BERWYN, Pa.—Trinseo achieved higher profitability at its synthetic rubber business in the second quarter, but sees pressures ahead due to weakening demand for its tire materials.
At Trinseo's synthetic rubber business, net sales for the three months to June 30 fell 11 percent year-on-year to $155 million, according to the group's quarterly report, issued Aug. 2.
"Higher SSBR and ESBR sales volumes as well as favorable currency impacts were more than offset by the pass through of lower butadiene cost," Trinseo explained.
At $31 million, earnings (adjusted EBITDA) at the synthetic rubber unit came in $3 million above the prior-year level, Trinseo also reported.
The higher profits reflected "favorable net timing impacts, partially offset by lower margins across several products, including impacts from higher raw material and utility costs."
Reviewing group-wide prospects for the third quarter and full-year 2018, Chris Pappas, Trinseo president and CEO, said profitability "should be sequentially lower due to seasonality, a lower level of planned styrene outages resulting in decreasing styrene margins, and a somewhat softer tire market demand."