Platform Specialty Products (PAH) Misses Q2 EPS by 4c

Platform Specialty Products (NYSE: PAH) reported Q2 EPS of $0.25, $0.04 worse than the analyst estimate of $0.29. Revenue for the quarter came in at $675 million versus the consensus estimate of $743.33 million.

2015 Guidance

Platform's financial results for the first half of 2015 were consistent with the Company's expectations despite a weak overall agricultural environment. Nevertheless, given the continued strength of the U.S. dollar, management is updating its guidance to reflect adverse foreign exchange effects. Platform's previous guidance was based on foreign exchange rates as of the end of February, and the recent depreciation of global currencies, and particularly the Brazilian Reais, against the dollar is expected to result in a reduction to Adjusted EBITDA (particularly given that two-thirds of Platform's Brazilian earnings typically come in the second half of the year). Based on end of July foreign exchange rates and excluding any impact from the announced acquisitions that have not yet closed, Platform expects adjusted EBITDA to be in the range of $620 million to $650 million compared to initial expectations of $660 million to $680 million.

Any further softening in exchange rates, including the Brazilian Reais, since July is not captured in this revised guidance and may have a further adverse impact on the Company's full-year results for fiscal year 2015. This guidance range assumes growing conditions in Latin America for the rest of the year similar to those last year. Platform intends to update guidance on its Q3 earnings call to refine our full-year outlook, based on whether the indications of softness in the agricultural market seen in the first half persist in the second half, or whether market conditions return to more normal historical levels.

Given the uncertainty over the closing dates for, and the completion of, our previously-announced pending acquisitions, recent equity financing associated with the acquisition of the OM Group's businesses and additional potential financings for the Alent transaction, Platform's EPS guidance is no longer applicable.

Certain risks and other factors that could cause our business results to vary are described more fully in the Forward-Looking Statements disclaimer in this release and in the "Risk Factors" included in our Current Report on Form 8-K relating to this press release filed today with the Securities and Exchange Commission (the "SEC").

For earnings history and earnings-related data on Platform Specialty Products (PAH) click here.

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