Luxfer Holdings PLC (NYSE:LXFR) Q1 2023 Earnings Conference Call April 27, 2023 8:30 AM ET

Company Participants

Michael Gaiden - VP, IR and Business Development

Andy Butcher - CEO

Steve Webster - CFO

Conference Call Participants

Michael Leshock - KeyBanc Capital Markets

Chip Moore - EF Hutton

Operator

Good morning. My name is Melinda, I'll be your conference operator today. Welcome to Luxfer's First Quarter 2023 Earnings Conference Call. [Operator Instructions]

Now I will turn the call over to Mike Gaiden, Vice President of Investor Relations and Business Development from Luxfer. Mike, please go ahead.

Michael Gaiden

Thank you, Melinda. Welcome, everyone, to Luxfer's first quarter 2023 earnings call. With me today is Andy Butcher, Luxfer's Chief Executive Officer; and Steve Webster, Luxfer's Chief Financial Officer.

On today's call, we will provide details of our first quarter performance as reported in the press release issued yesterday. Today's webcast is accompanied by a presentation that can be accessed at luxfer.com. Please note, any references to non-GAAP financials are reconciled in the appendix of the presentation.

Before we begin, a final reminder that any forward-looking statements made about the company's expected financial results are subject to future risks and uncertainties. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Please refer to the safe harbor statement on Slide 2 of today's presentation for further details.

Now I will turn the call over to Andy for a summary comments on the quarter and our outlook, after which Steve will provide details of our financial results and 2023 guidance. Andy will then offer some additional comments before Q&A.

Andy, please go ahead.

Andy Butcher

Thank you, Mike, and welcome, everyone.

Please turn to Slide 3. I'm pleased to share with you details of our first quarter performance. Our team at Luxfer continues to drive hard for our customers and to execute effectively in a challenging environment.

These efforts helped us to deliver adjusted EPS of $0.20 in line with our earlier outlined expectations. Sales increased 4.4% with both business segments posting constant currency sales growth.

Transportation and general industrial sectors weighed on our sales volumes and profit performance. We are seeing increasing signs of macroeconomic softness in these areas with our order book is lower year-over-year, impacted by destocking as well as project delays in alternative fuels.

We are enacting additional pass-through initiatives to offset higher input costs. We demonstrated important progress at Gas Cylinders on this front. So we see incremental weakness in select portions of our business, we remain confident in achieving sequentially higher EPS.