WEST PHARMACEUTICAL SERVICES INC
For the period ended Mar 31, 2025. Filed Apr 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 24, 2025
WST$399.81+1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-24.
0000105770-24-000081
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0000105770-25-000036
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 113 current paragraphs.
68 unchanged; 38 reworded; 7 added; 23 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
In recent months, the U.S. government has imposed additional tariffs and trade restrictions on certain goods produced outside of the United States. In response to these actions, certain jurisdictions, including China, Mexico, Canada and the European Union, have imposed or are considering imposing tariffs and restrictions on certain goods produced in the United States. We continue to monitor this dynamic situation to assess the impact of these tariffs on our business and actions we can take to minimize their impact. Based on the information available at this time, we do not believe the impact will be material to our 2025 results.
Current report
(1)During the three months ended March 31, 2025, the Company recorded charges of $17.8 million related to restructuring programs. The Company recorded $16.4 million of the charge within other expense (income), related to severance and acceleration of depreciation and lease costs in connection with the Company's 2025 restructuring plan. The remaining $1.4 million of expense, recorded within selling, general and administrative expenses, relates to our plan to optimize the legal structure of the Company and its subsidiaries.
Current report
Proprietary Products -Proprietary Products operating profit increased by $4.3 million, or 3.4%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$2.4 million, due to the factors described above, most notably higher plant absorption from increased customer demand and sales price increases.
Current report
Contract-Manufactured Products -Contract-Manufactured Products operating profit decreased by$3.6 million, or 21.1%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$0.2 million, due to the factors described above, most notably plant spend for additional manufacturing capacity to support the GLP-1 business.
Current report
Other Nonoperating Expense (Income)
Current report
Other nonoperating expense (income) was $0.2 million and $0.0 million for the three months ended March 31, 2025 and 2024, respectively.
Current report
Debt and credit facilities – The total debt balance of $202.6 million at March 31, 2025 is consistent with the total debt balance at December 31, 2024.
Removed paragraphs (23)
Previous report
(1)Restructuring and other charges were a benefit of $0.9 million in thethree and nine months ended September 30, 2024. The net benefit represents the impact of two items, the first of which is a $2.5 million benefit recorded within other expense (income) related to revised severance estimates in connection with the Company's 2022 restructuring plan. This benefit was partially offset by $1.6 million of expense recorded within selling, general and administrative expenses in connection with a plan to optimize the legal structure of the Company and its subsidiaries. The expense consists primarily of consulting fees, legal expenses, and other one-time costs directly attributable to this plan. Restructuring and other charges of $0.1 million for the nine months ended September 30, 2023 represent the net impact of an inventory write down of $0.9 million within cost of goods and services sold and a $0.8 million benefit within other expense (income) for revised severance estimates in connection with its 2022 restructuring plan.
Previous report
(3)During the three and nine months ended September 30, 2023, the Company recorded a benefit of $3.8 million within other nonoperating expense (income)as a result of a favorable legal settlement related to a matter not included in our normal operations.
Previous report
(4)During thethree and nine months ended September 30, 2023, the Company recorded expense of $3.3 million within other expense (income), as a result of an impairment of one of the Company's cost investments.
Previous report
(5)During thenine months ended September 30, 2023, the Company recorded expense of $11.6 million within other expense (income), as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.
Previous report
Consolidated net sales decreased by $73.4 million, or 3.3%, for the nine months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.2 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $4.3 million, consolidated net sales for the nine months ended September 30, 2024 decreased by $69.3 million, or 3.1%, as compared to the same period in 2023.
Previous report
Proprietary Products – Proprietary Products net sales decreased by $83.0 million, or 4.6%, for the nine months ended September 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.4 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $4.3 million, net sales for the nine months ended September 30, 2024 decreased by $78.3 million, or 4.4%, as compared to the same period in 2023, due to a decline in sales of certain high-value product offerings due to customer inventory management, primarily Westar® components, FluroTec® products and Daikyo® components. These reductions were partially offset by an increase in sales of self-injection device platforms and NovaBrand products, as well as increased sales prices.
Previous report
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $9.6 million, or 2.3%, for the nine months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.6 million. Excluding foreign currency translation effects, net sales for the nine months ended September 30, 2024 increased by $9.0 million, or 2.2%, as compared to the same period in 2023, primarily due to an increase in sales of components associated with injection-related devices and sales price increases.
