Westlake(US:WLK)2025-05-02 19:18Financial Performance - Net sales for Q1 2025 were $2,846 million, a decrease of 4.3% compared to $2,975 million in Q1 2024[11] - Gross profit for Q1 2025 was $232 million, down 50.2% from $466 million in Q1 2024[11] - Net loss attributable to Westlake Corporation for Q1 2025 was $40 million, compared to a net income of $174 million in Q1 2024[11] - Basic earnings per share for Q1 2025 were $(0.31), a decline from $1.35 in Q1 2024[11] - Comprehensive loss for Q1 2025 was $26 million, compared to a comprehensive income of $140 million in Q1 2024[14] - Net income for the three months ended March 31, 2025, was a loss of $35 million, compared to a net income of $185 million for the same period in 2024, representing a significant decline[21] - Cash flows from operating activities resulted in a net cash outflow of $77 million for Q1 2025, compared to a net cash inflow of $169 million in Q1 2024[21] - Other income for Q1 2025 was $37 million, down from $50 million in Q1 2024, with interest income contributing $29 million in 2025 compared to $40 million in 2024[71] Assets and Liabilities - Total assets as of March 31, 2025, were $20,711 million, slightly down from $20,750 million at the end of 2024[9] - Total liabilities increased to $9,790 million as of March 31, 2025, compared to $9,707 million at the end of 2024[9] - Cash and cash equivalents decreased to $2,297 million from $2,919 million at the end of 2024[9] - Retained earnings decreased to $10,373 million as of March 31, 2025, from $10,481 million at the end of 2024[9] - Total accounts receivable increased to $1,656 million as of March 31, 2025, up from $1,483 million at the end of 2024, indicating a rise of approximately 11.6%[41] - Inventories rose to $1,781 million as of March 31, 2025, compared to $1,697 million at the end of 2024, reflecting an increase of about 4.9%[42] - Total long-term debt amounted to $4,674 million, an increase from $4,645 million as of December 31, 2024[46] - The carrying value of long-term debt was $4,592 million as of March 31, 2025, compared to $4,562 million at the end of 2024[56] Shareholder Activities - The company repurchased 279,771 shares of common stock during the first quarter of 2025[16] - The company paid dividends totaling $68 million in Q1 2025, slightly up from $65 million in Q1 2024[21] - Dividends declared per common share increased to $0.5250 for the three months ended March 31, 2025, compared to $0.5000 in 2024[65] Legal and Regulatory Matters - The company has reserved approximately $76 million for damages awarded in a lawsuit related to negligence and trespass at the Natrium Plant[81] - The company is involved in multiple antitrust lawsuits, including claims seeking $861 million in damages from direct purchasers of caustic soda and €1,397 million from BASF for alleged cartel activities[75][78] - The company anticipates that the resolution of various legal and regulatory matters, particularly environmental issues, will take an extended period of time[73] - The company is currently unable to estimate the financial impact of ongoing lawsuits, including those related to ethylene and PVC pipe antitrust claims[78][80] - The company entered into a settlement agreement in 2023 regarding caustic soda lawsuits, but the agreement was terminated after the court rejected preliminary approval in June 2024[75] - The company is defending against a lawsuit filed by PPG Industries regarding indemnification related to a Brazilian lawsuit, with potential implications for financial statements[85][86] Environmental and Compliance Issues - Environmental contingencies reserves were approximately $70 million as of March 31, 2025, down from $72 million at the end of 2024[87] - The company reserved approximately $32 million for monitoring wells and other remedial activities related to compliance orders from the Louisiana Department of Energy and Natural Resources[92] - The company assessed reasonably possible loss contingencies related to environmental matters in the range of $100 million to $170 million[94] - The company is facing uncertainty regarding the potential impact of evolving claims and programs related to natural resource damage and industrial site reuse initiatives[73] Segment Performance - Performance and Essential Materials segment reported a loss from operations of $163 million for Q1 2025, compared to a profit of $22 million in Q1 2024[100] - Housing and Infrastructure Products segment generated an income from operations of $148 million in Q1 2025, down from $210 million in Q1 2024[100] - Total capital expenditures for the consolidated company were $248 million in Q1 2025, compared to $272 million in Q1 2024[100] Cash Flow and Investments - The company reported a net cash used for investing activities of $434 million in Q1 2025, compared to $272 million in Q1 2024, indicating a 60% increase in cash outflow[21] - Cash, cash equivalents, and restricted cash decreased to $2,313 million at the end of Q1 2025 from $3,124 million at the end of Q1 2024, a decline of approximately 26%[21] - The company invested $248 million in property, plant, and equipment during Q1 2025, compared to $272 million in the same period of 2024[21]