CARE Executive Director Bob Peoples reports on Q4 2024 results; see full presentation below.
As we close out 2024, the fourth quarter saw a seasonal decrease in both gross collections and recycled output. The overall 2024 Recycling Rate will be nominally 38% and well ahead of our 34% target for 2024. Full year results are being compiled.
Overall, 2024 markets remained challenging. Demand for both nylon 6 and nylon 6,6 remains surprisingly weak due to a slowing auto sector. New tariffs, the future of which is unclear, could have a very negative impact on the US auto sector, a key outlet market for post-consumer carpet. As noted previously, for the last three quarters carpet pad markets, not covered by the carpet stewardship law, also continue to be severely depressed. Any market improvements, IF they happen, are not expected before the second half of 2025.
Sales in Q4 were 12.3 million square yards, below budget and setting a new low for sales. Overall sales in 2024 are expected to be down versus the Plan budget by an estimated 600,000 square yards. As a reminder, the new sales budget reflected a 32% reduction in sales over the life of the Plan.
Overall, 74% of total expenses were paid out in the form of subsides and 77% of all those subsidies were paid to CA recyclers. Revenue exceeded expenses and the fund balance ended the quarter at $7M, up by $5M (+230%) vs. Q4 2023. However, there is a steep mountain to climb to reach ca. $20M by end 2025.
A full report on the gross collections calculation error (ca. 10%) has been submitted to CalRecycle.
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