MOSCOW (MRC) -- Trinseo (TSE), a global materials company and manufacturer of plastics, latex and synthetic rubber, reported its first quarter 2015 financial results with revenue of USD1,018 million and adjusted EBITDA excluding inventory revaluation of USD151 million, said the producer in its press release.
Net sales for the US-based chemical company were 9.3% lower year on year, but costs of sales dropped 15.6%, more than doubling gross profits to USD103.1m up from USD38.0m.
Revenue in the first quarter decreased 25% versus prior year and 9% versus prior quarter due to the pass through of lower raw material cost, with the significant decline in the overall energy complex, and currency, as the euro weakened in comparison to the U.S. dollar. These impacts were partially offset by an increase in sales volume across all of our segments, which was aided by customer restocking in the current quarter after a period of destocking in the latter part of 2014.
First quarter Adjusted EBITDA of USD109 million included a USD42 million unfavorable impact from inventory revaluation. Adjusted EBITDA excluding inventory revaluation of USD151 million was USD68 million higher than prior year and USD47 million higher than prior quarter. These increases were due mainly to higher margins in polycarbonate, from our restructuring efforts and market improvement, higher margins in Performance Plastics, due to declining raw material costs during the quarter, and improved performance in styrene monomer, styrenic polymers, and at Americas Styrenics driven by first quarter industry restocking and overall stronger market conditions ahead of planned outages.
The other segment sales increases were driven largely for latex by higher sales into the carpet markets in North America and Europe, for synthetic rubber by higher sales of solution styrene butadiene rubber (SSBR) and for performance plastics sales volumes by higher sales into the consumer electronics market in Asia.
Formerly known as Styron, Trinseo has completed the name change process for most legal entities around the world. Some Styron companies are still completing this process and will continue to do business as Styron until their respective name changes are complete.
Trinseo 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 1Q 2015.
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