Trinseo S.A. ( TSE Quick Quote TSE - Free Report) recorded a profit of $72 million or $1.81 per share in first-quarter 2021 against a loss of $36 million or 94 cents a year ago. Barring one-time items, earnings were $3.27 a share, up from 26 cents per share a year ago. The figure topped the Zacks Consensus Estimate of $2.42. Revenues climbed around 28% year over year to $1,092.6 million in the quarter. The top line was driven by higher prices as well as increased sales volume in all segments barring Feedstocks.
Revenues at the Latex Binders segment rose 15% year over year to $251 million in the reported quarter due to the pass through of higher raw material costs and increased sales volumes.
Revenues at the Synthetic Rubber segment went up 22% year over year to $124 million, aided by higher volumes. The company witnessed continued demand recovery in the tire market. The Engineered Materials segment recorded sales $66 million, up 38% year over year, driven by increased sales volume to consumer electronics applications in Asia and TPE applications in Europe. Revenues at the Base Plastics unit went up 28% year over year to $329 million on higher volume in applications like construction, higher pricing and favorable currency swings. Sales at the Polystyrene segment climbed 46% year over year to $267 million, due to the passthrough of higher styrene costs and higher sales volumes on increased demand for applications in appliances and consumer electronics. Feedstocks segment sales rose 25% year over year to $56 million as higher styrene pricing more than offset lower styrene-related sales volume. The Americas Styrenics unit logged adjusted EBITDA of $23 million for the quarter, up around 134% year over year, driven by higher styrene volume and margin in North America. Financials
Trinseo ended the quarter with cash and cash equivalents of $618.4 million, up around 41% year over year. Long-term debt was $1,605.1 million, up around 38% year over year.
The company recorded cash flow from operating activities of $51 million for the reported quarter. Outlook
For 2021, Trinseo sees net income in the range of $303-$343 million. Adjusted EBITDA is forecast in the band of $625-$675 million.
The company expects results for the second quarter to be similar on a sequential comparison basis due to the continuation of similar market trends that include strong demand and margins across many of its segments. Price Performance
Trinseo’s shares have surged 261.1% over a year, outperforming the
industry's rise of 148%.
Zacks Rank & Key Picks
Trinseo currently carries a Zacks Rank #3 (Hold)
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