TSE - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the Trinseo First Quarter 2018 Financial Results Conference Call. We welcome the Trinseo management team, Chris Pappas, President and CEO; Barry Niziolek, Executive Vice President and CFO; David Stasse, Vice President, Treasury and Corporate Finance. Today's conference call will include brief remarks by the management team followed by a question-and-answer session. The company distributed more details remarks on this financial results along with a press release and presentation slide at close of market yesterday. These documents are posted on the company's Investor Relations website, and by means of a Form 8-K filings with the Securities and Exchange Commission. now call will Stasse. to I Instructions] hand over the David [Operator go sir. Please ahead,

David Stasse

Kim, everyone. in Thank our good and you, morning, instructions follow session. brief [Operator will to question-and-answer participate the remarks, After Instructions]

disclosure on X. noted and statements Slide note forward on Our looking rules are cautionary

these measurement guidance the caution risk release, available from Today's shortly non-GAAP item During presentation XX-K be in you X, forth to cause or is following results the differ call on materially issuing of includes report that appendix is Investor could make be our discussed, future implied XA, our in call. the looking the statements, our May under replay certain will transcript in are actual website our Factors conference investor this describing archived of forward and the expectations. what factors. on XXXX. will replay actual prescribed include may until earnings company's Form The annual differ presentation. set of including and not we that A in presentation certain provided our in statements. We these measurements. must could factors conference limited, results Reconciliation Relations but

to I over Now like turn to would call the Chris Pappas.

Chris Pappas

welcome Slide to key on turn our points XXXX and Financial and like few a initiatives. Results to Please Quarter Dave, Trinseo's First would financial Thanks, highlight Conference Call. to I X. strategic results

income, as EBITDA, fundamentals continue business to positive. we portfolio with First, in and EPS across started XXXX EPS, adjusted profitability adjusted record our net be

$XXX million basis. we quarter of to on results net of and $XXX on $XXX million EBITDA pre-tax exceeded the million, million to of $XXX fourth income, EBITDA. million was income unfavorable First These quarter net adjusted adjusted and our call million a was inclusive impacts $X $XXX $XXX timing earnings guidance gave of million,

increasing goal adjusted to to from in million, XXXX EBITDA towards Rubber on our record XXXX. meeting results, Synthetic by Latex segments of are operating track Second, Plastics in we Binders, $XXX the addition our Performance and

a Our XXXX from these million divestiture excludes segments. expects target this of timing, million is of Polycarbonate the impact Sumika the unfavorable segment. $X and downstream our to share polycarbonate blends $XX plastics $XX business. about of compounds impact JV, increase which that our which reported contributed it of our in to guidance now results. significant produce XX% achieved about our includes includes of XXXX also net polycarbonate XXXX and in that used It is improvement XXXX from $X across This our million of in million is Styron we business, XX% the performance Recall

a often sold to increasing three that margins term have on are our compounds our Our polycarbonate prices, to short a business, means price can beneficial impact blends. lag, while negative compounds in polycarbonate and one month with which

include This Third, information we of Chemical. services remaining accounts business ERP ownership greater and that system. processes, of payable. are purchasing as recently such technology, will enable Dow of initiated a project our by the are the services to These initiative control transition and flexibility provided will out our

next and efficiently two have effectively. to course to years, the the will leverage run these Over greater of processes more a ability we

capacity anticipate $XX adjusted additions, this transition, there $XX EBITDA back about in is million to will has upcoming related about styrene Fourth, expect We added in spend lot million news purposes. recently XXXX CapEx expense, for about million be is particularly about China. a to and $XX been the of we of which, which

current of ground have our net XXXX. the output in rates areas study estimated to turn see progress. styrene operating and extensive consultant XX environmental We additions presentation capacity construction where our work a this records, external through Please It on of in permitting this the to in shows number you an topic, of including amount can reviews done engaging view global an Slide including work. China on and of styrene

