PARSIPPANY, N.J. - AdvanSix (NYSE:ASIX), a diversified chemical manufacturer, has faced an operational disruption at its Frankford, Pennsylvania facility, which has led to reduced production of phenol and acetone. This incident has also affected output at the company's Hopewell and Chesterfield locations in Virginia. According to the company's statement, there have been no health, safety, or environmental issues due to this disruption.
Erin Kane, the President and CEO of AdvanSix, emphasized the company's commitment to safely restoring operations to full capacity and working with customers to minimize the impact of the reduced production. The company anticipates a return to planned utilization rates across its value chain by the end of January and has taken the opportunity to advance maintenance work at its Hopewell facility.
Financially, the disruption is expected to result in an unfavorable impact on pre-tax income, estimated to be between $18M to $23M for the first quarter of 2024. This figure includes the effects of fixed cost absorption, lost sales, and additional costs to purchase replacement products.
The production issues did not materially affect the company's results for the fourth quarter of 2023. AdvanSix will provide more details on its fourth-quarter and full-year 2023 financial results, as well as its outlook, during an investor conference call scheduled for February 16th.
AdvanSix produces materials essential to various end markets, including building and construction, fertilizers, and electronics, among others. The company operates five manufacturing facilities in the United States and is guided by core values such as safety and integrity.
The information in this article is based on a press release statement from AdvanSix.
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