Platform Specialty (PAH) Q2 2016 Earnings

posted in: Earnings Call, Notes | 0

Platform Specialty (PAH) CEO Rakesh Sachdev called out oil and gas orders as notably weak

“Organic sales declined 2% driven primarily by weak demand from oil and gas end markets and continued softness in the electronics business in Asia.”

Expecting demand to strength in the latter half of the year

“We still expect the electronics demand picture to begin to turn in the second half of the year. Combined with some share gains that we are already seeing, I expect an improvement in the second half.”

Asia microelectronics business hopefully bottomed out during the quarter

“As everybody has been reporting this last quarter we do think we’ve seen pretty much of bottoming in electronics business in Asia with some slight growth in the second half of the year. The drivers are still the same as we have been talking about in the past new releases from Apple for example, etc.”

Their business will benefit as the amount of electronics into automobiles goes up

“We’re very, very confident about our position on a global basis for the auto industry as it relates to both industrial and our electronics business. Clearly electronics content in vehicles is going to continue to grow so regardless of the automotive production itself, the value or the opportunity for us per vehicle will continue to increase. We think we’re really well positioned for the expansion that the automakers are making in localized manufacturing and assembly in Mexico for example and parts of Southeast Asia and Eastern Europe. So even if growth rates of total numbers of units should slow versus the last three or four years, the available content to us per vehicle is going to continue to increase. So we’re very optimistic about the future and our position in the auto business on a global basis.”