over depending closures XXXX to a still year XX% or that in will on As a be styrene is this analysis, of of view result our healthy of on assumptions delays range they operating to XXXX our further about period. rates XX%, and during asset

margins X.X% operating at as rates lot of global about the This XXXX, capacity demand through and Slide highest rates we as yields about XX% XX% prove to operating XX, be about healthy may rates and and XX% It in years, top XXXX projected These and XXXX the X.X% conservative had years. starring show many XXXX, about two to assumes currently in a like X% rate XX% the XXXX, last XXXX. of EBITDA. demand the Looking XXXX operating in each XXXX, for look growth monomer in styrene we which familiar in of right where see through operating we portion and additions been us. line to where of is solid styrene it, XXXX, They are from a has rate between XXXX growth.

the some margins to are view period. are low heading forecast analysis we of styrene some unlike consultants, point in that So the not the of

operating XXXX, in slight On XXXX. operating margins see the in with rates we decline through the contrary, in a as styrene potential rates through XXXX the strong for

builds have shown question as is, already XXXX, versus of relatively of market see you what reality the and as capacity the if potential styrene these We've for actually natural announcements that even chemical plans. reality will we how currently covered in be? the we reach come other we is capacities XXXX believe operating in ethylene of the products, ads many the it, look where China chemical aware and impacting in you the If are chemicals. When the dynamics on Now what the at recent the we are is rates of environmental in initial we other consider like this polyethylene styrene there have in and chain, period. healthy observed capacities that not as capacity generally especially that the planned, will potential permitting, styrene issues in rate growth still

again Now Slide right look the at portion top XX. of

can asset month through the a XXXX to a XXXX six above dotted see additions line strong XXXX, delay the XXXX you period. approach and operating a Assuming in for shows styrene reasonable supply rate closures, very to

more So be new view should the this on of will with margins, rising but styrene change brought by our of net view some growth the its demand, the much impact capacities operating proposed market, to in There rates expected yield and capacity will consultants. than clear: some topic a be in combination rate real muted the likely on

and I'd to guidance. quarter XXXX Now discuss like second

which million, unplanned favorable planned segments. income impact assumes from in some $XX impact $XXX and and segments, solid our minimal known outages we million. feed and AmSty well of the and This stock second performance across our as second quarter, between net so EBITDA quarter, of timing $XXX impacts, For as far between all and other the expect net styrene of million adjusted and million $XXX includes

please to XX. Now turn Slide

outages Moving QX, between quarter, EPS XXXX, for quarter. million net full-year million to timing $X.XX. EPS impact and the between unplanned into million, $XXX and minimal we of million million, expect $X.XX, diluted visibility beyond second EBITDA of assumes income styrene what no timing the first of in and currently $XXX $X $X.XX we unfavorable the of outlook $XXX net $XXX adjusted adjusted beyond from and have of This to to net $X.XX

XX. Now to turn Slide please

expenditures, business purposes. includes to services are cash $XX million adjusted and the for the for cash about we for EBITDA transition, generation, expect cash currently the million forecasting $XXX $XX services transition be million I which will the taxes, million capital for anticipate $XX $XX cash interest mentioned million For business for as expenses of added year. Also related earlier, that we we back for

growth synthetic $XX and plastics. rubber expect in build structural in capital Finally, the from project of we a about performance working million

capital, as another and now, our we XXXX, We're In no yield for of And Assuming working from line cash record solid about across you free portfolio continued good excellent about $XXX we to start closing, year for fundamentals to year profitability well, $XXX off an cash business flow first second the this and other are quarter a operations phone to this million. Kim, open expecting generation. very be profitability in changes questions. through and with may cash of the quarter. million will which expect strong

Operator

[Operator line David of Begleiter Deutsche question you. first the Instructions] Bank. comes Your from with Thank

is open. Your line

David Begleiter

Chris, XX% operating 'XX demand, XX%, those styrene first, then in rates to supply might do get timeframe? the the very low do XXXX, 'XX, on to helpful. you the you next, how realize If EBITDA in XXXX, we compares over the EBITDA the think