Previous report
Consolidated gross profit decreased by $126.1 million, or 14.8% for the nine months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.1 million for the nine months ended September 30, 2024, as compared to the same period in 2023. Consolidated gross profit margin decreased by 4.6 margin points for the nine months ended September 30, 2024, as compared to the same period in 2023.
Previous report
Proprietary Products gross profit decreased by $130.8 million, or 16.8%, for the nine months ended September 30, 2024, as compared to the same period in 2023. Proprietary Products gross profit margin decreased by 5.5 margin points for the nine months ended September 30, 2024, as compared to the same period in 2023, primarily due to lower plant absorption from reduced customer demand and an unfavorable shift in mix of products sold from HVP Components to HVP Delivery Devices. These headwinds were partially offset by increased sales prices and approximately $22 million in customer incentives in connection with volumes achieved during the nine months ended September 30, 2024, as compared to the same period in 2023.
Previous report
Contract-Manufactured Products -Contract-Manufactured Products gross profit increased by $2.1 million, or 7.8%, for the three months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.1 million. Contract-Manufactured Products gross profit margin increased by 1.3 margin points for the three months ended September 30, 2024, as compared to the same period in 2023, primarily due toproduction efficiencies.
Previous report
Contract-Manufactured Products gross profit increased by$3.8 million, or 5.3%, for the nine months ended September 30, 2024, as compared to the same period in 2023. Contract-Manufactured Products gross profit margin increased by 0.5 margin points for the nine months ended September 30, 2024, as compared to the same period in 2023, primarily due to increased sales prices.
Previous report
Consolidated SG&A costs decreased by $5.5 million, or 6.2%, for the three months ended September 30, 2024, as compared to the same period in 2023, due primarily to lower annual incentive compensation and decreased costs related to professional services, offset by increased salary and wages.
Previous report
Proprietary Products SG&A costs decreased by$3.4 million, or 1.9%, for the nine months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of$0.2 million. Proprietary Products SG&A costs decreased primarily due to lower annual incentive compensation.
Previous report
Corporate SG&A costs decreased by$7.8 million, or 11.4%, for the nine months ended September 30, 2024, as compared to the same period in 2023, primarily due to a decrease in expense related to stock-based compensation and lower annual incentive compensation, offset by increased salary and wages.
Previous report
Proprietary Products other expense (income) changed by $3.0 million for thenine months ended September 30, 2024, as compared to the same period in 2023, primarily due to increased losses on foreign exchange transactions and increased contingent consideration expense, offset by a decrease in asset impairments being recorded in the nine months ended September 30, 2024, as compared to the same period in 2023.
Previous report
Corporate and unallocated items changed by $14.7 million for thenine months ended September 30, 2024, as compared to the same period in 2023, primarily due to the Company recording expense of $11.6 million as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment and the Company recording expense related to impairment of one of the Company's cost investments of $3.3 million in the nine months ended September 30, 2023. Neither of these items occurred in the same period in 2024. Additionally, the Company recorded a benefit of $2.5 million related to revised severance estimates in connection with the Company's 2022 restructuring plan in the nine months ended September 30, 2024, as compared to a benefit of$0.8 million recorded in the same period in 2023.
Previous report
Consolidated operating profit decreased by $16.0 million, or 9.0%, for the three months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.9 million for the three months ended September 30, 2024, as compared to the same period in 2023.
Previous report
Proprietary Products operating profit decreased by$131.0 million, or 24.0%, for the nine months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of$0.2 million, due to the factors described above, most notably lower gross profit driven by lower sales volume and an unfavorable mix of products sold.
Previous report
Contract-Manufactured Products -Contract-Manufactured Products operating profit increased by$0.8 million, or 3.8%, for the three months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of$0.1 million, due to the factors described above, most notably theincreased sales prices.
Previous report
Contract-Manufactured Products operating profit increased by$2.8 million, or 5.3%, for the nine months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of$0.1 million, due to the factors described above, most notably the increased sales prices.
Previous report
Excluding the unallocated items, Corporate costs decreased by$7.5 million, or 10.9%, for the nine months ended September 30, 2024, as compared to the same period in 2023, due to the factors described above, most notablythe decrease in expense related to stock-based compensation and lower annual incentive compensation.
