Trinseo’s revenue falls 21% in Q3
The decrease in revenue was attributed to lower raw material costs stemming from a significant decrease in the energy complex as well as a weakening euro against the US dollar. Revenue from the Performance Plastics segment declined 13% on a yearly basis to $180 million due to weaker raw material costs and currency issues. The segment’s adjusted EBITDA was also down by $4 million year over year to $15 million in the third quarter. Basic Plastics and Feedstocks revenue, meanwhile, dropped 24% year over year to $467 million because for the same reasons. Sales also declined in the third quarter due to a decrease in PS sales in Asia.
Trinseo’s President Chirs Pappas reported that they expect the Performance Materials segment to earn around $70-75 million in adjusted EBITDA per quarter for the remainder of 2015 while he added they expect an adjusted EBITDA of around $55-65 million for the Basic Plastics and Feedstocks segment in the fourth quarter due to lower styrene margins in Europe and expectations of weaker income from Americas Styrenics.
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