AdvanSix sees FY24 CapEx $140M-$150M

Outlook: Expect nylon industry spreads to remain stabilized near current levels amid weak demand; Anticipate higher Nylon Solutions exports in first half of 2024 year-over-year. Anticipate strong ammonium sulfate seasonal demand supported by continued favorable underlying agriculture industry fundamentals; Expect first half 2024 year-over-year pricing declines amid lower nitrogen pricing environment. Expect balanced to tight global acetone supply and demand conditions. Expect Capital Expenditures of $140 to $150 million in 2024, reflecting increased spend to address critical enterprise risk mitigation and growth projects including our SUSTAIN program. Expect pre-tax income impact of planned plant turnarounds to be $38 to $43 million in 2024 versus approximately $30 million in 2023. Now expect to incur a total unfavorable impact to pre-tax income in 1Q24 of $23 to $27 million as a result of the process-based operational disruption at our Frankford, PA manufacturing site and a delayed ramp to planned utilization rates. “While the previously disclosed operational disruption at our Frankford, Pennsylvania manufacturing site is impacting our first quarter results, our teams have been focused on stabilization of phenol production, which is enabling us to ramp up our Hopewell and Chesterfield manufacturing facilities to our targeted utilization rates. We thank our customers, partners and AdvanSix teammates for their collaboration and agility to mitigate the value chain impact of this event. Our focus remains on performing in the current set of industry dynamics and executing levers in our control, including remaining disciplined on cost and optimizing working capital. Our outlook reflects a continued investment in our long-term potential through both our SUSTAIN program’s planned expansion in granular ammonium sulfate production and increased infrastructure spend in 2024 to mitigate enterprise risk,” CEO concluded Kane.