Trinseo (TSE) Tops Q3 EPS by $101, Revenues Beat

Trinseo (NYSE: TSE) reported Q3 EPS of $2.87, $1.01 better than the analyst estimate of $1.86. Revenue for the quarter came in at $752 million versus the consensus estimate of $708.29 million.

Third Quarter 2020 and Other Highlights

• Net income of $106 million and diluted EPS of $2.75
• Adjusted EBITDA* of $102 million, including a $2 million favorable impact from net timing, and Adjusted EPS* of $2.87
• COVID-19 pre-tax impact of $65 million to $70 million in the first half of the year with an expected second half pre-tax benefit of $10 million to $15 million from restocking volume and margin benefits, resulting in a full-year anticipated pre-tax impact of $55 million
• Improved market conditions and continued actions in response to COVID-19, including reduced capital spending and operating expenses, resulted in third quarter cash from operations of $52 million, Free Cash Flow* of $39 million, and quarter-ending cash and cash equivalents of $503 million

Commenting on the Company’s third quarter performance, Frank Bozich, President and Chief Executive Officer of Trinseo, said, “During the third quarter we observed significant demand recovery in many of our end markets. In addition, tighter market conditions led to higher year-over-year margins for styrene, polystyrene, polycarbonate and ABS. I want to thank our employees for their continued dedication and there’s no doubt that our improved performance is a byproduct of both their hard work and the speed at which our management group was able to adjust.”

Outlook

Commenting on the outlook for the remainder of 2020, Bozich said, “We have seen demand momentum continue in October and we are cautiously optimistic that this will continue through the end of the year. We expect to end the year with a strong balance sheet and liquidity position which will enable us to continue to invest in areas that will provide value to our shareholders including focusing on higher margin, more resilient applications and the exciting opportunities emerging in polystyrene circularity.”

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

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