Q2 2024 Trinseo PLC Earnings Call Transcript
Key Points
- Trinseo PLC (TSE) achieved its highest adjusted EBITDA since Q2 2022, despite $10 million of unfavorable net timings.
- The engineered materials segment saw its highest sales volumes and adjusted EBITDA since Q2 2022, driven by moderating input costs and steady demand.
- Trinseo PLC (TSE) issued its 14th annual sustainability and corporate social responsibility report, showing significant progress toward 2030 sustainability goals.
- The company opened a PMMA depolymerization facility in Italy, utilizing a novel recycling process with lower CO2 emissions and high yields.
- Trinseo PLC (TSE) entered into a new accounts receivable securitization facility, extending the maturity date to January 2028, enhancing liquidity preservation.
- Free cash flow remained negative in Q2, with cash used in operations amounting to $42 million.
- The company expects Q4 profitability to be sequentially lower than Q3 due to normal year-end seasonality.
- Trinseo PLC (TSE) anticipates free cash flow for the full year to be negative due to high styrene prices and other factors.
- The Americas styrenics joint venture faces headwinds from lower styrene prices and an unplanned outage.
- The company is navigating a prolonged industry downturn, with liquidity preservation being a top priority.
Good morning, ladies and gentlemen, and welcome to the Trinseo second-quarter 2024 financial results conference call. We welcome the Trinseo management team, Frank Bozich, President and CEO; David Stasse, Executive Vice President and CFO; and Andy Myers, Vice President of Investor Relations.
Today's conference call will include brief remarks by the management team followed by a question-and-answer session. The company distributed its press release along with its presentation slides at close of market Tuesday, August 6. These documents are posted on the company's Investor Relations website and furnished on a Form 8-K filed with the Securities and Exchange Commission.
(Operator Instructions) I will now hand the call over to Andy Myers.
Thank you, Abby, and good morning, everyone. At this time, all participants are in a listen-only mode. After our brief remarks, instructions will follow to participate in the question-and-answer session. Our disclosure rules and cautionary note on forward
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