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Trinseo (TSE) Tops Q1 EPS by 82c, Revenues Beat

May 6, 2021 4:17 PM EDT

Trinseo (NYSE: TSE) reported Q1 EPS of $3.27, $0.82 better than the analyst estimate of $2.45. Revenue for the quarter came in at $1.09 billion versus the consensus estimate of $931.13 million.

First Quarter 2021 and Other Highlights

  • Strong net income of $72 million and diluted EPS of $1.81
  • Record quarterly Adjusted EBITDA* of $201 million, including a $7 million favorable impact from net timing, and record quarterly Adjusted EPS* of $3.27
  • First quarter cash from operations of $51 million, Free Cash Flow* of $38 million, and quarter-ending cash and cash equivalents of $618 million
  • Completed acquisition of Arkema’s PMMA business on May 3, marking a major step in Trinseo’s transformation to becoming an advanced specialty and sustainable solutions provider
  • Announced plans to build full commercial scale polystyrene recycling plant in Tessenderlo, Belgium, which is expected to be operational in 2023

Commenting on the Company’s first quarter performance, Frank Bozich, President and Chief Executive Officer of Trinseo, said, “We have started 2021 on a great note with one of the highest quarterly net income results and the highest quarterly Adjusted EBITDA result in Trinseo’s history. Our continued focus on our business excellence program, including our commercial excellence initiatives, the dedication of our team to serve our customers amid numerous industry supply chain challenges, as well as strong market conditions enabled us to deliver these results. We also continue to make structural improvements to our business which are expected to result in higher sustained levels of profitability. I am proud of our dedicated employees who continue to safely and responsibly provide our customers with quality products and solutions despite unique and challenging global events.”

2021 Full-Year Outlook

  • Full-year 2021 net income of $303 million to $343 million and Adjusted EBITDA* of $625 million to $675 million, excluding any impact from the acquisition of Arkema’s PMMA business and the potential divestiture of the Synthetic Rubber segment.
  • Second quarter results are expected to be similar to those from the first quarter due to a continuation of similar market trends, including strong demand and margins across many of our segments.

Commenting on the outlook for the remainder of 2021, Bozich said, “We expect second quarter performance to be similar to the first quarter, especially given the high styrene margins we’ve seen in the beginning of the second quarter, as well as the continued momentum in the remainder of our business. In light of this we have increased our full-year guidance, which reflects a lower but still very strong second half of the year primarily due to more normalized supply conditions.”

Bozich continued, “We are excited to welcome the employees of the PMMA business to the Trinseo family. The close of this transaction at the beginning of this week was an important step in our transformation towards becoming an advanced materials and sustainable solutions provider, and we are highly focused on integrating that business and harmonizing our processes and systems. In addition, we are still on track to conclude our efforts around the exploration of a potential sale of the Synthetic Rubber business by mid-year. Looking forward, we will continue to implement additional steps to grow the company in areas with higher margins and less cyclicality with an ongoing focus on achieving our 2030 sustainability goals.”

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



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