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Jun 30, 2021
Trinseo Q2 2021 Earnings Report
Reported record earnings driven by higher prices, increased volumes, and the acquisition of Arkema's PMMA business.
Key Takeaways
Trinseo reported record second-quarter financial results, with net sales increasing by 138% compared to the prior year. The company's net income from continuing operations was $133 million, and Adjusted EBITDA reached $239 million. The strong performance was attributed to higher prices, increased volumes, and the addition of the Arkema PMMA business.
Net income from continuing operations was $133 million, with diluted EPS from continuing operations at $3.35.
Adjusted EBITDA was $239 million, including a $5 million favorable impact from net timing, and Adjusted EPS was $3.70.
Cash and cash equivalents at quarter-end totaled $367 million, which included the use of nearly $200 million for the Arkema PMMA acquisition.
Entered into an agreement to sell the Synthetic Rubber business to Synthos S.A. for $449 million, expected to close in the first half of 2022.
Revenue by Segment
Forward Guidance
The company provided full-year 2021 guidance, including net income from continuing operations of $344 million to $380 million and Adjusted EBITDA of $750 million to $800 million.
Positive Outlook
- Continued commercial excellence actions
- High demand for most products
- Integration of the newly acquired PMMA business
- On schedule to achieve the targeted first year cost synergies
- Identified additional opportunities from what was originally communicated.
Challenges Ahead
- Earnings to decline from the first half of the year
- No expected contribution from the Feedstocks segment
- Styrene margins in Europe to normalize as supply increases
- Assumes no impact from net timing in the second half of the year
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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