Trinseo, a specialty material solutions provider, reported its first quarter 2024 financial results.

Sales volumes excluding styrene-related sales were the highest since the third quarter of 2022 and the first year-over-year increase since the first quarter of 2022. Net sales in the first quarter decreased 9% versus prior year.

Lower price, from the pass-through of lower raw material costs and pressure from weak polystyrene and ABS market conditions, led to a 7% decrease, while lower sales volumes, primarily from lower styrene-related sales following the closure of the Terneuzen, the Netherlands styrene facility, led to a 3% decrease.

First quarter net loss of US$ 76 million was US$ 27 million below prior year, reflecting higher interest and income tax expenses. Adjusted EBITDA of US$ 45 million was US$ 9 million above prior year.

Higher margins in the current year and fixed cost under absorption in the prior year, both primarily in Engineered Materials, were partially offset by lower equity affiliate income due to the planned turnaround at Americas Styrenics. First quarter results included a favorable impact of US$ 13 million from net timing.

Commenting on the company’s first quarter performance, Frank Bozich, President and Chief Executive Officer of Trinseo, said, “We were encouraged with how the first quarter progressed, as results improved steadily throughout the quarter. We believe destocking in some of our value chains has ended, as market tightness resulted in significant margin expansion in Engineered Materials and Americas Styrenics in March, and we see this continuing into the second quarter. While the first quarter working capital increase was expected, it was higher than what we’d attribute to seasonality due to significantly higher styrene costs. We believe this will reverse itself and release working capital in the third quarter.”