Previous report
Equity in net income of affiliated companies increased by $0.2 million for the three months ended September 30, 2024, as compared to the same period in 2023.
Previous report
Debt and credit facilities – The $4.2 million decrease in total debt at September 30, 2024, as compared to December 31, 2023, is due to the net activity of debt repayments and borrowings as mentioned in Note 8, Debt.
Reworded paragraphs (38)
Previous wording
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three and nine months ended September 30, 2024:
Current wording
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three months ended March 31, 2025:
Previous wording
During thethree and nine months ended September 30, 2024, we recorded a tax benefit of $2.7 million and $19.3 million, respectively, associated with stock-based compensation.
Current wording
During thethree months ended March 31, 2025, we recorded a tax benefit of $1.7 million associated with stock-based compensation.
Previous wording
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three and nine months ended September 30, 2023:
Current wording
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three months ended March 31, 2024:
Previous wording
During thethree and nine months ended September 30, 2023, we recorded a tax benefit of $12.0 million and $31.3 million, respectively, associated with stock-based compensation.
Current wording
During thethree months ended March 31, 2024, we recorded a tax benefit of $10.9 million associated with stock-based compensation.
Previous wording
(2)During the three and nine months ended September 30, 2024 and 2023, the Company recorded$0.2 million and$0.6 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired duringthe second quarter of 2020. During thethree and nine months ended September 30, 2024 and 2023, the Company recorded $0.6 million and $1.6 million, respectively, of amortization expensein association with an acquisition of increased ownership interest in Daikyo.
Current wording
(2)During the three months ended March 31, 2025 and 2024, the Company recorded$0.2 million of amortization expense within operating profit associated with an intangible asset acquired duringthe second quarter of 2020. During thethree months ended March 31, 2025 and 2024, the Company recorded $0.4 million and $0.5 million, respectively, of amortization expensein association with an acquisition of increased ownership interest in Daikyo.
Previous wording
Consolidated net sales decreased by $0.5 million, or 0.1%, for the three months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $2.9 million. Excluding foreign currency translation effects, consolidated net sales for the three months ended September 30, 2024 decreased by $3.4 million, or 0.5%, as compared to the same period in 2023.
Current wording
Consolidated net sales increased by $2.6 million, or 0.4%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $11.7 million. Excluding foreign currency translation effects, consolidated net sales for the three months ended March 31, 2025 increased by $14.3 million, or 2.1%, as compared to the same period in 2024.
Previous wording
Proprietary Products – Proprietary Products net sales decreased by $1.1 million, or 0.2%, for the three months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $2.2 million. Excluding foreign currency translation effects, net sales for the three months ended September 30, 2024 decreased by $3.3 million, or 0.5%, as compared to the same period in 2023, due to a decline in sales of certain high-value product offerings due to customer inventory management, primarily FluroTec® products, NovaBrand products, Westar® components and Daikyo® components. These reductions were partially offset by an increase in sales of self-injection device platforms, approximately $19 million in customer incentives in connection with volumes achieved during the three months ended September 30, 2024, as compared to the same period in 2023, and increased sales prices.
Current wording
Proprietary Products – Proprietary Products net sales increased by $3.5 million, or 0.6%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $9.7 million. Excluding foreign currency translation effects, net sales for the three months ended March 31, 2025 increased by $13.2 million, or 2.4%, as compared to the same period in 2024, due primarily to an increase in sales of self-injection device platforms, partially offset by a decline in sales of FluroTec® products.
Previous wording
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $0.6 million, or 0.4%, for the three months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.7 million. Excluding foreign currency translation effects, net sales for the three months ended September 30, 2024 decreased by $0.1 million, or 0.1%, as compared to the same period in 2023, due primarily to a decrease in sales of healthcare diagnostic devices, offset by growth in self-injection devices for obesity and diabetes.
Current wording
Contract-Manufactured Products – Contract-Manufactured Products net sales decreased by $0.9 million, or 0.7%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $2.0 million. Excluding foreign currency translation effects, net sales for the three months ended March 31, 2025 increased by $1.1 million, or 0.8%, as compared to the same period in 2024, due primarily to an increase in sales of self-injection devices for obesity and diabetes, offset by a decrease in sales of healthcare diagnostic devices.
