Financial Data and Key Metrics Changes - Fourth quarter net sales were $444 million, a decline of 5% year-over-year or 3% lower on a constant currency basis [9][37] - Gross margins were 35.2% in the fourth quarter, impacted by manufacturing absorption, raw material cost increases, and customer production levels [11][40] - Adjusted EBITDA for the fourth quarter was $65 million, with a full year total of $311 million [12][43] - Operating cash flow for 2024 was $205 million, supporting capital allocation priorities including dividends and acquisitions [12][54] Business Line Data and Key Metrics Changes - Asia Pacific segment net sales increased approximately 5% year-over-year, driven by a 5% increase in sales volumes [44] - EMEA segment net sales decreased by 7% year-over-year, with a decline in sales volumes of approximately 4% [46] - Americas segment net sales declined by 8% year-over-year, impacted by lower selling prices and a 1% decline in total sales volumes [49] Market Data and Key Metrics Changes - Market conditions were persistently soft throughout 2024, with a low to mid single-digit decline in aggregate end markets [9][10] - The company expects end markets to grow approximately 1% to 2% in 2025, primarily in the second half of the year [31][81] Company Strategy and Development Direction - The company aims to return to growth, reduce complexity, and enhance shareholder value through disciplined capital deployment [17][30] - Focus on globalizing operations and aligning resources with faster-growing regions, including India and Southeast Asia [20][21] - Emphasis on customer intimacy and improving operational efficiencies to support organic growth [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver above-market performance despite challenging conditions [10][34] - Expectations for gross margins to be comparable to 2024 levels, with revenue, adjusted EBITDA, and earnings growth anticipated in 2025 [34][81] - The long-term fundamentals of the industry are viewed positively, with a focus on managing controllable factors while investing in capabilities [35][58] Other Important Information - The company completed two acquisitions in 2024 and recently acquired Chemical Solutions & Innovations in South Africa [29][56] - A new $20 million cost action plan has been identified, expected to drive approximately $15 million in savings [27][58] Q&A Session Summary Question: Gross margin performance in Q4 and future targets - Management indicated that the historical gross margin target of 37% to 38% is still relevant, with expectations for recovery in Q1 [65][68] Question: Performance in Asia Pacific and growth opportunities - Asia Pacific's success is attributed to new business wins, with plans to replicate this success in other regions [71][76] Question: Expectations for revenue and EBITDA growth in 2025 - Management anticipates gradual market improvement, with a focus on new business gains and a healthy pipeline [80][84] Question: Raw materials expectations for 2025 - Stability in raw materials is expected, with no significant volatility anticipated [90] Question: Volume trends in the Americas - Improvement is expected in the second half of 2025, following a decline in the first half [92] Question: Impact of new capacity coming online - New capacity is expected across Asia and the US, contributing to growth [95][96] Question: Cost savings initiatives and SG&A expectations - Cost savings are primarily targeting SG&A, with expectations for SG&A to be flat to modestly up in 2025 [106][107] Question: Details on the acquisition of CSI - CSI enhances the portfolio in South Africa, supporting growth in the region [109] Question: Capital allocation priorities - The focus remains on investing in the business through M&A and organic growth, with share repurchases considered as opportunities arise [112]