Chris Pappas

million those through $XXX made you rates numbers for very AmSty It's years, are the to ranged on in have Those including total, clear. the hard in we experienced to for of contribution, that EBITDA I draw to operating XXXX. we about point $XXX the those is And think from million. David, ones about Well, but similar years correlations, course, those XXXX XXXX for or precise million EBITDA the $XX up styrene, our in now. call,

whether to if at about margins, but So low those healthy they again, be that hard reasonably certainly rates are they'll give going be to there, end. operating we a precise believe styrene correlation us occur

delays changes Now remember, course, those any those to or don't capacities, on of any count supply and other further are the nameplate side.

like be net, to forecast period about. that net, feel is net, something So we concerned not

David Begleiter

that on some announcement. that on think of do this And has capacity recent announcement capacity some producer? by just back you -- by the that closure drove that What and U.S. the announcement, for potential

Chris Pappas

Hard that, to on Dave, for obviously. speculate, us

I may it's to think that that engineering when a may study not or you lead announcement, an decision. read

the us it's that's think exact Other than the for hard announcement. wording in that, to comment. I

Operator

with line And of the Frank your Wells question Mitsch next from Fargo. comes

Your line is open.

Aziza Gazieva

on Synthetic you Performance for It's updates figures? Frank. parts on Aziza those Plastics, moving guidance. to for the full-year explain your just and could The A EBITDA Rubber question

Chris Pappas

I E-SBR dynamic less having down the did do. be that from that's we taking nominal basis or SSBR out, basis, XX pointed come strong the do sales, where which rubber that rubber. we'll which across board, in opportunities E-SBR rubber five, And our and while On see, this rest market, in have quite the really, that's year, the in is down record thing would could of X. X low volumes rubber slightly franchise. in a arbitrage that end change to the of a fairly prudent we're took X other X market, that to the the but to we the develops We far stronger felt as we rubber, fundamental robust in Asia, the see to we like year Synthetic on so think from the year

and Our clear. record volumes year in that of do We are through 'XX. the into ramping asset SSBR pretty expect continued

new subtle year because that's ABS and facility stronger Performance we market dynamics seen our took fundamentals strong change And driven market. have automotive a that generally, So including we we're to $XX China, the a believe have date. Plastics, sales. to million, polycarbonate continued continued in about In portfolio, that we by E-SBR in up including going strong

$XX that against we up by that backdrop, took million. the So one

Aziza Gazieva

Okay. you that And some you laid regarding you dynamics sort the rather over styrene Or announcing foresee next possibly through XXXX, addition? guys not? Trinseo could few out capacity years, would of the

Chris Pappas

We've to clear beginning I'm view capital the that clear. easiest going of question get. the That's of the No. company and our our world been crystal of our pretty deployment since is Styrenics

been not in that We a the general, that in healthy We've the Styrenics eight years place crystal industry place investors where We seven capital see occurred do a think the about are last market. see in Americas that. nor the have world deploy changes not capacity. we We as been to as clear Styrenics deploy overall will over it that do capital. to for

Operator

your from with Koort Bob comes Goldman And of question line the next Sachs.

Dylan Campbell

is for Campbell Bob. This on Dylan

of importing of up a So kind you styrene between cheaper in disparity that then U.S.? could that the through for following into the with but building go economics Just for ethylene actually higher you a maybe costs competitor? the guys U.S., and of maybe plant for not the question, benzene

Chris Pappas

Yes. Well, have because we it haven't doing course, AmSty, since nor we're it a of we do Dylan. studied sense is not it, of

returns that not in call compared accurate. refreshed to is the directionally engineering of we the it, precise bars. we the we're the studies, as of at pretty gray view have bars, while deep this we kind of And that sense our you not I think publish, doing If morms gray look it's

not a that So use XX% morm. quarters to might. project, XX% per a we in where more. morm about use the But we view, in XXXX, would reason several some sorry, look will projects, we morms that been at you $XXX X business, there's for over the at from about number about a at one, hurdle XXXX think is -- more if importantly, capital ton, years, a or we've the our morm $XXX the you XX last IRR number this had was about $XXX a IRR And have --

numbers, those now So to are be European fair.

