Huntsman Epoxy Comments from Investors Call
Let’s turn to Slide number 7. Advanced materials reported adjusted EBITDA of $54 million in the quarter, significantly above last year’s fourth quarter and the best fourth quarter ever despite in aerospace market, which is still some time away from a full recovery. Typically, the fourth quarter is a seasonally weaker quarter. However, the positive momentum in our sales and pricing actions continued into the fourth quarter across our specialty portfolio.
We discussed throughout 2021, our core aerospace business continued to show year-over-year growth with modest improvements in commercial production rates. We estimate that our aerospace EBITDA is approximately $45 million below pre-pandemic levels. In addition, we continue to increase prices across our portfolio in response to raw material and logistic cost inflation. These pricing actions have positive – have positioned us well for improved margins in the first quarter of 2022.
The recent acquisitions of CVC and Gabriel helped to drive our record results in the quarter and the integration of these businesses remained well on track. To date, we’ve achieved $12 million in synergies, and we’re confident that another $11 million will be achieved by 2023. Underlying demand for the Advanced Materials division is tracking well. And as aerospace recover, we expect this division to consistently generate additional EBITDA margins of 20% or better.
We will continue to grow this division organically and through targeted bolt-on acquisitions. We expect the momentum with which we exited the fourth quarter to continue into the first quarter. The combination of improved automotive and aerospace demand synergies in improved margins will drive year-over-year growth. As a result, we expect first quarter adjusted EBITDA to be between $58 million and $62 million, which is an impressive 36% year-over-year improvement at the midpoint of this guidance.
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