Avient (AVNT) - 2024 Q4 - Annual Report

Financial Performance - Avient Corporation reported sales from continuing operations of $3.2 billion in 2024, with approximately 60$3,240.4 million, an increase of 3.1% compared to $3,142.8 million in 2023[205]. - Net income from continuing operations increased by$94.4 million, or 123.7%, totaling $170.7 million in 2024[113]. - Earnings per share attributable to common shareholders increased to$1.86 in 2024 from $0.83 in 2023, reflecting a 123.9$132.5 million, or 67.3%, in 2024 compared to 2023, reaching $329.3 million[125]. - Gross margin improved to 32.6$34.6 million[115]. - Comprehensive income attributable to Avient common shareholders was $79.1 million in 2024, compared to$64.1 million in 2023, an increase of 23.4%[207]. Research and Development - The company invested $98.7 million in research and development in 2024, up from$90.3 million in 2023 and $84.9 million in 2022[28]. - Avient's strategic focus includes amplifying innovation to address evolving market and sustainability needs, supported by a technical workforce of around 1,100 employees[28]. Operational Footprint - Avient operates 102 manufacturing sites globally, with a workforce of approximately 9,200 employees as of December 31, 2024[12][32]. - The company operates globally with 102 manufacturing sites across North America, South America, Asia, Europe, the Middle East, and Africa, indicating a strong operational footprint[83]. Sustainability and Environmental Commitment - The company emphasizes sustainability and performance advantages of its specialized polymers over traditional materials[20]. - Avient maintains a strong commitment to sustainability, aiming to help customers meet their sustainability goals through technologies that improve recyclability and reduce carbon footprints[108]. - The company is subject to extensive environmental, health, and safety regulations, which could lead to increased compliance costs and potential liabilities[59]. - The company may incur additional costs or liabilities due to increasingly strict environmental regulations and potential claims related to plant emissions[46]. Financial Position and Debt - Total debt as of December 31, 2024, was$2,067.0 million, a decrease from $2,080.0 million in 2023[140]. - The company maintains a senior secured revolving credit facility with a maximum borrowing size of$500.0 million, with remaining availability of $211.4 million as of December 31, 2024[144]. - Future obligations total$3,164.6 million, with $247.0 million due in less than one year[148]. - The company has a revolving credit facility that requires compliance with specific financial tests, which could impact borrowing capacity if not met[70]. Cybersecurity - The company has experienced targeted and non-targeted cybersecurity attacks in the past, although no incident has had a material impact on its business to date[63]. - The Chief Information Security Officer (CISO) oversees cybersecurity risk management, reporting directly to the Chief Information Officer (CIO)[78]. - The company emphasizes cybersecurity education for employees and imposes security requirements on third-party service providers[76]. - The company has established a Cyber and Data Incident Response Team (CDIRT) to manage responses to cyber incidents effectively[82]. Market Risks - Fluctuations in foreign currency exchange rates may adversely impact the company's financial results, affecting competitiveness and cost control[67]. - The company manages market risks, including interest rate and foreign currency exposure, through regular operating and financing activities, including derivative financial instruments[176]. - There would be no material impact on interest expense or cash flows from a 100 basis point increase or decrease in market rates of interest on outstanding variable rate debt as of December 31, 2024[177]. Employee Engagement - The company conducts annual employee engagement surveys, with participation from employees in over 40 countries, to support ongoing engagement efforts[44]. Strategic Focus - Avient's refined strategy focuses on intersecting high-growth markets and maximizing the impact of existing business, supported by four strategic drivers: Portfolio Prioritization, Amplify Innovation, Digital for Operational Excellence and Growth, and Leadership, Talent and Culture[107]. - Long-term trends that provide opportunities for Avient include improving health and wellness, protecting the environment, and increasing the need for power and electricity[109].