our customers
• Executing plan initiatives expected to generate $40 to $50 million of annualized EBIT benefit when fully implemented in late 2025
• Withdrawing company’s long-term financial targets
• Recording an estimated $450 million long-lived asset impairment charge in 4Q23 related to prior year acquisitions in Bedding Products segment

Diversified manufacturer Leggett & Platt (LEG) announced that it is implementing a Restructuring Plan primarily in its Bedding Products segment and to a lesser extent, in its Furniture, Flooring & Textile Products segment. In response to evolving markets, the Company is taking actions to improve manufacturing and distribution efficiency, advance its product strategy, and further support customer needs. These actions are expected to generate $40 to $50 million in EBIT benefit on an annualized run-rate basis when fully implemented in late 2025.

President and CEO Mitch Dolloff commented, “We are taking actions to create a more focused, agile organization with a portfolio of products and operating footprint aligned with the markets we serve. The bedding market has experienced unprecedented change in recent years and the competitive landscape has continued to evolve. Reshaping our Bedding Products strategy is expected to better position us for long-term success as the leading provider of bedding solutions across the value chain. In addition, optimizing our operating footprint in both Bedding Products and Furniture, Flooring & Textile Products will reduce complexity and enhance the efficiency of our business. Looking forward, we expect to advance key product growth, improve profitability, and drive enhanced value for customers and shareholders.”

OVERVIEW OF INITIATIVES
The major Bedding Products initiatives that are part of the Restructuring Plan include:

• Refocusing Strategy: We are continuing to reshape our Bedding Products business to focus on innovative, higher-value content, driven by customer and end-consumer needs. We are proud of our long history of providing product solutions our customers value and see further opportunities to do so in both innersprings and specialty foam, from components to private label finished goods.
• Optimizing Manufacturing and Distribution Footprint: We plan to consolidate certain locations across the Bedding Products segment, reducing our manufacturing and distribution footprint of 50 facilities to approximately 30 to 35 facilities. Creating a new and more efficient regional distribution network will support our ability to maintain sufficient manufacturing capacity in fewer, higher-output facilities to effectively serve our customers and better align with anticipated future market demand. These actions should allow us to integrate our specialty foam and innerspring capabilities while maintaining market- leading service and product quality levels and improving overall efficiency.

The initiatives outlined above are expected to enable profitable growth through expanded product capabilities and increased content at attractive price points, reduce costs, and create shareholder value.

In Furniture, Flooring & Textile Products we plan to consolidate a small number of production facilities in Home Furniture and Flooring Products to better align capacity with regional demand and drive operating efficiencies. 

FINANCIAL IMPACT
In total, the initiatives are expected to reduce annual sales by approximately $100 million and generate $40 to $50 million in EBIT benefit on an annualized run-rate basis when fully implemented in late 2025, with some of the benefit starting to be realized in the second half of 2024. Additionally, we anticipate receiving approximately $60 to $80 million in net cash proceeds from the sale of real estate associated with the initiatives, with transactions largely complete by the end of 2025.

We expect to incur restructuring and restructuring-related costs of $65 to $85 million, of which approximately half are anticipated to be incurred in 2024 and the remainder in 2025. This includes $30 to $40 million in cash costs, the majority of which are anticipated to be incurred in 2024. In the first half of 2024, we anticipate $20 to $25 million of restructuring and restructuring-related costs (approximately half in cash costs).

LONG-TERM FINANCIAL TARGETS
In connection with the Restructuring Plan, we are withdrawing our previously stated Total Shareholder Return goal of 11–14% and financial targets, including revenue growth, EBIT margin, and dividend payout ratio. Revised financial targets will be issued at a future date. We are not changing our objectives of maintaining our investment grade debt ratings and our current dividend practices.

FOURTH QUARTER 2023 IMPAIRMENT CHARGE
In addition, but unrelated to the Restructuring Plan, we are impairing an estimated $450 million of long-lived assets (primarily intangibles) associated with prior year acquisitions in the Bedding Products segment. Prolonged weak demand and changing market dynamics have created disruption and financial instability for some of our customers. As a result, recent efforts by certain customers to improve their financial position are expected to reduce our future sales and earnings. We are not otherwise updating guidance for, or reporting upon, our fourth quarter 2023 or full year 2023 financial results. These financial results and 2024 full year guidance will be released on February 8, 2024.

https://seekingalpha.com/pr/19591410-leggett-and-platt-announces-restructuring-plan-to-drive-improved-performance-and-profitable?mailingid=34011317&messageid=2900&serial=34011317.388

January 10, 2024

Q4 Chemical M&A Activity

Chemical Deal Results

http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=4th+Quarter+2023