view, and more I So XXX, at a drop picture, IRR, you would gray from are X%. XXX, it that just of many incidentally, would unless lower like it's that, a of look those if morms bars, suggest, lower when point think, about much many, That our those be, XXX. there you course, believe months than

the continue have for are these So time, et to to view you'd that period et have a morms sustained cetera, going of cetera.

don't of as with be think said So many just investing all people we've styrene to in are monomer that backdrop, going times, a we now.

we are are to and will they're don't in in also build capacities view been suggested certain certain capacities, to recently our China on also think think operating going they don't rates on by certain come what has reports. going we that those discussed drop We think I analysts severely, but is believe clear. the as

Dylan Campbell

then it. the of outages demand the going that that across your a level average on what, nameplate would boost And I'm that on I kind normalized think change or industry. bit mentioned And outage forward. operating operating outlook, Got normal because we've and that curious guess, I thoughts rate quite supply seen that, was rate of capacity. you on

Chris Pappas

industry, but basis. additional that outages spring. but planned in And they outage basis. X%, been be offline there digits, consistent this X%, in the planned be capacity can period, X%, X% quantity, the a be spring think bit, an have little I of they're the in planned a relatively the smaller a season, on out XX% always single there's would capacity, heavier the might lower a fall, on planned vary In

plate represent capacity of XX%, this amount still name China-based to XX% reasonable the run and a that Now, they global we have non-integrated traditionally also those remember nameplate, include timeframe. styrene in capacities capacity, the at and in pretty at

dynamics thought So those operating that should rates. are, I your you add into actual other for think, the process

Operator

And question from your with line the comes Jefferies. next Laurence of Alexander

is now line Your open.

Nicholas Cecero

This is Nick for Laurence. on Cecero

when facilities just up styrene problems guess, of what's pattern or these terms I been in with within historically, looking So the starting the back chain? kind of delays new

Chris Pappas

that and particularly Nick, nor been be I dynamics availability; the been or China. actually people large does the polyethylene was there think I of complete to these chemical definitely industry, There's six because going world. I year. to plant pressures, example ethylene, industry, a to have world view that similar, it's precise timelines that the are There get reason those of ago whether cracker is did Well, the occur. some consultants those, are other kinds an of general permitting; use polyethylene very environmental years combination never polyethylene styrene of a they've made are certain to a demise generally, as quantity studies announced, to close had past of the quantity a the the Bringing matter were delays. ethylene plant. in chemicals, by suggests, delayed view, and things: of Engineering or many announcements of now the done an number a of It and three in doesn't that Those straightforward. built order in months on XX% not to according of that large-scale as in on plants, the the lead

outline construct, dotted easy be our to as Nick, line it's our of longer a we to clearly, planned. did be up see. point have that; not view And in and some we the I think the norm, according to reflective month our put what of it is view the from was on capacity wait with So could than delay. there that that six put we'll But could

Nicholas Cecero

And then color demand different you Very deceleration? helpful. where more. just provide might and can the acceleration some additional seeing be across on one some Maybe regions you or trends

Chris Pappas

Demand across the healthy. us trends generally, are very for regions,

seeing across we're seeing Nick. the out SSBR by in say, construction, in our differentiate wouldn't We're I it can the in see board. particular. I strong demand good region, You automotive results numbers, U.S., very of would

generally, good global general just conditions economic good think trends. demand I and pretty

Operator

with And your next comes of Ahmed line Global. Hassan Alembic from the question

is Your line open.

