Financial Data and Key Metrics Changes - Sales for the quarter were $386 million, down 5% year-over-year, with the Avoca divestiture accounting for approximately $10 million or about 2% of the decline [18] - Adjusted EBITDA was $58 million, down 5% year-over-year, including a $1 million impact from the Avoca divestiture [19] - Adjusted EPS, excluding intangible amortization, was $0.26, down 7% from the prior year [22] - The company ended the quarter with total liquidity of approximately $900 million and net debt of $1.1 billion, with a net leverage of 2.7x [23] Business Line Data and Key Metrics Changes - Life Sciences sales were $139 million, up 4% from the prior year, driven by resilient pharma demand and strong performance in injectables and tablet coatings [24] - Personal Care sales were $123 million, down 8% year-over-year, primarily due to the Evoca divestiture, with organic sales declining 1% [32] - Specialty Additives sales were $102 million, down 11% year-over-year, with coatings and construction driving the decline [38] - Intermediates sales were $31 million, down 6% year-over-year, with captive BDO sales declining due to lower volumes and transfer prices [30] Market Data and Key Metrics Changes - Coatings demand was particularly weak in China and select export markets, while construction softness reflected broader market conditions [10] - The company experienced stable demand in consumer-oriented categories at the start of the second quarter [50] - Foreign exchange contributed a favorable $9 million or 2% to sales versus the prior year [19] Company Strategy and Development Direction - The company is focused on executing its strategic priorities, including innovation and globalized initiatives, to drive growth and margin improvement [15][46] - The total cost savings target of approximately $30 million for fiscal 2026 remains on track, with ongoing network optimization and productivity improvements [42][44] - The company aims to deliver structural cost improvements and enhance systems and processes to strengthen planning and performance [64] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing demand softness in coatings and construction but expressed optimism about improving momentum in Life Sciences and Personal Care [8][50] - The company anticipates a gradual recovery in coatings demand, particularly in China, but expects muted demand to persist for a while [90] - Repairs to the Calvert City unit are taking longer than anticipated, impacting the second quarter outlook [51] Other Important Information - The company is advancing several innovative technology platforms that are expected to drive long-term growth across multiple end markets [54][61] - The company is focused on maintaining uninterrupted customer supply while managing production and inventory with discipline [54] Q&A Session Summary Question: Can you talk about the customer outage impacting demand in Personal Care? - Management confirmed that the outages were on the customer side and not related to supply issues from the company. Most outages have been resolved, and recovery is expected in Q2 [72][73] Question: Should we see volumes start to turn the corner in Personal Care? - Management indicated that with the Evoca divestiture now lapped, they expect to see positive volume growth as the year progresses [77] Question: What is the outlook for coatings demand in China? - Management noted that while the market has been challenging, they expect to see easing in the second half of the year, with efforts focused on commercial discipline and innovation [89][90] Question: Where are the most significant risks around global trade issues? - Management highlighted Europe as a key area of focus due to ongoing discussions about cost competitiveness and plant consolidations [97]