Westlake Corporation experienced a catastrophic financial reversal, swinging from $602M net income to -$1.5B net loss while announcing facility closures in Netherlands and North America.
This represents a massive operational and financial crisis, with the company moving from profitability to severe losses while simultaneously closing key production facilities across multiple regions. The combination of facility shutdowns and dramatic financial deterioration suggests fundamental business model challenges that could permanently impair the company's competitive position and cash generation ability.
Westlake's financial performance collapsed across all key metrics, with net income plummeting 350% from $602M profit to -$1.5B loss and operating income turning deeply negative at -$1.6B. The company's cash generation deteriorated severely with operating cash flow dropping 65% to $465M, while debt increased 22% to $5.6B and stockholders' equity declined 17% to $8.8B. This financial devastation, combined with announced facility closures, signals a company in severe distress with impaired operations and weakened balance sheet capacity to weather the downturn.
Net income declined 350.5% — review whether driven by operations, interest costs, or non-recurring items.
Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.
Operating cash flow fell 64.6% — earnings quality concerns; investigate working capital changes and non-cash items.
Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.
Current liabilities rose 24.8% — increased short-term obligations, watch current ratio.
Debt rose 22.4% — additional borrowing for investment or operations; monitor coverage ratios.
Equity decreased 16.5% — buybacks or losses reducing book value, monitor solvency ratios.
See what changed in your portfolio's filings
500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.
Try Tracenotes free →