The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: John Patrick McNulty - BMO Capital Markets Equity Research - Analyst
: Congratulations on some really, really solid numbers. So I guess the first question would just be on the guide for the Performance Chemicals
business. I mean it looks like you're looking for EBITDA to kind of be flat to up as what you're indicating it. When you look at all the positives and
negatives, it certainly looks like there's more in the positive camp with like -- with resin -- or at least merchant pricing starting to push higher, it
sounds like some of the derivative pricing may be starting to follow that as well and then you have a handful of end markets that will be better
and only offset by a couple that maybe get marginally worse.
So I guess, is there something else that we're missing on that, whether it's raw materials or something else that we should be thinking about that
gives kind of that -- it gives a little more credence to the conservative guide?
Question: John Patrick McNulty - BMO Capital Markets Equity Research - Analyst
: Got it. Fair enough. And then I guess a question on the Performance Materials side. I think in the release around your guidance, there was a comment
we expect to kind of see margins get back to more normal levels. Admittedly, this is a pretty volatile business when it comes to the margins, and
we've seen them push higher because of increased content, et cetera. I guess what do you view as a normal margin environment for this business?
How should we be thinking about that?
Question: John Patrick McNulty - BMO Capital Markets Equity Research - Analyst
: Got it. No, it makes sense. Maybe I can squeeze one last one in, too. Just on the Ingevity 2.0 growth initiatives, I mean, first of all, it was helpful to
kind of -- in walking through kind of the 4 big ones that you're -- that you guys are excited about. I guess does one stand out to you as being closer
to commercialization? And I guess can you help to frame maybe the one that you're the most excited about right now?
Question: Paretosh Misra - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Can you provide some more color on your activated carbon applications and carbon capture technology? Specifically, what kind of changes you
might need to make to this existing activated carbon product that you're selling to the automotive industry? Is there any -- is there different
specifications such as the butane working capacity? Or is that a different process or pretty much the same?
Question: Paretosh Misra - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Very interesting. And then as a follow-up, in your pine chemicals business, sorry if I missed that, but what's the reason for wanting to reduce reliance
on CTO as feedstock? Is that because you think CTO prices will go higher? And will you need to make adjustments to your biorefinery to take these
alternative feedstocks?
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