Adjusted earnings per share was $1.24 with an effective tax rate of 0.9%, significantly lower than 25.2% in the prior year quarter due to $8 million of 45Q tax credits claimed.
Adjusted EBITDA was $56 million with a margin of 13.6%.
Capital expenditures were $28 million, down $5 million from the prior year, resulting in a negative $7 million free cash flow for the quarter, with expectations to strengthen free cash flow in the second half and target positive full year free cash flow.
Cash flow from operations was $21 million, down $29 million year-over-year, impacted by lower net income, timing of 45Q tax credit cash, and unwinding of prior year ammonium sulfate prebuy cash advances.
Nylon and caprolactam margins modestly increased due to declining benzene costs, but sales volume was down about $5 million year-over-year.
Plant costs and other items were a $7 million headwind, including increased utility costs partly due to higher natural gas prices and timing of planned turnarounds.
Pricing over raw materials was unfavorable by $10 million year-over-year, with margin contraction in acetone due to rising propylene costs and margin pressure in plant nutrients from higher sulfur and natural gas costs.
Sales of $410 million in the quarter decreased approximately 10% versus the prior year, driven primarily by softer demand in key nylon end markets including engineered plastics applications serving the auto sector.
Dafinchi