MIAMI – Element Solutions, the parent company of MacDermid Alpha, saw an 18% decrease in net sales for the fourth quarter to total $338 million, while full-year electronics sales saw a 1% increase to reach $1.6 billion.

"High-end electronics demand decelerated in the second half of 2022, coinciding with lockdowns and policy shifts that drove a significant slowdown in industrial activity in China," said President and CEO Benjamin Gliklich. "At the same time, after two years of weakness it appears automotive end markets are slowly normalizing and our supply chain channel is clearing. We expect these dynamics to continue in the first half of 2023 and have cautious optimism – but limited visibility – into a more robust recovery in electronics demand in the second half. As a result, we expect 2023 to be more weighted to the second half than a typical year.

"We expect first quarter adjusted EBITDA growth of 1% to 3% sequentially, reflecting a continuation of late 2022 trends. Despite a slower run rate entering the year, we expect adjusted EBITDA to be roughly flat on a constant currency basis for the full year. While we remain excited about the long-term growth trajectory of our business, we will not lose focus on nimbly navigating these uncertain short-term dynamics through disciplined cost management and process improvement. We continue to take actions designed to protect profits, generate free cash flow to reinvest behind our businesses and keep our company well positioned to capitalize on the compelling long term growth trends propelling our markets forward," he said.