Westlake Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a challenging period marked by decreased revenues and profitability compared to the previous fiscal year.
For the third quarter of 2024, Westlake's net sales reached $3,117 million, a slight increase from $3,115 million in Q3 2023. However, for the nine months ended September 30, 2024, net sales declined to $9,299 million from $9,722 million in the same period of 2023, representing a decrease of $423 million. The gross profit for Q3 2024 was $499 million, down from $586 million in Q3 2023, while gross profit for the nine months fell from $2,020 million to $1,629 million. This decline in profitability was attributed to lower sales prices and a $75 million expense related to the mothballing of units in the Netherlands.
Net income for Q3 2024 was $120 million, significantly lower than $295 million in Q3 2023. For the nine-month period, net income decreased to $628 million from $1,009 million. Earnings per share for Q3 2024 were $0.84, down from $2.22 in the same quarter of the previous year. The effective income tax rate for Q3 2024 was 35.1%, compared to 19.2% in Q3 2023, primarily due to a valuation allowance against net operating losses.
Westlake's total assets increased to $21,109 million as of September 30, 2024, from $21,035 million at the end of 2023. Total stockholders' equity rose to $10,662 million, up from $10,241 million at the end of 2023. The company reported a decrease in total current liabilities to $2,351 million from $2,790 million at the end of 2023.
Strategically, Westlake has taken steps to improve its financial performance, including the decision to mothball its allyl chloride and epichlorohydrin units in the Netherlands, which is expected to enhance the profitability of the Pernis site. The company accrued approximately $75 million in expenses related to this initiative in Q3 2024. Additionally, Westlake is involved in various legal proceedings, including antitrust lawsuits related to caustic soda and ethylene, which may impact its financial position.
Overall, Westlake's performance in 2024 reflects the challenges posed by fluctuating market conditions, including lower sales prices and increased operational costs, while the company continues to navigate strategic adjustments and legal matters.
About WESTLAKE CORP
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