Trinseo Posts $120 Million Book Loss! Q2 Revenue Rises Without Profit Growth as Restructuring Costs Swallow Earnings Gains

Engineering resins producer Trinseo released its second-quarter financial results on August 6, reporting a net loss of $120 million for the period, compared with a net loss of $106 million in the same period last year. The company said adjusted EBITDA was $81 million, up from $42 million a year earlier, mainly driven by improved margins in its Polymer Solutions and Engineered Materials segments, as well as cost savings from restructuring.

Total sales in the second quarter were US$845 million, up 8% year on year from US$784 million in the same period last year. The increase in sales was driven by the pass-through of higher raw material costs to downstream customers, but the revenue growth was partially offset by lower sales volumes resulting from the shutdown of the methyl methacrylate (MMA) plant in Italy and a production stoppage at the polystyrene plant in Tessenderlo, Belgium, caused by a severe windstorm.

The pre-tax expenses accrued this quarter amounted to US$89 million, mainly related to organizational restructuring, debt restructuring, and asset optimization initiatives.

Frank Bozich, President and Chief Executive Officer, said in the earnings announcement: “Market volatility was severe in the second quarter, compounded by continued geopolitical tensions and weak consumer confidence. Even so, the team remained focused, proactively seizing market opportunities to advance our operating initiatives. We were also encouraged by the progress made in our balance sheet restructuring, and, supported by the court-approved debtor-in-possession financing arrangement, the company has been able to maintain normal ongoing operations.”

Performance by Business Segment

Engineering Materials Section

Latex Adhesive Binder Sector

Polymer Solutions Section

Americas Styrenics