tiprankstipranks
Trinseo sees Q4 net loss from continuing operations ($367M)-($362M)
The Fly

Trinseo sees Q4 net loss from continuing operations ($367M)-($362M)

Sees Q4 adjusted EBITDA $4M-$9M. Net loss includes a pre-tax, non-cash goodwill impairment charge of $297M related to the PMMA business and Aristech Surfaces reporting units. CEO Frank Bozich said, "Our Q4 results reflect a challenging operating environment including a continuation of customer destocking, lower underlying demand, and volume and margin impacts from lower-cost imports into Europe from Asia. As a result, our earnings and cash generation were below our previous expectations. However, due to proactive operating decisions such as idling styrene production throughout Q4, we saw a considerable sequential Adjusted EBITDA improvement of more than $40M. Further improvement in Q1 is expected given seasonally stronger demand, lower energy prices and the realization of our asset restructuring initiatives. Despite the near-term challenges, we remain very optimistic about these businesses. Sales volume has been impacted by weak underlying demand and continued customer destocking. In addition, both volume and margins were pressured as elevated natural gas prices in Europe and low demand in China created an arbitrage window for lower-cost commodity products from Asia to be more heavily imported into Europe and North America. We view both of these as temporary circumstances which we believe will resolve themselves in the coming quarters."

Published first on TheFly

See today’s best-performing stocks on TipRanks >>

Read More on TSE:

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles