MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex and rubber, today reported its third quarter of 2014 financial results with revenue of USD1,3 million and adjusted EBITDA of USD62 million, said the producer in its press release.
Revenue in the third quarter was roughly flat to prior year as higher SSBR volume and a favorable foreign exchange impact were offset by lower price which was primarily driven by the pass through of lower raw material cost. Sequentially, revenue decreased by 3% due to lower sales volume, with seasonality and weaker economic conditions in Europe, as well as an unfavorable currency impact as the U.S. dollar strengthened compared to the euro.
Adjusted EBITDA for the quarter decreased USD10 million, or 14%, versus the prior year. This decrease was driven by lower styrene monomer production margin and lower equity affiliate income which were partially offset by favorable raw material purchase timing as well as higher SSBR sales volume. In addition, prior year results included a USD12 million foreign exchange loss compared to a USD2 million gain in the current year. Sequentially, Adjusted EBITDA decreased USD18 million, or 22%, due to the turnaround at our Schkopau, Germany Rubber plant, lower styrene and polystyrene margins, higher bisphenol-A cost in Polycarbonate, and seasonality in Europe.
Styrenics revenue of USD561 million for the quarter was 3% below the prior year due mostly to the pass through of lower styrene costs which were partially offset by currency. Adjusted EBITDA of USD22 million was USD45 million below prior year due primarily to lower styrene monomer margins. These margins were well below last year’s which were at their highest level since 2005. Additionally, equity affiliate earnings from Americas Styrenics decreased versus prior year. The polystyrene market was particularly weak during the quarter due to economic conditions, the European summer holiday, and destocking driven by high styrene prices. Styrene monomer margins in Europe were similar to last quarter but were significantly lower in Asia.
Engineered Polymers revenue of USD261 million was 1% higher than the prior year due to currency. Adjusted EBITDA of USD2 million was flat versus prior year as higher volume to the automotive market as well as higher margin in our compounds and blends products were offset by a decrease in equity affiliate earnings from Sumika Styron. The global polycarbonate market continues to rebound with year-to-date growth of about 5% and operating rates approaching 80%. Sales volume to the consumer essential markets was its highest since 2012. Sales volume to the automotive market grew year-over-year in Europe, North America, and Asia.
Formerly known as Styron, Trinseo previously announced plans to change the name of all Styron affiliated companies to Trinseo. Some, but not all, of the Styron companies have completed the name change process and are currently known as Trinseo; Styron companies that have not completed this process will continue to do business as Styron until their respective name changes are complete. Styron’s operating companies also continue to do business as Styron at this time.
Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires.
MRC