AVON LAKE, Ohio—Lower demand and the impact of recent deals have led materials maker Avient Corp. to lower its earnings expectations for the third quarter and the remainder of 2022.
The firm's adjusted earnings per share guidance for full year 2022 has been reduced by 30 cents to reflect weaker demand conditions and unfavorable foreign exchange, officials with Avon Lake-based Avient said in a Sept. 27 news release.
"The war in Ukraine and related energy supply concerns have further eroded consumer sentiment and demand in Europe, and we have not seen a recovery in Asia from the COVID-19 lockdowns in the first half of the year," Chairman, President and CEO Robert Patterson added.
He also said that the economic environment "is further challenged by rapidly rising interest rates in the U.S., which have negatively impacted demand trends in the Americas" and that "in the near term, we believe current global demand is likely further weakened by customer inventory destocking."
Avient also has been involved in two major deals recently. The firm bought the Protective Materials business of DSM—including Dyneema high-strength fiber—and is selling its resin distribution unit, which ranks as one of the largest in North America.