Trinseo Q1 Report 2024
Trinseo, a specialty material solutions provider, reported its first quarter 2024 financial results. Sales volumes excluding styrene-related sales were the highest since the third quarter of 2022 and the first year-over-year increase since the first quarter of 2022. Net sales in the first quarter decreased 9% versus the prior year. Lower prices, from the pass-through of lower raw material costs and pressure from weak polystyrene and ABS market conditions, led to a 7% decrease, while lower sales volumes, primarily from lower styrene-related sales following the closure of the Terneuzen, the Netherlands styrene facility, led to a 3% decrease.
Highlights
- Net loss of $76 million and EPS of negative $2.14
- Adjusted EBITDA* of $45 million, including a $13 million favorable impact from net timing; Adjusted Net Loss* of $69 million
- Cash used in operations of $66 million and capital expenditures of $16 million resulted in Free Cash Flow* of negative $82 million. First quarter Free Cash Flow* included a $61 million increase in trade working capital driven by seasonal factors and a more than 50% increase in styrene monomer prices
- First quarter ending cash of $171 million, of which $5 million was restricted, with approximately $252 million of additional available liquidity under two undrawn, committed financing facilities with continued focus on cash management and liquidity
- Extended the maturity date of the Accounts Receivable Securitization Facility by one year to November 2025, and expanded available borrowing capacity by $36 million quarter-over-quarter
- Announced commencement of the sale process for the Company’s interest in Americas Styrenics, via the initiation of an ownership exit provision in the joint venture agreement, which is expected to lead to a definitive agreement in early 2025
- Announced the potential closure of the virgin polycarbonate production site in Stade, Germany which, if approved, is expected to increase annual profitability by $15 million to $20 million compared to 2023
