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Dec 31, 2021
Trinseo Q4 2021 Earnings Report
Trinseo's fourth quarter earnings were reported, revealing a mixed performance influenced by strategic acquisitions and external economic factors.
Key Takeaways
Trinseo reported a net income of $1 million and an adjusted EBITDA of $133 million for Q4 2021. The company's results were impacted by higher natural gas prices in Europe and supply chain disruptions, but were supported by stronger margins and pricing actions.
Net sales increased by 69% compared to the prior year, driven by higher prices and the addition of acquired businesses.
Net income from continuing operations was $1 million, a decrease of $65 million year-over-year.
Adjusted EBITDA was $133 million, a slight increase of $3 million compared to the prior year.
Free cash flow was $159 million, including a working capital source of $116 million.
Revenue by Segment
Forward Guidance
Trinseo anticipates first quarter earnings to be similar to the prior year, with full-year 2022 net income from continuing operations expected to be between $294 million and $332 million and Adjusted EBITDA between $700 million and $750 million.
Positive Outlook
- Strong end market demand observed so far.
- Pricing actions already taken.
- Decline in natural gas costs.
- Profitability from recently acquired businesses.
- Synergies from acquired businesses.
Challenges Ahead
- No specific negatives were mentioned but, the company cited a number of factors that might cause differences, including the ability to complete the potential sale of our styrenics businesses; our ability to successfully execute our transformation strategy and business strategy; our ability to integrate acquired businesses; global supply chain volatility and increased costs or disruption in the supply of raw materials; increased energy costs or costs for transportation of our products; the nature of investment opportunities presented to the Company from time to time; and those discussed in our Annual Report on Form 10-K, under Part I, Item 1A —"Risk Factors" and elsewhere in our other reports, filings and furnishings made with the
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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