Hassan Ahmed

guys helpful, Chris, supply/demand the you very presented. obviously, analysis that

sort make I you've addressed this questions. know wanted I I'm right. few to Now response to And understanding just sure of this different a in

out guys nameplate effective in nameplate factored and of given you capacity your in. have You I rates. utilization earlier guess, to isn't one questions, the side And response said

in it doesn't in in utilization doesn't outages, this of rates factor factor lower So China. obviously obviously, the the impact

The sort the be few to there this was What shattering chain continue are you third of a capacity analysis? Styrenics rationalization with be other regards the or or in assumptions that with of of on of obviously, sort touch I thing in baked supply/demand to or that sort capacity China. that check you it wanted chains, to in

Chris Pappas

XX, our we in In of dotted line different the that solid month delay there Chart capacities. the is the than on six One have line. assumptions two are

other that each closures, footnote plus capacity The the assume line. XXXX, That's X-month construct, you a small it KTF it the XXXX. chart, of XXX creates have closures solid Hassan. the on the see the we dotted of can in we amount our is line that from of years That in delay, that XXXX,

that's in assumption to relative closures. the that's baked So

we rationalization, just an particularly made we outlined. there to it's Now look hard in will I be these to but say know of just industries and or China, continue assumption whether closures that not, what at

environment like the we styrene. XXXX, the solid line that pretty situation of itself healthy I looks XXXX an this to had in where is main creates think point rates on operating

point long the a potential The dotted XXXX is time. XXXX the in there point is operating by driven the we've then other two in occur of to for And rate closures. potential out highest period dynamics XXXX, third delay and line the the seen key is, the to is

that's think the chart. I substance really, net, entire that on

Hassan Ahmed

thoughts obviously, in China were Now of would initial just in well. side of you the guys a if whole list to as that your A I a of about as puts things. couple go the tariff your impact business? follow-up, scenario produce, takes how included around hear and tariffs it would the through, to sort products polycarbonate love like, that be draconian lots and is, these of

Chris Pappas

we on gave and think changed has Well, on had the then, don't you The view call where will, numbers styrene, from if that the changed. views on our changed call. -- view haven't the our we gave our at I that last all proposed tariffs, numbers changed. we nor as Nothing

I until were we we finalized see they're would a we just the come think So a and ago, be change where final until from months couple exactly that. numbers out, don't substantial

in. in now. delegations there's about but a And dynamic, I They're globe dynamic, the a the don't is in polycarbonate, macro out I'm relationships about talk ago. the positive lot here there trade macro in to chemicals involved little by of was view, trade we'll little work to specifically, that have how Now more this frankly, way, not well a see while actually my export. then we there dynamic,

we're So it in a We polycarbonate. X it make remember, we in polycarbonate. net a Otherwise, XXX% use sell of Europe or purchaser and Europe We plant. only have buyer of Europe. we're in

would be in not So by directly polycarbonate. affected we anything

Operator

And of question Vincent Andrews comes with Stanley. your the next Morgan from line

open. is line Your

Vincent Andrews

working in dynamics out free downtime, capital or free if through first looking tell how Just cash the slide guidance last the your the capital working and big and should quarter, build walk the And planned in just the on quarter for back the given cash but lower, volume shaped quarter from ahead you us is in wondering Obviously, year. that can flow flow your are the a the higher of of this build? two year? can't range at I decks, expectation, half you

Barry Niziolek

prior add you think at -- this we anticipation in the recovery, down. From mentioned the things is because A and on Barry. the quarter, if had is I couple dynamics because shut on pricing in in look of quarter a about of we maintenance to like from the we're of, builds the prior one, track. of the that outflow part call, two, first

at we plants look it, back and that more expect quarter quarter. we over close and as you our the then as in pretty recovery As second see to third from ratable probably back up. -- come we're the bringing amount fourth a inventory there, a of And use recover the you'd fair

Vincent Andrews

then just more any on and as Chris, you're thoughts strategy how of within a of commodity And variety of sort sort the specialty just the the portfolio? up, overall sort of terms about managing products in or follow of bolt-on M&A,

