MOSCOW (MRC) -- Trinseo (Wayne, Pennsylvania) has reported a first-quarter loss of USD49 million, down from profit of USD17 million in the year-ago quarter on lower volumes and margins, said the company.
Sales totaled USD996 million, down 28% year over year (YOY) from USD1.387 billion on continued customer destocking and demand weakness, the company said. Adjusted earnings per share came to a loss of USD1.01, down from profit of USD2.08 in the year-ago quarter and short of analysts’ consensus estimate of a USD0.62 loss as compiled by S&P Global Market Intelligence.
Adjusted EBITDA totaled USD36 million, up 112% YOY from USD17 million. Volumes declined in all segments, compared to the year-ago quarter, while margins were hit by a USD34 million net timing variance and unfavorable impacts of USD19 million from natural gas hedging and USD10 million from manufacturing cost under-absorption.
“We anticipate performance will significantly improve in the second quarter from lower raw material and corporate costs, better fixed-cost absorption and a lower natural gas hedge loss,” said Bozich. “While we are expecting a gradual demand increase through the end of the year, the range of our full-year outlook reflects no sales volume improvement at the low end and a 10% improvement at the high end.”
For the second quarter, the company expects a net loss from continuing operations of approximately USD15 million and adjusted EBITDA of approximately USD80 million.
We remind, Trinseo has added a new grade to its Magnum ABS family. Complementing the bio formulations of the material made with 60 and 80 percent bio-attributed content made available in late 2022, the company has now launched a version with 95 percent mass-balanced renewably sourced content.