Previous wording
Consolidated gross profit decreased by $23.6 million, or 8.2%, for the three months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $1.0 million for the three months ended September 30, 2024, as compared to the same period in 2023. Consolidated gross profit margin decreased by 3.2 margin points for the three months ended September 30, 2024, as compared to the same period in 2023.
Current wording
Consolidated gross profit increased by $1.7 million, or 0.7%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $3.6 million for the three months ended March 31, 2025, as compared to the same period in 2024. Consolidated gross profit margin increased by 0.1 margin points for the three months ended March 31, 2025, as compared to the same period in 2024.
Previous wording
Proprietary Products -Proprietary Products gross profit decreased by $25.7 million, or 9.8%, for the three months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.9 million. Proprietary Products gross profit margin decreased by 4.2 margin points for the three months ended September 30, 2024, as compared to the same periods in 2023, primarily due to a shift in sales mix from HVP Components to HVP Delivery Devices, which have lower profitability. Profit was additionally impacted by lower plant absorption at our HVP Component plants from reduced customer demand. These headwinds were partially offset by approximately $19 million in customer incentives in connection with volumes achieved during the three months ended September 30, 2024, as compared to the same period in 2023, and increased sales prices.
Current wording
Proprietary Products -Proprietary Products gross profit increased by $3.1 million, or 1.5%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $3.3 million. Proprietary Products gross profit margin increased by 0.3 margin points for the three months ended March 31, 2025, as compared to the same periods in 2024, primarily due to higher plant absorption from increased customer demand and sales price increases. These were offset by a shift in sales mix from HVP Components to HVP Delivery Devices, which have lower profitability.
Previous wording
Consolidated operating profit decreased by $104.8 million, or 20.3%, for the nine months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.3 million for the nine months ended September 30, 2024, as compared to the same period in 2023.
Current wording
Contract-Manufactured Products -Contract-Manufactured Products gross profit decreased by $1.4 million, or 6.1%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $0.3 million. Contract-Manufactured Products gross profit margin decreased by 0.9 margin points for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to plant spend for additional manufacturing capacity to support the GLP-1 business, offset by increased sales prices.
Previous wording
Consolidated R&D costs decreased by $0.9 million, or 5.5%, for thethree months ended September 30, 2024, as compared to the same period in 2023. Consolidated R&D costs increased $0.6 million, or 1.2%, for the nine months ended September 30, 2024 as compared to the same period of 2023. Efforts remain focused on the continued investment in elastomeric packaging components, formulation development, drug containment systems, self-injection systems and drug administration consumable.
Current wording
Consolidated R&D costs decreased by $1.3 million, or 7.4%, for thethree months ended March 31, 2025, as compared to the same period in 2024, due primarily to reduced salary and wages and a decrease in professional services. Efforts remain focused on the continued investment in elastomeric packaging components, formulation development, drug containment systems, self-injection systems and drug administration consumable.
Previous wording
All of the R&D costs incurred in thethree and nine months ended September 30, 2024 and 2023 related to Proprietary Products.
Current wording
All of the R&D costs incurred in thethree months ended March 31, 2025 and 2024 related to Proprietary Products.
Previous wording
Consolidated SG&A costs decreased by $10.2 million, or 3.9%, for the nine months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of$0.2 million, due primarily to a decrease in expense related to stock-based compensation and lower annual incentive compensation, offset by increased salary and wages.
Current wording
Consolidated SG&A costs increased by $1.3 million, or 1.5%, for the three months ended March 31, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $0.9 million, due primarily to increased salary and wages, offset by decreases in expense related to stock-based compensation and professional services.
Previous wording
Proprietary Products -Proprietary Products SG&A costs decreased by$4.8 million, or 7.8%, for the three months ended September 30, 2024, as compared to the same period in 2023. Proprietary Products SG&A costs decreased primarily dueto lower annual incentive compensation and decreased costs related to professional services.
Current wording
Proprietary Products -Proprietary Products SG&A costs decreased by$0.4 million, or 0.7%, for the three months ended March 31, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $0.8 million. Proprietary Products SG&A costs decreased primarily dueto decreased costs related to professional services, offset by increased salary and wages.
