Notable items in the fourth quarter of fiscal 2020 include: *Net sales of $4.5 billion increased sequentially by 5.6% and decreased by 3.9% compared to the prior year quarter *Packaging volumes increased sequentially 6.9% and 2.4% compared to the prior year quarter *Consumer Packaging reporting unit recorded a non-cash goodwill impairment of $1.3 billion, or $5.06 per diluted share, driven by expected lower volumes and cash flows related to certain external SBS end markets including commercial print, tobacco and plate and cup stock *Loss of $4.45 per diluted share and adjusted earnings per diluted share of $0.73 compared sequentially to $0.69 of earnings per diluted share and $0.76 of adjusted earnings per diluted share *Generated net cash provided by operating activities of $732 million and Adjusted Free Cash Flow of $631 million
Given the current global situation driving rapid escalation of raw material costs along with the sharp rise in crude oil resulting from the U.S. and U.K. governments’ decision to ban the purchase of Russian oil derivatives, Solenis is experiencing unprecedented weekly volatility in our cost to serve our customers. As a result, Solenis will move to monthly pricing on all product lines effective April 1, 2022.
All product lines and market segments are being severely impacted by these world events. We continue to focus our team on mitigating the impact of this situation on our customers’ operations by exhausting every pathway to procure raw materials to support customer demand and avoid run outs. However, these volumes are coming at an extremely high cost which requires our temporary shift to a monthly pricing structure.
We consider this a temporary situation, and we will continue to monitor this volatile situation and will keep lines of communication open to allow de-escalation of monthly pricing as energy pricing and other raw material feedstocks normalize.