Trinseo Plc · Q2 2020 earnings

Briefing

Trinseo's second quarter performance was impacted by COVID-19, resulting in lower sales volume and unfavorable net timing, but the company achieved strong cash generation and liquidity through cost management and working capital control.

Trinseo reported a net loss of $128 million, with diluted EPS of ($3.36). Adjusted EBITDA was negative $8 million, impacted by net timing and COVID-19. The company focused on liquidity, generating $82 million in cash from operations and $58 million in free cash flow, with a quarter-ending cash balance of $582 million.

• Net loss of $128 million and diluted EPS of ($3.36), inclusive of a $6 million pre-tax charge related to corporate restructuring costs; Adjusted EPS of ($2.95).
• Adjusted EBITDA of negative $8 million, including a $43 million unfavorable impact from net timing and a $60 million to $65 million unfavorable impact from COVID-19.
• Actions focused on liquidity in response to COVID-19, including reduced capital spending, operating expenses, and working capital, resulted in second quarter cash from operations of $82 million, Free Cash Flow of $58 million.
• Quarter-ending cash and cash equivalents of $582 million, and Liquidity of $953 million.

Headline financials

Revenue & EPS history

Trinseo expects improved demand across many applications served, with momentum continuing into the third quarter. The rate of recovery remains uncertain, but actions have been taken to reduce operating costs and maximize liquidity. Investments will continue in higher growth applications.