Guardian Industries Resources LLC

Overview Key strengths Key risks One of the most profitable of the global glass producers, with a diverse geographic footprint and low-cost manufacturing base. Exposed to cyclical demand in automotive and construction end markets as well as fluctuating commodity and energy costs, resulting in moderate earnings volatility. Strong position as one of the world?s largest providers of high-value coated plastics to automotive original equipment manufacturers (OEMs). Subject to stiff price competition in its commodity glass markets, worsened by the company?s exposure to the current volatility in Eastern Europe. Strong EBITDA margins of 13-14% compared to other glass manufacturers.Owned by Koch Industries Inc., which is among the world?s largest privately-held corporate groups with high diversity and well-performing businesses across a number

...We expect Guardian to maintain strong credit metrics through 2022 and for the foreseeable future. We expect adjusted net debt to EBITDA of 0x with excess cash of over $600 million. The financial metrics result from conservative financial policies by the company and its parent Koch and lower debt than most other building materials producers. Currently, the company operates with a $1 billion line of credit, which is unrated, and drawn by $204 million. Therefore, we do not forecast any material increases in borrowing in the near term. Our base case assumes favorable repair and remodeling spending to drive good demand, though the heightened potential for a recession in the U.S., European, Asia-Pacific, and Latin American regions present downside risk to our forecast. As a result, we forecast organic revenue growth between 2% and 3% over the next 12 months. With price expectations to increase, sales growth is driven primarily by SRG volume growth due to the easing of supply chain constraints...

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