Berwyn, Pennsylvania – 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 30 June fell 11% year-on-year to $155 million, the group’s quarterly report, issued 2 Aug, shows.
“Higher SSBR and ESBR sales volumes as well as favourable currency impacts were more than offset by the pass through of lower butadiene cost,” it 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 “favourable 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, Trinseo president and CEO Chris Pappas 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.”