MIAMI– Element Solutions reported third quarter electronics net sales were $398.6 million, an increase of 29.9% year-over-year. Organic net sales increased 11%.

Electronics adjusted EBITDA was $92.1 million, up 27.9% compared to the third quarter of 2020. On a constant currency basis, adjusted EBITDA increased 24%.

“Despite a problematic supply chain environment and turbulence in the automotive market, Element Solutions had a terrific third quarter,” said Benjamin Gliklich, president and CEO. “We grew net sales, maintained strong margins, and generated substantial free cash flow. This is a testament to the persistence of our excellent team all over the world delivering daily for our customers in the face of challenges in raw material procurement, logistics, and ongoing Covid-related matters. It is also a reflection of the powerful secular trends in next-generation wireless technology and vehicle electrification propelling our electronics business to record performance.

“While last year we had a very strong sequential and overall performance in the fourth quarter driven by the catchup in production post-Covid shutdowns and delayed mobile launches, the fourth quarter is traditionally slower than the third, and, with headwinds from supply chain disruptions, this year should be no different. Despite a far weaker automotive market, our full-year 2021 adjusted EBITDA guidance today remains in the range we communicated last quarter, even before any contribution from our Coventya acquisition. To support top-line growth and build adequate safety stock, we have invested a significant amount in working capital this year. Nonetheless, we expect to grow free cash flow year-over-year. With the secular trends in our electronics business, an anticipated cyclical recovery in our industrial businesses, and our proven ability to outgrow both of these markets through strong execution, we expect another record year in 2022.”

For the first nine months of 2021, electronics net sales were $1.1 billion, up 36.8% year-over-year. Adjusted EBITDA was $275.3 million, growth of 40.1%.