Element Solutions Inc (NYSE:ESI) Q2 2023 Earnings Conference Call July 27, 2023 8:30 AM ET

Company Participants

Varun Gokarn – Senior Director of Strategy and Finance

Ben Gliklich – Chief Executive Officer

Carey Dorman – Chief Financial Officer

Conference Call Participants

Josh Spector – UBS

Kieran de Brun – Mizuho Securities

John Roberts – Credit Suisse

Bhavesh Lodaya – BMO Capital Markets

Chris Kapsch – Loop Capital Markets

Jon Tanwanteng – CJF Securities

Steve Byrne – Bank of America

David Silver – CL King

Operator

Good morning, and welcome to the Element Solutions Q2 2023 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

I would now like to turn the call over to Varun Gokarn, Senior Director of Strategy and Finance. Please go ahead.

Varun Gokarn

Good morning and thank you for participating in our second quarter 2023 earnings conference call. Joining me are our Executive Chairman, Sir Martin Franklin; CEO, Ben Gliklich; and CFO, Carey Dorman. In accordance with Regulation FD, or Fair Disclosure, we are webcasting this conference call. Any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Element Solutions is strictly prohibited.

During today's call, we will make certain forward-looking statements that reflect our current views about the company's future performance and financial results. These statements are based on assumptions and expectations of future events that are subject to risks and uncertainties. Please refer to our earnings release, supplemental slides and most recent SEC filings for a discussion of material risk factors that could cause actual results to differ from our expectations and predictions. These materials can be found on the company's website at www.elementsolutionsinc.com in the Investors section under News & Events. Today's materials also include financial information that has not been prepared in accordance with U.S. GAAP. Please refer to the earnings release and supplemental slides for definitions and reconciliations of these non-GAAP measures to comparable GAAP financial measures.

It is now my pleasure to introduce Element Solutions' CEO, Ben Gliklich.

Ben Gliklich

Thank you, Varun, and good morning, everyone. Thank you for joining. Element Solutions reported sequential adjusted EBITDA growth in what we believe is the trough of the most severe dislocation in the electronics market in recent history. Key drivers and inputs to the electronics market, such as smartphone shipments and semi-production declined more than 10% year-over-year, and this impacted our results. We believe we outperformed our markets and are pleased to see indicators of a recovery in our order book and the electronic supply chain generally as we entered the third quarter.