MOSCOW (MRC) -- Trinseo (TSE), a global materials company and manufacturer of plastics, latex and rubber, reported its fourth quarter and full year 2014 financial results with revenue of USD1,122 million and USD5,128 million, respectively, and Adjusted EBITDA excluding inventory revaluation of USD104 million and USD326 million, said the company in its press release.
Revenue in the fourth quarter decreased 10% versus prior year driven by the pass through of lower raw material cost as well as currency. Sequentially, revenue decreased 14% due to the pass through of lower raw material cost as well as lower sales volume, particularly in the Styrenics segment, due to weak demand, seasonality, and customer destocking.
Adjusted EBITDA for the quarter decreased USD61 million versus prior year driven by inventory revaluation, as the price of our major raw materials declined significantly during the quarter. Adjusted EBITDA excluding inventory revaluation increased USD23 million versus prior year due to higher styrene monomer margins and higher equity affiliate income. Sequentially, Adjusted EBITDA decreased USD29 million. Adjusted EBITDA excluding inventory revaluation increased USD42 million driven by higher styrene margins, higher margins in our derivative businesses from lower raw material costs, as well as higher equity affiliate income.
Full year revenue decreased 3% versus prior year due primarily to the pass through of lower raw material costs. Adjusted EBITDA for the year decreased USD16 million due to inventory revaluation in the fourth quarter. Adjusted EBITDA excluding inventory revaluation increased USD8 million versus prior year driven by improved performance in the Synthetic Rubber and Engineered Polymers.
Fourth Quarter Results and Commentary by Business Segment
Synthetic Rubber revenue of $137 million decreased 7% versus prior year due to the pass through of lower raw material costs as well as currency. These impacts were partially offset by higher SSBR sales volume which set a record high in the quarter, and was 21% higher than prior year. Adjusted EBITDA of USD30 million was USD12 million below prior year due to inventory revaluation and currency. Excluding the impact of inventory revaluation, performance was similar to the normal run rate and in line with expectations. For the full year, SSBR sales volume was up 28% over 2013, and we continue to invest in new technologies and products to serve the fast-growing performance tire market.
Styrenics revenue of USD452 million decreased 15% versus prior year due mostly to the pass through of lower raw material costs as well as currency. In addition, lower sales volume decreased revenue by about 1% driven by weak demand in Asia as customers continued to destock with the declining styrene prices. Adjusted EBITDA of negative USD4 million was USD56 million below prior year primarily due to the impact of inventory revaluation. Excluding the impact of inventory revaluation, performance was slightly lower than prior year due to customer destocking in polystyrene. Higher styrene production margins during the quarter, as well as higher equity affiliate income, were offset by lower volume and margin in styrenic polymers.
Engineered Polymers revenue of USD247 million decreased 5% due to currency as well as lower sales volume. Lower sales volume to the automotive market in Latin America and to the polycarbonate market in North America, with our exit of that business, were partially offset by higher sales volume to the consumer electronics market in Asia as well as the automotive market in Europe and North America. Adjusted EBITDA of USD8 million was USD6 million above prior year despite negative inventory revaluation impacts. Favorability versus prior year was driven by the exit of the polycarbonate contract manufacturing agreement in Freeport, TX as well as higher sales volume.
As MRC informed previously, Trinseo has reported its third quarter of 2014 financial results with revenue of USD1,3 million and adjusted EBITDA of USD62 million. Revenue in the third quarter was roughly flat to prior year as higher SSBR volume and a favorable foreign exchange impact were offset by lower price which was primarily driven by the pass through of lower raw material cost. Sequentially, revenue decreased by 3% due to lower sales volume, with seasonality and weaker economic conditions in Europe, as well as an unfavorable currency impact as the US dollar strengthened compared to the euro.
Trinseo (TSE) is a global materials company and manufacturer of plastics, latex and rubber. Trinseo’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in the first quarter of 2015.
MRC