Trinseo(US:TSE)2024-11-06 22:19Financial Performance - Net sales for Q3 2024 were $868 million, a 1% decrease compared to the prior year, driven by an 8% decrease in sales volumes offset by a 7% increase in prices due to higher raw material costs[3]. - The net loss for Q3 2024 was $87 million, worsening by $49 million from the prior year, primarily due to increased interest, tax, and restructuring expenses[3]. - Adjusted EBITDA for Q3 2024 was $66 million, which is $25 million higher than the previous year, reflecting improved results across most business segments[3]. - Net sales for the three months ended September 30, 2024, were $867.7 million, a decrease of 1.5% from $879.0 million in the same period of 2023[16]. - Gross profit for the three months ended September 30, 2024, was $80.6 million, significantly up from $31.3 million in the prior year, reflecting a gross margin improvement[16]. - Net loss for the nine months ended September 30, 2024, was $230.6 million, compared to a net loss of $436.3 million for the same period in 2023[16]. - Total net sales for the nine months ended September 30, 2024, were $2,691.7 million, down from $2,837.9 million in the prior year[19]. - Adjusted Net Loss for September 2024 was $(57.5) million, compared to $(36.3) million in September 2023, marking a 58% increase in adjusted losses[21]. Cash Flow and Capital Expenditures - Free Cash Flow for Q3 2024 was negative $3 million, showing a sequential improvement of $53 million, aided by a $16 million decrease in trade working capital[1]. - Cash provided by operating activities for the nine months ended September 30, 2024, was $(99.3) million, a decline from $131.2 million in the same period of 2023[18]. - Free Cash Flow for the three months ended September 2024 was $(3.4) million, a decrease from $15.8 million in the same period of 2023[25]. - Capital expenditures for the three months ended September 2024 were $(12.2) million, slightly down from $(13.5) million in the same period of 2023[25]. Segment Performance - Engineered Materials segment reported net sales of $207 million, a 12% increase year-over-year, driven by higher sales volumes and prices[4]. - Latex Binders segment net sales were $242 million, an 8% increase, with a 12% impact from higher prices offsetting a 4% decrease in volumes[4]. - Polystyrene segment net sales decreased by 28% to $151 million, primarily due to a 35% drop in sales volume[4]. - Americas Styrenics Adjusted EBITDA was $4 million, down $15 million from the prior year due to unplanned outages and lower styrene margins[4]. Future Projections - The company expects a net loss of between $81 million and $71 million for Q4 2024, with Adjusted EBITDA projected to be between $40 million and $50 million[5]. - Forecasted Adjusted EBITDA for the three months ending December 31, 2024, is projected to be between $40 million and $50 million[23]. Restructuring and Cost Savings - Restructuring initiatives are anticipated to yield cost savings of $25 million in 2025 and full run rate savings of $30 million by the end of 2026[1]. Balance Sheet and Liabilities - Total assets decreased to $2,882.8 million as of September 30, 2024, down from $3,029.2 million at the end of 2023[17]. - Current liabilities increased to $814.2 million as of September 30, 2024, compared to $672.6 million at the end of 2023[17]. - The company experienced a significant increase in inventories, rising to $434.8 million as of September 30, 2024, from $404.7 million at the end of 2023[17]. Interest and Expenses - Interest expense for the three months ended September 30, 2024, was $72.3 million, compared to $46.6 million in the same period of 2023, indicating increased borrowing costs[16]. - Interest expense, net for September 2024 increased to $72.3 million from $46.6 million in September 2023, reflecting a 55% rise[21]. - Depreciation and amortization for September 2024 was $48.3 million, compared to $38.2 million in September 2023, reflecting a 26% increase[21].