BERWYN, Pa.—Positive 2017 results are leading executives with materials maker Trinseo S.A. to increase guidance for 2018.
Berwyn-based Trinseo saw its 2017 sales jump almost 20 percent to more than $4.4 billion, as annual profit grew 3 percent to $328 million. The firm now anticipates full-year 2018 profit of between $369 million and $386 million and adjusted earnings per share of $8.26 to $8.63, officials said in a Feb. 19 news release.
President and CEO Chris Pappas said in the release that Trinseo was increasing guidance because of strong business fundamentals and because it expects a favorable impact from unplanned styrene outages in the first quarter. The firm also expects continued strong cash generation during 2018, he added.
Net sales of latex binders were up in the fourth quarter and full year ended Dec. 31. The full year net sales reached $1.09 billion in 2017, while fourth quarter net sales increased by 4 percent to $250 million, when compared to the same period in the year prior.
Trinseo attributed the fourth quarter gain in part to the pass through of higher raw materials costs. Meanwhile, lower sales volumes in the quarter decreased revenue by 11 percent, Trinseo said, excluding the divested Latin America Business, and was driven primarily by lowers sales volumes through North America and Europe as demand in the paper in paper and carpet markets droppped.