TRINSEO PLC Reports FY2022 Q4 Earnings Results for Period Ending December 31, 2022.

Earnings Overview

On February 8 2023, TRINSEO PLC ($NYSE:TSE) reported its earnings results for FY2022 Q4 ending on December 31 2022, showing a total revenue of USD -365.3 million, a year-over-year decrease of 395.1%, and net income of USD 975.2 million, a decrease of 24.9% compared to the same quarter the previous year.

Transcripts Simplified

Trinseo PLC completed closures and restructuring to reduce costs, reduce exposure to cyclical commodity markets, and improve profitability. The company created key positions like a Chief Commercial Officer, Chief Sustainability Officer and Chief Technology Officer to better execute its strategy and serve customers. It acquired PMMA business and Aristech surfaces to unlock cost synergies and offer new specialty products. It completed ERP implementation for legacy Altra Glass sites and is on schedule to capture $60 million of annual run rate synergies by the end of 2024.

It is also seeing strong results in the growth of its products containing recycled materials, which are in high demand. Lastly, it is making progress on its 2030 sustainability goals, such as reducing carbon emissions, achieving improved gender balance in its workforce and improving EHS performance.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Share Price

The report showed the company’s stock opened at $29.3 and closed at $29.2, which is a decrease of 1.3% from their previous closing price of 29.6. TRINSEO PLC’s CEO, Steve Smith, commented on the results saying, “We are proud of our results this quarter and the progress we have made towards achieving our long-term goals. We remain committed to increasing shareholder value, and these results demonstrate our dedication to doing so.” Overall, TRINSEO PLC has reported another solid quarter of earnings, indicating that the company is well on its way to achieving its long-term financial goals. Despite the 1.3% decrease in stock price, investors remain optimistic about the company’s future prospects and continue to show support for its solid performance. Live Quote…

Analysis

At GoodWhale, we recently conducted an analysis of TRINSEO PLC‘s financials. After our thorough review, we have determined that TRINSEO PLC is a medium risk investment in terms of financial and business aspects. We also detected 1 risk warning in the cashflow statement. If you are interested in seeing what this warning was, then be sure to register on goodwhale.com. Our platform provides detailed insights into the risk associated with investing in TRINSEO PLC. We believe that by using our platform, you can make an informed and well-rounded decision on whether or not to invest in TRINSEO PLC. More…

Peers

In the global market for specialty chemicals, Trinseo PLC competes with several large multinational companies, including Evonik Industries AG, PPG Industries Inc, and Shandong Dongyue Organosilicon Materials Co Ltd. The company has a strong presence in Europe and North America, and is expanding its operations in Asia.

– Evonik Industries AG ($OTCPK:EVKIF)

Evonik Industries AG is a German chemical company with a market cap of 9.4 billion as of 2022. The company’s return on equity is 8.43%. Evonik Industries AG produces a wide range of chemicals and materials, including polymers, performance materials, and health and nutrition products. The company has over 33,000 employees and operates in more than 100 countries.

– PPG Industries Inc ($NYSE:PPG)

PPG Industries, Inc., is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. It was founded in 1883 by John Pitcairn as the Pittsburgh Plate Glass Company. The company produces coatings for automotive, aerospace, construction, and industrial applications. PPG’s headquarters are located in Pittsburgh, Pennsylvania.

– Shandong Dongyue Organosilicon Materials Co Ltd ($SZSE:300821)

Shandong Dongyue Organosilicon Materials Co., Ltd. engages in the research and development, production, and sale of organosilicon products. It operates through the following segments: Organosilicon, Electronic Grade, and Organic Silicon. The Organosilicon segment produces and sells dimethyl disilane, hexamethyldisilane, trimethylsilane, tetramethylsilane, and methylchlorosilane. The Electronic Grade segment produces and sells electronic grade silicon materials. The Organic Silicon segment produces and sells cyclic polydimethylsiloxane, functional fluids, and intermediates. The company was founded on December 28, 2001 and is headquartered in Zibo, China.

Summary

TRINSEP PLC has released their fourth quarter earnings report for FY2022, which showed a drastic year-over-year decrease in total revenue and net income. Total revenue came in at USD -365.3 million, a 395.1% drop from the same quarter last year, while net income was reported at USD 975.2 million, a 24.9% decrease. Considering the decline in total revenue and net income, investors should exercise caution when considering investing in TRINSEP PLC. It may be best to wait until the company can demonstrate positive year-over-year growth figures before investing in the company.