TRINSEO
Strong improvement in 2015 as operating profit reaches USD 394m / Performance materials and basic plastics businesses contribute to gains / Optimistic outlook for 2016
Strong performance in the fourth quarter of 2015 helped styrenics producer Trinseo (Berwyn, Pennsylvania / USA; www.trinseo.com) achieve an operating profit (adjusted EBITDA) of USD 492m (EUR 446m) for the full year, up from USD 262m in 2014. Excluding inventory revaluation, operating profit was USD 550m, compared with USD 326m on the same basis in 2014. Full sales were down 23% year-on-year to USD 3.97 bn.
Full year operating profit in the company’s Performance Plastics segment increased by 20% year-on-year to USD 83.0m on sales down 9% at USD 743m. Fourth quarter operating profit was USD 22.1m, up from USD 16.0m in Q4 2014, due mainly to higher margins from decreasing materials costs. Sales in Q4 were down 10% at USD 181m resulting from the pass through of lower material costs and currency effects.
In the Basic Plastics and Feedstocks segment full year operating profit rose to USD 327m from USD 30.7m in 2014. Sales fell by 26% year-on-year to USD 1.79 bn. Fourth quarter operating profit was USD 74.9m, compared with a loss of USD 11.9m in Q4 2014. Operating profit excluding inventory revaluation also rose, driven by higher styrenic polymer and polycarbonate margins as well as higher equity earnings from the Americas Styrenics business, although this was partially offset by lower styrene monomer margins. Sales in the quarter fell by 22% to USD 387m due to lower raw material costs and currency effects.
Chris Pappas, Trinseo president and CEO, said: “I am very proud of what we accomplished during the year. We delivered record adjusted EBITDA excluding inventory revaluation and record free cash flow. The Basic Plastics and Feedstocks division delivered a record USD 356m of adjusted EBITDA excluding inventory revaluation, and the Performance Materials division continued to deliver steady results, with USD 284m of adjusted EBITDA excluding inventory revaluation. We had record sales volume in Synthetic Rubber and record EBITDA in Performance Plastics.”
Looking forward, Pappas said he expects an overall improvement in first quarter 2016 operating profit (adjusted EBITDA), with gains in both Performance Materials and Basic Plastics and Feedstocks. The company adjusted its full year operating profit expectation to between USD 510m and USD 520m.
Full year operating profit in the company’s Performance Plastics segment increased by 20% year-on-year to USD 83.0m on sales down 9% at USD 743m. Fourth quarter operating profit was USD 22.1m, up from USD 16.0m in Q4 2014, due mainly to higher margins from decreasing materials costs. Sales in Q4 were down 10% at USD 181m resulting from the pass through of lower material costs and currency effects.
In the Basic Plastics and Feedstocks segment full year operating profit rose to USD 327m from USD 30.7m in 2014. Sales fell by 26% year-on-year to USD 1.79 bn. Fourth quarter operating profit was USD 74.9m, compared with a loss of USD 11.9m in Q4 2014. Operating profit excluding inventory revaluation also rose, driven by higher styrenic polymer and polycarbonate margins as well as higher equity earnings from the Americas Styrenics business, although this was partially offset by lower styrene monomer margins. Sales in the quarter fell by 22% to USD 387m due to lower raw material costs and currency effects.
Chris Pappas, Trinseo president and CEO, said: “I am very proud of what we accomplished during the year. We delivered record adjusted EBITDA excluding inventory revaluation and record free cash flow. The Basic Plastics and Feedstocks division delivered a record USD 356m of adjusted EBITDA excluding inventory revaluation, and the Performance Materials division continued to deliver steady results, with USD 284m of adjusted EBITDA excluding inventory revaluation. We had record sales volume in Synthetic Rubber and record EBITDA in Performance Plastics.”
Looking forward, Pappas said he expects an overall improvement in first quarter 2016 operating profit (adjusted EBITDA), with gains in both Performance Materials and Basic Plastics and Feedstocks. The company adjusted its full year operating profit expectation to between USD 510m and USD 520m.
09.03.2016 Plasteurope.com [233549-0]
Published on 09.03.2016
German version of this article...