Trinseo (TSE) Tops Q1 EPS by 2c, Revenues Miss; Offers FY19 EPS Outlook

Trinseo (NYSE: TSE) reported Q1 EPS of $1.09, $0.02 better than the analyst estimate of $1.07. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $1.12 billion.

Commenting on the Company’s performance, Frank Bozich, Trinseo President and Chief Executive Officer, said, “While improved versus the fourth quarter, our first quarter results were affected by continued weak automotive and tire markets and the weak economic environment in China. Despite this, we delivered very strong cash generation in the first quarter as a result of actions taken to reduce inventory levels.”

Outlook

Commenting on the outlook for 2019, Bozich said, “While we have seen signs of improved demand across some of our markets, the automotive and tire markets remain weak, as do many of the end markets in China into which we sell. Amid these conditions, we have initiated a number of working capital and cost initiatives to improve operating results. We are also evaluating strategic alternatives for our polycarbonate manufacturing facility in Stade, Germany due to significantly declining polycarbonate margins resulting from low demand and new capacity in China. This is the first action from our ongoing strategic review of our business portfolio. We are cautiously optimistic about better economic conditions in the second half of 2019 and we remain focused on cash generation and cost management.”

GUIDANCE:

Trinseo sees FY2019 EPS of $6.00-$7.27, versus the consensus of $6.57.

For earnings history and earnings-related data on Trinseo (TSE) click here.

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