Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
    • 2022 Women Breaking the Mold
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Financial
February 10, 2021 01:46 PM

Trinseo looks to recover from sales losses of 2020

Frank Esposito
Plastics News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Bozich

    BERWYN, Pa.—Materials firm Trinseo reported lower sales overall and in its plastics-related businesses in 2020.

    Trinseo's total sales were down almost 20 percent for the year to just over $3 billion, as profit plunged more than 90 percent to $8 million.

    Sales for the firm's synthetic rubber unit, which is being considered for a sale, were down 28 percent to $319 million, with Base Plastics unit sales—including ABS and polycarbonate resins, as well as compounds and blends for automotive and other applications—down almost 21 percent to $918 million.

    Unit sales in Polystyrene and Engineered Materials saw less steep declines for the year. Polystryene sales, not counting Trinseo's Americas Styrenics joint venture with Chevron Phillips Chemical Co., were down almost 14 percent to $698 million. Engineered Materials sales, including compounds and blends sold consumer electronics and medical uses, as well as thermoplastic elastomers sold into applications including footwear and automotive, slid 7 percent to $194 million.

    In a news release, President and CEO Frank Bozich credited his team with performing well during the COVID-19 pandemic, and said Trinseo's performance improved as 2020 went on.

    Trinseo closed the year with a major acquisition as it bought the polymethyl methacrylate (PMMA or acrylic) business of Arkema S.A. for almost $1.4 billion. The deal includes the Plexiglas brand in the Americas, a product that has been in the news as demand surged in 2020 from fabricators making clear shielding to prevent the spread of COVID-19.

    "During the peak of the COVID-19 pandemic in the second quarter we were able to meet all customer demand and we undertook cost and capital expenditure reduction initiatives to maximize liquidity," Bozich said. He added that demand recovery in end markets like appliances and automotive in the second half of the year resulted in "robust earnings" in the third and fourth quarters.

    Trinseo's fourth-quarter adjusted EBITDA was its highest in more than two years. Looking ahead to 2021, Bozich said that, despite the continued economic impact risk of COVID-19, Trinseo expects "significant earnings improvement" in 2021.

    "We are starting the year with a very strong balance sheet on the heels of a solid quarter of earnings with the expectation of continued strong demand in the first quarter, particularly in tires, automotive and appliances," he added.

    "We will continue to act on our strategy of growing the business in areas with higher margins and less cyclicality by investing in Engineered Materials and CASE applications, including the acquisition of Arkema's MMA/PMMA business."

    Trinseo's per-share stock performance during 2020 tells a different story than its sales results would indicate. It began the year near $29 but fell near $17 in mid-March amid global pandemic concerns. It has since recovered in a major way and was above $57 in late trading Feb. 8, got its highest level since late 2018.

    Trinseo employs about 2,600 at 32 manufacturing sites worldwide. In addition to plastics, the firm is a major producer of latex binders.

    Related Article
    Trinseo cautiously optimistic about market recovery
    Trinseo expands elastomers facility in Italy
    Trinseo buying Arkema's acrylics business for $1.36 billion
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Wacky World of Rubber: The true story behind the rubber match
    2
    Continental to build $40 million hose plant in Mexico
    3
    Goodyear targeting full petroleum oil replacement by 2040
    4
    Rubber process oil suppliers face push of demand, pull of continued logistical issues
    5
    Michelin growth strategy looks at tires and beyond
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
        • 2022 Women Breaking the Mold
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION