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Mar 31, 2023
Trinseo Q1 2023 Earnings Report
Reported a net loss and lower sales due to reduced volume across all segments and lower margins.
Key Takeaways
Trinseo reported a net loss from continuing operations of $49 million and adjusted EBITDA of $36 million for Q1 2023. Sales decreased by 28% compared to the prior year, driven by lower volume and prices. The company is implementing cash improvement initiatives and restarting the sales process for its Styrenics business.
Net loss from continuing operations was $49 million, with diluted EPS of negative $1.40.
Adjusted EBITDA was $36 million, including unfavorable impacts from natural gas hedges and fixed cost under absorption.
Free Cash Flow was $24 million, driven by a decrease in working capital.
Implemented cash improvement initiatives expected to improve cash generation by over $100 million in 2023.
Revenue by Segment
Forward Guidance
Trinseo anticipates 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. The range of the full-year outlook reflects no sales volume improvement at the low end and a ten percent improvement at the high end.
Positive Outlook
- Performance will significantly improve in the second quarter from lower raw material and Corporate costs
- Better fixed cost absorption
- Lower natural gas hedge loss
- Anticipating a gradual demand increase through the end of the year
- Taking actions to improve our cash and liquidity profile
Challenges Ahead
- Net loss from continuing operations of approximately $15 million for second quarter 2023
- Lower sales volume including extended destocking
- Overall slower market recovery
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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