Berwyn, Pennsylvania - Trinseo’s fourth quarter sales was hit by lower volumes in various segments, including the synthetic rubber and feedstock units, the company announced 13 Feb.
Revenue for the three months to end of December 2018 fell 3% to $1.0 billion (€880 million), also reflecting currency impact.
Fourth quarter adjusted EBITDA (earnings) fell 61% to $65 million, due in part to continued weakness in the automotive and tire markets and the Chinese slowdown.
During the quarter, Trinseo reduced workforce within its synthetic rubber segment, with a $5-million negative impact.
The move is anticipated to result in cost savings of approximately $2 million in 2019 and $3 million annually thereafter.
Synthetic rubber net sales rose 3% year-on-year to $130 million during the quarter, but segment earnings halved to $5 million.
The pass through of higher raw material costs was partially offset by lower SSBR and ESBR sales volume due to weak tire market conditions, Trinseo said.
“We finished 2018 with lower than anticipated profitability due to challenging market dynamics and economic conditions toward the end of the year,” said the outgoing president and CEO Chris Pappas.