Trinseo reported an adjusted net income of $80 million for the third quarter of 2021, increasing from $43 million in the same quarter in 2020. Quarterly adjusted EBITDA came in at $173 million, compared to $101 million a year earlier. Meanwhile, net sales rose to $1.27 billion from $679 million over the same period. The company generated a cash flow from operations of $208 million in the third quarter, with capital expenditure totalling $36 million. This resulted in a free cash flow of $173 million, including $30 million in a working capital source.
CEO Frank Bozich said the third-quarter earnings were solid despite challenges, such as supply chain and energy constraints. The company expects adjusted EBITDA to amount to $750 million to $800 million this year. Full-year operating cash flow is expected at $420 million to $445 million, while free cash flow is pegged at $300 million to $325 million.
Trinseo also announces that it plans to launch a formal sale for its styrenics businesses by the first quarter of 2021. The sale will include the company’s Feedstocks and Polystyrene segments as well as its 50% stake in Americas Styrenics business. Bozich said the divestiture would allow Trinseo to focus more on specialty materials and sustainable solutions.