Chris Pappas

you utilization be itself view really, say, have changed I'd company about we capacity to One that thought our time drive vectors, at would extend started company this amount enhance Vince, shareholder really of rates for public, and the view and into value. operating would When a haven't the obviously that that value view. constructive, primary if three we went was all. of certain on to and that the we and we the of we styrene expected still a period will,

etcetera. the and M&A, share I burner, It's on company. environment, which especially our approach it think a buybacks, hard do of market could includes Second, we the of low and put both had Rubber, for been that dividend Performance in doing dividend, smart type. certainly, at I this but still still cash, of we've multiple, view; Synthetic to back portions both moment, million our a return multiple the the targeted investing of to rising the is Latex, through And more track view should other $XXX the use for. would that We it any that we're and what EBITDA Plastics. balanced have to three, valuations, we which that in company, be, growth given we shareholders, on have company, just for grow

believe cash believe a managing is thinking think growth So buybacks around levering be us deliver be styrene going we're and we're at we same going $XXX target M&A. those you We lower million with constructed. share think to We dividend emphasis our on continue be our and going smart I to about things. to ought to to

Operator

line question next from Barclays. of the Fisher with your Duffy And comes

Michael Leithead

This Mike this is Leithead Duffy on morning. for

a mentioned this today? how, next? the business just and this at through how And that year strength, if you're into I think, slide. seeing of couple Can update us on how market changes times all, this You've about developing polycarbonate in you're thinking you

Chris Pappas

balance polycarbonate been trend on of this limited the Well, through We're the the a we dynamic. of It's has going a it's capacity to year. less, polycarbonate more margin. rising terms There 'XX, of We be year. part small early in is in or the same probably think in a coming 'XX, 'XX, constructive very in that's player the period, so forward polycarbonate. think continued

that plant. one looks is have because be investing, the interested a is polycarbonate place if is no. question And in We good, answer would we your

continue is as into we blends to business. can our our polycarbonate much in move compounds polycarbonate differentiated strategy Our polymer and to as

polycarbonate, to we look As an arena, merchant we do the less capital market. where is of that, that be not growth. would And participant deploy in we will a for

Michael Leithead

on about circling $XXX free what on you this dividends on guess, to cash Makes on about spend we million. year flow, $XXX of and in kind sense. I extrapolate And about did $XX million million pace then buybacks. for If back the is guide XQ, you're your

sounds So cash half your that In about think for should of is the It not flow? today. looking I we mean, cheap. attractive M&A free how valuation, use described you like as other

more get on be the the aggressiveness there through buybacks So we year? I as could mean,

Chris Pappas

year $XX We'll on see have the to million, did how progresses million. buybacks. $XXX We targeted we

look We additional We cash challenged high of hard have returns the organic highest projects. business recently think our growth. are one our to return for leaders at growth

organic spot we would cash can year of XXXX, to can company. I the for to little into work a don't of put a bit get bit place the for think cash that late give If if with we for to additional time through be the that's time, into use So I intervening the thing 'XX we in And develop. think a accrete a of good that growth, that a bad we're little going chance, in as company. we

about. So we'd at this would stage, direction the thinking that be be

Operator

next your the with line Matthew Tudor, of Holt. from Blair Pickering, And question comes

line open. now is Your

Matthew Blair

It's turn to demand X.X%. Just XX. been The years of have want back like better, right, been Slide on showing X.X%, to X.X%. past outlook have couple around the

get So conservative is past just up would going to a be did great. that forward? a spiked putting of want there sense, the something demand? that years number Any a couple Or you just that you're thoughts out -- see

Chris Pappas

that, Conservative a number. When We put analysts we do worked own our at historic these we couple let's I of X.X%. using years with the turns industry felt, we we And together, hard are in. to than X.X% Barry But more like people. the hired, and actually it very X.X% felt, And look, consultants that's forecast, X.X%, to purposes be of put higher to this should mentioned. for that's out terrific, the if upside. the have

but about forecasts about thought you say, and the another, them "Hey, in reasonable approach." any a put we'd we'd approach. aggressive we like it. direction a or to as took it. deeply When as you these at approach way about reasonable forward, we guys like was an that look think Not That's fundamentally So management to