Previous wording
Contract-Manufactured Products -Contract-Manufactured Products SG&A costs increased by$0.7 million, or 11.7%, for the three months ended September 30, 2024, as compared to the same period in 2023, and increased by $1.0 million, or 5.5%, for the nine months ended September 30, 2024, as compared to the same period in 2023, due primarily toincreased salary and wages.
Current wording
Contract-Manufactured Products -Contract-Manufactured Products SG&A costs increased by$1.4 million, or 22.6%, for the three months ended March 31, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $0.1 million, due primarily toincreased salary and wages.
Previous wording
Corporate and unallocated items -Corporate SG&A costs decreased by$1.4 million, or 6.5%, for the three months ended September 30, 2024, as compared to the same period in 2023, primarily due to lower annual incentive compensation and a decrease in expense related to stock-based compensation, offset by increased salary and wages.
Current wording
Corporate and unallocated items -Corporate SG&A costs increased by$0.3 million, or 1.5%, for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to expenses in connection with a plan to optimize the legal structure of the Company and its subsidiaries, offset by a decrease in expense related to stock-based compensation.
Previous wording
Other expense and income items consist of a loss on disposal of plant, asset impairments, foreign exchange transaction gains and losses, contingent consideration and miscellaneous income and charges.
Current wording
Other expense and income items consist of restructuring and related charges, foreign exchange transaction gains and losses, contingent consideration, asset impairments and miscellaneous income and charges.
Previous wording
Consolidated other expense (income) changed by $1.2 million for the three months ended September 30, 2024, as compared to the same period in 2023 and changed by $11.7 million for the nine months ended September 30, 2024, as compared to the same period in 2023, due to the factors described below.
Current wording
Consolidated other expense (income) changed by $17.5 million for the three months ended March 31, 2025, as compared to the same period in 2024, due to the factors described below.
Previous wording
Proprietary Products - Proprietary Products other expense (income) changed by $3.4 million for the three months ended September 30, 2024, as compared to the same period in 2023, primarily due to increased losses on foreign exchange transactions, increased asset impairments and increased contingent consideration expense being recorded in thethree months ended September 30, 2024, as compared to the same period in 2023.
Current wording
Proprietary Products - Proprietary Products other expense (income) changed by $0.5 million for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to increased contingent consideration expense being recorded in the three months ended March 31, 2025, as compared to the same period in 2024.
Previous wording
Contract-Manufa ctured Products -Contract-Manufactured Products other expense (income) changed by $0.6 million for thethree months ended September 30, 2024, as compared to the same period in 2023 and remained consistent for thenine months ended September 30, 2024, as compared to the same period in 2023.
Current wording
Contract-Manufa ctured Products -Contract-Manufactured Products other expense (income) changed by $0.8 million for thethree months ended March 31, 2025, as compared to the same period in 2024, primarily due to increased foreign exchange losses in the three months ended March 31, 2025, as compared to the same period in 2024.
Previous wording
Corporate and unallocated items -Corporate and unallocated items changed by $5.2 million for thethree months ended September 30, 2024, as compared to the same period in 2023, primarily due to the Company recording expense related to impairment of one of the Company's cost investments of $3.3 million in the three months ended September 30, 2023 that did not occur in the same period in 2024. Additionally, the Company recorded a benefit of $2.5 million related to revised severance estimates in connection with the Company's 2022 restructuring plan in thethree months ended September 30, 2024 that did not occur in the same period in 2023.
Current wording
Corporate and unallocated items -Corporate and unallocated items changed by $16.2 million for thethree months ended March 31, 2025, as compared to the same period in 2024, primarily due to the Company recording restructuring and other charges of $16.4 million in the three months ended March 31, 2025 that did not occur in the same period in 2024.
Previous wording
Proprietary Products -Proprietary Products operating profit decreased by $23.4 million, or 12.9%, for the three months ended September 30, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of$0.8 million, due to the factors described above, most notably lower gross profit driven by lower sales volume and an unfavorable mix of products sold.
Current wording
Consolidated operating profit decreased by $15.8 million, or 12.9%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $2.6 million for the three months ended March 31, 2025, as compared to the same period in 2024.
Previous wording
Corporate and unallocated -Excluding the unallocated items, Corporate costs decreased by $2.4 million, or 11.0%, for the three months ended September 30, 2024, as comparedto the same period in 2023, due to the factors described above, most notably the lower annual incentive compensation and the decrease in expense related to stock-based compensation.
