Versum Materials Q3 Profit Rises

(RTTNews) - Versum Materials Inc. (VSM), global materials and equipment supplier to the semiconductor industry, reported that its net income for the fiscal third quarter ended June 30, 2017 was $52.7 million, or $0.48 per share versus $47.8 million, or $0.44 per share, in the same quarter a year ago, a 10.3% increase.

Strong operating performance and a lower tax rate more than offset $11.9 million of interest expense in connection with the debt incurred upon the separation from Air Products and Chemicals, Inc. on October 1, 2016 compared to none in the same quarter a year ago, and $4.9 million of higher costs related to business separation, restructuring and cost reduction actions.

Excluding the one-time charges related to separation, restructuring and cost reduction actions, net of tax, Adjusted Net Income was $56.6 million, or $0.52 per share, versus $48.9 million, or $0.45 per share, for the third quarter 2016.

Sales for the fiscal third quarter were $290.8 million versus $242.7 million in the same quarter a year ago. This 19.8% year on year increase was largely attributable to strong volume growth from both the DS&S and Materials segments, partially offset by unfavorable price/mix impacts in the Materials segment, primarily in Process Materials.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.44 per share and revenues of $265.64 million for the third-quarter. Analysts' estimates typically exclude special items.

For fiscal year 2017, Versum Materials revised its outlook to estimated sales of $1.090 billion to $1.120 billion and Adjusted EBITDA of $365 to $375 million from prior guidance of $1.020 billion to $1.065 billion and $340 to $355 million, respectively.