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Trinseo (TSE) to Sell Mexico Manufacturing Site to Plaskolite
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Trinseo plc (TSE - Free Report) recently announced that it has inked an agreement to sell its land, buildings and equipment in Matamoros, Mexico, to Plaskolite. The transaction is expected to be concluded within the next several weeks.
The Matamoros facility is located on nearly 11 acres in Matamoros City in Tamaulipas, Mexico. The sale of Matamoros assets to Plaskolite will allow TSE to continue operating and providing jobs for the Matamoros community.
As part of the company's asset restructuring measures, Trinseo announced the consolidation of some of its PMMA sheet products from the Matamoros plant into its continuous sheet manufacturing facilities in Florence, KY, in December 2022. Plaskolite will not acquire any of Trinseo's sheet business.
Shares of TSE are down 53.3% over the past year compared with a 36.2% decline of its industry.
Image Source: Zacks Investment Research
On its fourth-quarter earnings call, the company stated that it expects net income from continuing operations of $3 million to $33 million for 2023, with Adjusted EBITDA of $375 million to $425 million.
It also noted that the capital spending of roughly $100 million for 2023 indicates a pause in the legacy Enterprise Resource Planning (ERP) upgrade and includes funding for growth and productivity initiatives. The company expects underlying demand to remain challenging in 2023, but is increasingly convinced that destocking will cease early this year. TSE estimates that sales volumes in first-quarter 2023 will be seasonally higher than in the fourth quarter of 2022, with ongoing improvement throughout the year as demand in China improves and energy prices in Europe moderate, limiting large import prospects from Asia.
Better-ranked stocks worth considering in the Industrial Products space include Encore Wire Corporation (WIRE - Free Report) , OI Glass, Inc. (OI - Free Report) , and Illinois Tool Works, Inc. (ITW - Free Report) .
Encore Wire currently carries a Zacks Rank #1 (Strong Buy). Shares of WIRE have gained 54.3% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 146.9% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
OI Glass currently carries a Zacks Rank #2 (Buy). Shares of OI have gained 73.3%% in the past year. OI Glass topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 16.5% on average.
Illinois Tool currently carries a Zacks Rank #2. Shares of ITW have gained 13.9% in the past year. Illinois Tool has projected growth rate of 3.9% for current year. It delivered a trailing four-quarter earnings surprise of 0.9% on average.
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Trinseo (TSE) to Sell Mexico Manufacturing Site to Plaskolite
Trinseo plc (TSE - Free Report) recently announced that it has inked an agreement to sell its land, buildings and equipment in Matamoros, Mexico, to Plaskolite. The transaction is expected to be concluded within the next several weeks.
The Matamoros facility is located on nearly 11 acres in Matamoros City in Tamaulipas, Mexico. The sale of Matamoros assets to Plaskolite will allow TSE to continue operating and providing jobs for the Matamoros community.
As part of the company's asset restructuring measures, Trinseo announced the consolidation of some of its PMMA sheet products from the Matamoros plant into its continuous sheet manufacturing facilities in Florence, KY, in December 2022. Plaskolite will not acquire any of Trinseo's sheet business.
Shares of TSE are down 53.3% over the past year compared with a 36.2% decline of its industry.
Image Source: Zacks Investment Research
On its fourth-quarter earnings call, the company stated that it expects net income from continuing operations of $3 million to $33 million for 2023, with Adjusted EBITDA of $375 million to $425 million.
It also noted that the capital spending of roughly $100 million for 2023 indicates a pause in the legacy Enterprise Resource Planning (ERP) upgrade and includes funding for growth and productivity initiatives. The company expects underlying demand to remain challenging in 2023, but is increasingly convinced that destocking will cease early this year. TSE estimates that sales volumes in first-quarter 2023 will be seasonally higher than in the fourth quarter of 2022, with ongoing improvement throughout the year as demand in China improves and energy prices in Europe moderate, limiting large import prospects from Asia.
Trinseo PLC Price and Consensus
Trinseo PLC price-consensus-chart | Trinseo PLC Quote
Zacks Rank & Key Picks
TSE currently carries Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the Industrial Products space include Encore Wire Corporation (WIRE - Free Report) , OI Glass, Inc. (OI - Free Report) , and Illinois Tool Works, Inc. (ITW - Free Report) .
Encore Wire currently carries a Zacks Rank #1 (Strong Buy). Shares of WIRE have gained 54.3% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 146.9% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
OI Glass currently carries a Zacks Rank #2 (Buy). Shares of OI have gained 73.3%% in the past year. OI Glass topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 16.5% on average.
Illinois Tool currently carries a Zacks Rank #2. Shares of ITW have gained 13.9% in the past year. Illinois Tool has projected growth rate of 3.9% for current year. It delivered a trailing four-quarter earnings surprise of 0.9% on average.