Current wording
Corporate and unallocated -Excluding the unallocated items, Corporate costs decreased by $1.3 million, or 6.4%, for the three months ended March 31, 2025, as comparedto the same period in 2024, due to the factors described above, most notably the decrease in expense related to stock-based compensation.
Previous wording
For unallocated items, please refer to the Financial Performance Summary section above for detail.
Current wording
For unallocated items, please refer to the Financial Performance Summary section above for details.
Previous wording
Interest expense, net, decreased by $2.2 million, for the three months ended September 30, 2024, as compared to the same period in 2023, and decreased by $4.0 million, for the nine months ended September 30, 2024, as compared to the same period in 2023, due to an increase in capitalized interest.
Current wording
Interest expense, net, decreased by $1.2 million, for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to an increase in capitalized interest.
Previous wording
Interest income decreased by $4.2 million for the three months ended September 30, 2024, as compared to the same period in 2023, and decreased by $3.8 million for the nine months ended September 30, 2024, as compared to the same period in 2023, due primarily to the Company having a lower average cash balance during 2024, as compared to the same periods in 2023.
Current wording
Interest income decreased by $2.1 million for the three months ended March 31, 2025, as compared to the same period in 2024, due to the Company having a lower average cash balance during 2025 and a decline in interest rates in 2025, as compared to the same period in 2024.
Previous wording
The provision for income taxes was $32.4 million and $29.4 million for the three months ended September 30, 2024 and 2023, respectively, and the effective tax rate was 19.7% and 15.7%, respectively. The increase in the effective tax rate is primarily due to a decrease in the tax benefit related to stock-based compensation in the three months ended September 30, 2024 as compared to the same period in 2023, partially offset by a shift in the forecasted geographic earnings mix.
Current wording
The provision for income taxes was $24.1 million and $16.4 million for the three months ended March 31, 2025 and 2024, respectively, and the effective tax rate was 21.8% and 12.9%, respectively. The increase in the effective tax rate is primarily due to a decrease in the tax benefit related to stock-based compensation in the three months ended March 31, 2025 as compared to the same period in 2024.
Previous wording
Equity in net income of affiliated companies decreased by $1.7 million for the nine months ended September 30, 2024, as compared to the same period in 2023, due to less favorable operating results at Daikyo.
Current wording
Equity in net income of affiliated companies was $3.4 million and $4.3 million for the three months ended March 31, 2025 and 2024, respectively. Equity in net income of affiliated companies decreased by $0.9 million for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to less favorable operating results at Daikyo.
Previous wording
The following table presents cash flow data for the nine months ended September 30:
Current wording
The following table presents cash flow data for the three months ended March 31:
Previous wording
Net Cash Provided by Operating Activities – Net cash provided by operating activities decreased by $74.1 million for the nine months ended September 30, 2024, as compared to the same period in 2023, primarily due to a decline in operating results, offset by favorable working capital management.
Current wording
Net Cash Provided by Operating Activities – Net cash provided by operating activities increased by $11.2 million for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to favorable working capital management, offset by less favorable operating results.
Previous wording
Net Cash Used in Investing Activities – Net cash used in investing activities increased by $14.0 million for the nine months ended September 30, 2024, as compared to the same period in 2023, due to an increase in capital expenditures for additional manufacturing capacity to meet future customer demand.
Current wording
Net Cash Used in Investing Activities – Net cash used in investing activities decreased by $19.3 million for the three months ended March 31, 2025, as compared to the same period in 2024, due to a decrease in capital expenditures.
Previous wording
Net Cash Used in Financing Activities – Net cash used in financing activities increased by $283.6 million for the nine months ended September 30, 2024, as compared to the same period in 2023, primarily due to an increase in purchases under our share repurchase program in 2024, as compared to 2023.
Current wording
Net Cash Used in Financing Activities – Net cash used in financing activities decreased by $124.0 million for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to a decrease in purchases under our share repurchase programs.
Previous wording
Cash and cash equivalents – Our cash and cash equivalents balance at September 30, 2024 consisted of cash held in depository accounts with banks around the world and cash invested in high-quality, short-term investments. The cash and cash equivalents balance at September 30, 2024 included $80.3 million of cash held by subsidiaries within the U.S., and $410.6 million of cash held by subsidiaries outside of the U.S. During the nine months ended September 30, 2024, we purchased 1,409,786 shares of our common stock under the share repurchase program at a cost of $506.5 million, or an average price of $359.24 per share.
