Innospec (IOSP) Tops Q3 EPS by 14c, Revenues Beat

Innospec (NASDAQ: IOSP) reported Q3 EPS of $1.20, $0.14 better than the analyst estimate of $1.06. Revenue for the quarter came in at $363.1 million versus the consensus estimate of $362.5 million.

Commenting on the third quarter results, Patrick S. Williams, President and Chief Executive Officer, said,

“This has been an excellent quarter for Innospec. The results are entirely in line with the direction we indicated last quarter, indicating that our strategy is a strong foundation for continued success. All of our core businesses showed sales and margin improvements which combined with careful cost control has driven outstanding operating income improvements. Overall, revenue is up 9 percent and operating income before restructuring charges is up 32 percent on the same quarter last year, which gives us great confidence in our business.”

“We have also delivered much improved cash generation, in line with the indications we gave last quarter.”

“Fuel Specialties has combined solid volume growth with an expansion of margins back to the higher end of our expected range, as customers in automotive, marine and power applications continued to value our exceptional technology and service.”

“Performance Chemicals built on its strong performance in the first half of the year, delivering 4 percent sales growth in the third quarter and a significant improvement in gross margins which has helped drive a 28 percent increase in operating income. We feel that continued new product launches are underpinning a steady expansion of our portfolio, which is resonating well with our personal and homecare customers.”

“We have been very clear about our priorities in Oilfield Services and that focus is clearly paying dividends. Not only have we recorded a substantial increase in sales, but margins are now moving sequentially in the right direction, as our recent actions start to come to fruition. We believe that our direction is now well established and that we have further improvement to come.”

“Octane Additives delivered sales as we had indicated, at a rate slightly lower than the same period last year. Overall, the prognosis for this business remains unchanged.”

“Even with our Octane Additives segment slightly down on the quarter compared to 2017, we have increased our adjusted EPS by 20 percent, which is a great achievement in a challenging environment.”

“In our results, we have included a provision for the redundancy costs associated with the closure of our site at Everberg, Belgium, which we announced on October 16, 2018.”

For earnings history and earnings-related data on Innospec (IOSP) click here.

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