BERWYN, Pa.—Materials and synthetic rubber supplier Trinseo has posted a strong earning performance in its 2016 full-year results, thanks in part to record sales volume in synthetic rubber.
Net sales in the full year decreased 6 percent when compared to the previou year, primarily due to the pass through of lower raw material costs. Net income, however, rose by $84 million to $318 million. Trinseo attributed this to "improved performance across all segments, including record sales volume in synthetic rubber."
Adjusted earnings (adjusted EBITDA) rose from $492 million to $611 million for the 2016 fiscal year.
"Overall for the year, we had record net income and adjusted EBITDA results, including record performance in both our Performance Materials and Basic Plastics & Feedstocks divisions," explained CEO and president Chris Pappas.
In the fourth quarter, Trinseo's synthetic rubber sales rose 20 percent to $124 million compared to the same period in 2015. This was driven by higher SSBR and ESBR sales volumes as well as the pass-through of higher raw material costs.
Overall, Trinseo said, sales volume was "the highest quarter ever driven by record sales of SSBR."
Fourth quarter adjusted EBITDA, at $29 million, was $8 million above the prior year's level driven by higher SSBR and ESBR sales volumes. For the full year, synthetic rubber sales grew slightly from $474.6 million to $450.7 million. Adjusted EBITDA for the segment rose 19 percent to $111 million.
The company did not provide figures for full year SR activities.