Current wording
Cash and cash equivalents – Our cash and cash equivalents balance at March 31, 2025 consisted of cash held in depository accounts with banks around the world and cash invested in high-quality, short-term investments. The cash and cash equivalents balance at March 31, 2025 included $44.6 million of cash held by subsidiaries within the U.S., and $359.6 million of cash held by subsidiaries outside of the U.S. During the three months ended March 31, 2025, we purchased 550,281 shares of our common stock under the share repurchase program at a cost of $133.5 million, or an average price of $242.63 per share.
Previous wording
Working capital – Working capital at September 30, 2024 decreased by $230.5 million, or 18.2%, as compared to December 31, 2023, which includes a favorable foreign currency translation impact of$6.2 million. Excluding the impact of currency exchange rates, cash and cash equivalents, total current liabilities and inventories decreased by$365.0 million,$158.0 million and $34.0 million, respectively, while accounts receivable increased by$12.5 million.
Current wording
Working capital – Working capital at March 31, 2025 decreased by $56.9 million, or 5.8%, as compared to December 31, 2024, which includes a favorable foreign currency translation impact of$15.3 million. Excluding the impact of currency exchange rates, cash and cash equivalents, total current liabilities and accounts receivable decreased by$89.1 million,$35.2 million and $17.6 million, respectively.
Previous wording
Thedecrease in cash and cash equivalents was due to capital expenditures and share repurchases, offset by cash from operations during thenine months ended September 30, 2024. The decrease in total current liabilities was primarily due to the Company amending its Credit Facility Agreement during thenine months ended September 30, 2024. As part of this amendment, all current notes payable and debt amounts were repaid. Please refer to Note 8, Debt, for further discussion. Additionally, a decline in accounts payable and the payout of the 2023 annual incentive plan accrual during thenine months ended September 30, 2024 contributed to thedecrease in total current liabilities.
Current wording
Thedecrease in cash and cash equivalents was due to share repurchases and capital expenditures, offset by cash from operations during thethree months ended March 31, 2025. The decrease in total current liabilities was primarily driven by reductions in accounts payable and income taxes payable, as well as the payout of the 2024 annual incentive plan accrual during the three months ended March 31, 2025 . The decrease in accounts receivable is primarily due to decreased net sales leading up to the March 31, 2025 balance sheet date as compared to the December 31, 2024 balance sheet date.
Previous wording
Our sources of liquidity include our multi-currency revolving credit facility. At September 30, 2024, we had no outstanding borrowings under the multi-currency revolving credit facility. At September 30, 2024, the borrowing capacity available under the multi-currency revolving credit facility, including outstanding letters of credit of $2.4 million, was $497.6 million. We do not expect any significant limitations on our ability to access this source of funds.
Current wording
Our sources of liquidity include our multi-currency revolving credit facility. At March 31, 2025, we had no outstanding borrowings under the multi-currency revolving credit facility. At March 31, 2025, the borrowing capacity available under the multi-currency revolving credit facility, including outstanding letters of credit of $2.3 million, was $497.7 million. We do not expect any significant limitations on our ability to access this source of funds.
Previous wording
There were no new accounting standards adopted during the three months ended September 30, 2024, see Note 2, New Accounting Standards.
Current wording
For information on new accounting standards see Note 2, New Accounting Standards.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The following table presents net sales, consolidated and by reportable segment, for the nine months ended September 30, 2024 and 2023:
Previous report — wording carried elsewhere
The provision for income taxes was $70.7 million and $87.8 million for the nine months ended September 30, 2024 and 2023, respectively, and the effective tax rate was 16.8% and 16.6%, respectively. The increase in the effective tax rate is primarily due to a decrease in the tax benefit related to stock-based compensation in the nine months ended September 30, 2024, as compared to the same period in 2023, partially offset by a shift in the forecasted geographic earnings mix.
Previous report — wording carried elsewhere
The decrease in inventories and theincrease in accounts receivable were both due to increased net sales leading up to the September 30, 2024 balance sheet date as compared to the December 31, 2023 balance sheet date.