Trinseo Q1 Report 2023

Trinseo, a specialty material solutions provider, today reported its first quarter 2023 financial results. Net sales in the first quarter decreased 28% versus prior year. Lower sales volume across all reporting segments caused by continued customer destocking and underlying demand weakness led to a 20% decrease. Lower price, from the pass through of lower raw material costs, led to a 7% decrease.

First quarter net loss from continuing operations of $49 million was $66 million below prior year and first quarter Adjusted EBITDA of $36 million was $142 million below prior year. The reduced year-over-year profitability was driven by lower volume across all segments as well as lower margin, including an unfavorable $34 million net timing variance. First quarter results included a $19 million unfavorable impact from natural gas hedging as well as a $10 million impact from manufacturing cost under absorption.

Latex Binders net sales of $248 million for the quarter decreased 19% versus prior year including a 14% impact from lower volumes across all regions and applications. Adjusted EBITDA of $26 million was $4 million below prior year as lower volumes were partially offset by pricing initiatives.

Polystyrene net sales of $209 million for the quarter were 34% below prior year. Lower volume led to a 22% decrease in sales and lower price, primarily from the pass through of lower styrene costs, led to a 10% decrease in sales. Adjusted EBITDA of $16 million was $29 million below prior year as weaker demand in appliance and building & construction applications led to lower volumes and contracted margins.

Feedstocks net sales of $43 million for the quarter were 39% below prior year from a 19% impact from lower volume and a 17% impact from lower price. Adjusted EBITDA of negative $11 million was $15 million below prior year from lower styrene margin, including an unfavorable net timing variance of $7 million. The styrene plant in Terneuzen, the Netherlands was restarted in late January 2023 and the styrene plant in Boehlen, Germany was permanently closed in December 2022.