Skip to main content
Sister Publication Links
  • Rubber & Plastics News
Subscribe
  • My Account
  • LogIn
  • News
  • Technology Focus
    • Features
    • Technical Papers
    • Analysis: Rubber mixing plants of the future
      Analysis: US probes dumping by ESBR suppliers
      Opinion: Tire labels stuck in a rut
      Analysis: NR pricing takes one step forward, two steps back
    • White paper: Role of tire innerliners in improving 'in-use rolling resistance'
      White paper: Why tire air retention matters now more than ever
      Nippon Soda: Use of 1,2-polybutadiene in CSM rubber applications
      Elastomers for Sustainability Top 10
  • Events
    • ERJ Events
    • ERJ Livestreams & Webinars
    • Industry Events
    • Journey to Automation Awards 2020
      Sustainability: Top 10 E4S projects table
  • Maps & Reports
  • People
  • Directory
  • Digital Edition
  • Brainiac
MENU
Breadcrumb
  1. Home
  2. News
November 10, 2020 08:33 AM

Trinseo cautiously optimistic about market recovery

ERJ Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Trinseo’s synthetic rubber production plant in Schkopau, Germany

    Berwyn, Pennsylvania – Trinseo SA has seen continued recovery in the automotive, tire and medical industries during the third quarter of 2020, and is “cautiously optimistic” that the trend will persist in the remaining quarter of the year.

    "The positive demand recovery we observed towards the end of the second quarter seen momentum through the third quarter," said Trinseo president and CEO Frank Bozich in a third quarter earnings call 5 Nov.

    This, he said, led to "significant sequential quarterly volume improvement" in many applications, including tires.

    In the tire segment, according to Bozich, third quarter volume was flat year-on-year at 57 kilotonnes, but significantly higher than 26 kilotonnes reported in the second quarter.  

    “We're cautiously optimistic that this trend will persist for the duration of the quarter,” said Bozich during the earnings call.

    Despite the pick-up in demand, Trinseo’s synthetic rubber segment report a 24% decline in sales to $79 million (€66.7 million) during the third quarter, due mainly to the pass through of lower raw material costs.

    Demand recovery in sales was paced by Asia and North America, Trinseo said in its third quarter results 5 Nov.

    Adjusted earnings (EBITDA) went into negative territory, at -$2 million, nearly $10 million below the third quarter of 2019. 

    Trinseo linked the earnings decline to lower margins from the impact of higher spot sales in emulsion styrene butadiene rubber (ESBR).

    In addition, lower fixed cost absorption from inventory reduction initiatives impacted earnings.

    RECOMMENDED FOR YOU
    Versalis gains sustainability cert for product from bionaphtha and chemical recycling
    Versalis gains sustainability cert for product from bionaphtha and chemical recycling
    Michelin tires will be “100% sustainable” by 2050
    Michelin tires will be “100% sustainable” by 2050
    MouldTex advances mould-texturing for friction-optimised rubber parts
    MouldTex advances mould-texturing for friction-optimised rubber parts
    Free Newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Get the latest news impacting the European rubber industry, from breaking news to razor-sharp analysis, in print and online.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter
    • Youtube

    Logo
    Contact Us

    @ 2019 European Rubber Journal. 
    European Rubber Journal is published bi-monthly by NUERJ Ltd.

    Registered Office: Castle House, 89 High Street,
    Berkhamsted, Hertfordshire HP4 2DF, United Kingdom. 

    Tel. + 44 (0)203 196 0141 

    Registered No. 13104613 England

    Email: [email protected]

    Website www.european-rubber-journal.com

    Customer service 

    Tel. + 44 (0)203 196 0141 

     

    Resources
    • About us
    • Contact Us
    • Advertise with Us
    • Media Kit
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
    • Technology Focus
      • Features
      • Technical Papers
    • Events
      • ERJ Events
      • ERJ Livestreams & Webinars
      • Industry Events
    • Maps & Reports
    • People
    • Directory
    • Digital Edition
    • Brainiac