Luxfer Holdings PLC (NYSE:LXFR) Q3 2023 Earnings Call Transcript

Andy Butcher: Yes. We are pleased with the progress being made on pricing in Luxfer Gas Cylinders. That’s been a positive this year, and we believe will be for the future, some of the longer-term contracts that we have are rolling off, and that’s giving us opportunity to recover some of those higher costs that we’ve been seeing from some time, so that’s been very helpful for us. In the period, we did see some – early in the period, we saw some productivity shortfalls in one of the facilities that was associated with a shortage of labor and some equipment difficulties, but that’s in the past. Now, September was much stronger. The higher performance has continued into October, and we’re projecting in the notes in the script, a better performance, again, out of Gas Cylinders in Q4, which I believe will carry forward into the new year.

Steve Ferazani: Great. That’s it for me. Thanks, Andy. Thanks Steve.

Andy Butcher: Thank you.

Operator: At this time, I’ll turn the call over to CEO, Andy Butcher for any final remarks.

Andy Butcher: Thank you, Angela. Please turn to Slide 12. Thanks for the questions and dialogue today. While this is a difficult period, I want to remind us that Luxfer continues to offer a strong customer value proposition supported by competitive advantage across diverse niche applications. Our materials engineering expertise, broad array of proprietary technologies, technical know-how and manufacturing expertise deliver innovative and superior solutions to our customers. We are continuing to concentrate the product portfolio in segments that create sustainable long-term value. Currently, we are facing supply chain and macroeconomic challenges that are creating headwinds for our business. To combat these factors, we have and continue to take decisive actions, which are gaining traction, executing initiatives focused on pricing, footprint optimization, cost savings and cash flow management.

But these actions alone are not sufficient. Our expanded annual strategic review process will thoroughly explore a comprehensive range of opportunities to fully unlock and maximize value. We look forward to sharing the results of that strategic review with you and outlining the next steps in our value creation journey. Thank you again for your time today. Operator?

Operator: This concludes Luxfer’s Q3 2023 Earnings Call. A recording of this conference will be available in about two hours. A link to the recording of this webcast will be available on the Luxfer website at www.luxfer.com.