Matthew Blair

net the, that styrene in sort styrene, And I derivatives? Great. any integrated. with AmSty also I fairly have little but capacity well Asia, Just is you growth long in the on a pretty at did upcoming -- well then, its in think and looked integrated perhaps right, Okay. styrene Trinseo you're Europe the think of thinking is

of to X% growth areas and same you too? do the ABS those So like in polystyrene and capacity of see some kind you -- do still derivatives, X.X%

Chris Pappas

We do.

be not However, our building investment pretty polystyrene. priorities we're there, going I think, to are clear:

in and for would agenda, look in at Matthew, or and styrene growth In of some SSBR. be Polymers continue Styrenic has way, would would polystyrene. in our course, recently those investment downstream to not polymer continue be we ABS, SB in those things the polymers Our -- China the to been, latex China,

Operator

And question with line from comes the your Juvekar next of P.J. Citi.

Your line is now open.

Eric Petrie

What's is China capacity This the average then negative styrene operating versus able to is P.J. wondering, were capacity that how And cash within your I breakeven non-integrated? determine study on for you in is on was much Petrie at difference? or how much market, utilization cost? of Eric integrated

Chris Pappas

got But we question general. think I the is that your here non-integrated line. straining in integrated, question, China, I from think your we're

So the operating rate for those historically facilities have XX%. XX% been to

in in in recent as high In think of Dave, most range recent last we several peg at -- period, I the I'm months. that period, so them Eric, yes. end the maybe the looking the would

in today even XXXX, third. has at not capacity, on the XX. about the now not of Slide have capacity you non-integrated. a bit to that much. significant little go if look if out But to it's portion change there'll be a order going Chinese We a the defined is changed of bit Today, integrated, It's still a a future you

So do you just drop on forward. My to maybe to those if math to China, built guess it's XX. a going the quarter, work have capacities would get as in is to outlined

will will up, described non-integrated integrated the Page the non-integrated XX-or-so be go on will down, that's come the period XX. of China building but still So at in this the percent end

Eric Petrie

and economics to profitably operating specifically, or the of the then non-integrated, they are And integrated Okay. unprofitably?

Chris Pappas

cost local is and they're... actually last low. out just margins non-integrated that are depends in be by numbers on. makes less view our profitable. the China them facilities and for What in were The and the the profitable, right curve, more and the end just at Well, China And the know the inventories high generally, month quite do of are it styrene week the so integrated definition, in are on and came proposed which now, we would that

Barry Niziolek

XX.

Chris Pappas

in XX, time. down to a that's from, the XX. so think, Below they've long I XX They been lowest came

on high not a suggest So amount or there, prior at days great. or lot would so, in that would not a suggest there's which going not of is the production, profitability XX production of least

you. the can give about that's only data So we

Okay?

Eric Petrie

of the And targets. lastly, $XXX million core

You had that XXXX. more to remaining $XX going do do to investments you all time out million have growth in or existing Is a couple to from deals? be full

Chris Pappas

have XX, really because but negative X It's have timing. XX we a we

that we've the XX facility, communicated net the Investor in drivers not is we of if from SSBR Day, recall covered. are that The be the about activities today, small in through really time is main between existing, up small intervening projects, Day, the of in XXX will is of couple Day timing. in projects, from at XX final you question the not ramping ABS committed we're the committed done delivering the and So from a million China, at be in facility and project determined. outlined we XXXX that two and largely one it that delivered of time other XX Investor we Those notably have projects, completely acquisition and which to quantum ramping from covered which acquisition up million the we've million Investor your XXXX. Germany. answer as XX million but November And largely and of defined had And

and XX So where I exactly gives think, we number. sense that you stand we of, have a the

Now remember that the XX XX have uplift, includes in and polycarbonate basis we to more on XXXX. deliver

Operator

conference today, call, this there and at are everyone Trinseo concludes for this may today's disconnect. to now joining no further and you questions And time, thank like would

Trinseo (TSE) 4 May 182018 Q1 Earnings call transcript