Yahoo Finance Trinseo PLC (NYSE:TSE) Q3 2023 Earnings Call Transcript
Trinseo PLC (NYSE:TSE) Q3 2023 Earnings Call Transcript November 6, 2023
Operator: Good morning, ladies and gentlemen, and welcome to the Trinseo Third Quarter 2023 Financial Results Conference Call. We welcome the Trinseo management team, Frank Bozich, President and CEO; David Stasse, Executive Vice President and CFO; and Andy Myers, Director of Investor Relations. Today's conference call will include brief remarks by the management team, followed by a question-and-answer session. The company distributed its press release along with its presentation slides at close of market Friday, November 3. These documents are posted on the company's Investor Relations website and furnished on a Form 8-K filed with the Securities and Exchange Commission. [Operator Instructions]. And now I'll hand things over to Andy Myers. Please go ahead.
Andy Myers: Thank you, Bo, and good morning, everyone. At this time, all participants are in a listen-only mode. After our brief remarks, instructions will follow to participate in a question-and-answer session. Our disclosure rules and cautionary note on forward-looking statements are noted on Slide 2. During this presentation, we may make certain forward-looking statements, including issuing guidance and describing our future expectations. We must caution you that actual results could differ materially from what is discussed, described or implied in these statements. Factors that could cause actual results to differ include, but are not limited to, risk factors set forth in Item 1A of our annual report on Form 10-K or in our other filings made with the Securities and Exchange Commission.
The company undertakes no obligation to update or revise its forward-looking statements. Today's presentation includes certain non-GAAP measurements. A reconciliation of these measurements to corresponding GAAP measures is provided in our earnings release and in the appendix of our investor presentation. A replay of the conference call and transcript will be archived on the company's Investor Relations website shortly following the call. The replay will be available until November 6, 2024. Now I'd like to turn the call over to Frank Bozich.
Frank Bozich: Thanks, Andy, and welcome to our third quarter 2023 earnings call. I'd like to start with a discussion of our Q3 results. As expected, our Q3 sales volume was roughly flat to Q2 and consistent with the lower demand level we've seen over the past year. This reflects lower end customer demand, particularly in consumer durables, and building and construction, continued customer destocking as well as weaker market demand in Asia, leading to higher exports to Europe. However, looking at our customers, we feel we are seeing a slowing of destocking and are hopeful this will end in the near future depending on the value chain. Despite this prolonged period of reduced demand, we've taken numerous asset footprint and other cost reduction actions to improve our profitability.
Late last year, we announced the closures of our styrene plant in Boehlen, Germany and half of our polycarbonate production in Stade, Germany, along with consolidating our PMMA sheet production in North America. This year, we've seen significant profitability and free cash flow improvements from these actions. I would like to refer to the additional actions we've recently announced, which are highlighted on Slide 4 of our investor deck. First, the closure of our Terneuzen in the Netherlands styrene plant; second, the optimization of our PMMA sheet network in Europe, including plant consolidations; and lastly, corporate cost reductions, including the elimination of certain executive positions. In aggregate, these recent actions are expected to result in approximately $75 million of annual cost reductions that we expect to be realized in 2024.
See also 12 Best High Beta Stocks to Buy Now and Top 20 Most Valuable Esports Companies.
To continue reading the Q&A session, please click here.
