TSE - Earnings call transcript Q4 2020

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Operator

Good morning, ladies and gentlemen, and welcome to the Trinseo Fourth Quarter 2020 Financial Results Conference Call. We welcome the Trinseo market 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 yesterday. These documents are posted on the company's Investor Relations website and furnished on the Form 8-K filed with Securities and Exchange Commission. Instructions]. [Operator turn to now Myers. call the will Andy over I

Andrew Myers

[Operator good Thank and everyone. Instructions]. you, Christel, morning,

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

presentation. guidance of certain actual with During forth Factors caution must these other discussed, actual materially not statements, may forward-looking cause reconciliation includes described non-GAAP presentation, appendix provided in could differ Commission. XA that annual obligation undertakes these The of in company and no be X, GAAP limited Today's in our call. results its set make could our investor what will risk our measurements. this certain the including factors statements. expectations. we you measures A A conference to available the filings issuing to revise statements. and from call measurements The the the include, conference Form are and results corresponding website following that or Relations on release February until to We is earnings on but or to, our Item describing of Investor presentation future be XX-K update the archived transcript in shortly forward-looking is our of will XXXX. replay report in Exchange differ or replay and Securities made company's implied

call Frank Bozich. the to over turn to like I'd Now

Frank Bozich

and quarter welcome call. Andy, Thanks, to fourth Trinseo's earnings

emerge I We team challenging agile impressed and and our very by of issues I'm environment weather a year. by most passion very Trinseo. in my to throughout future were and doubt given like collaborative, thanking to accomplished, how First the rapidly the enabled us all adapted made successfully and what have the economic remained changing very start I'd I was work, compared beginning bright to financial with our the looking years for stronger everyone conditions. in proud for in their crisis which experienced for working position how we during continued the XXXX. social focused and especially they industry. to XX storm of foremost, overwhelmed employees to was as very the I'm an I've unprecedented forward XXXX, no the even never engaged that their of and hard

overall Moving to performance. with our financial pleased XXXX I'm our results. very

quarter, December in see we As EBITDA and issued the improved we pretax adjusted income X than level across our more its profitability to at fourth noted demand in with continued guidance, company years. in and strong the highest

third the in for with Stronger commercial led second XX% beginning the total resulted than automotive in quarter fourth XXXX. EBITDA XX% Base since and including our of adjusted excellence declines which, demand quarter the along tighter Excluding markets, we many X% volume higher of in after end the X% appliances, was volume prior sales feedstocks, was to as year our of the quarter. in than higher our especially and automotive, observed highest tires quarter segments quarterly fourth in in prior ABS strength the Plastics year demand our actions, market, where

highest pricing value-based Polystyrene polystyrene of job products appliances. like in excellent it's EBITDA ever. differentiated team segment high-impact full done its an Polystyrene In addition, our The enjoyed implementing year more has adjusted for

applications sales including CASE In consumer and as the Latex year due to environment. was increases adjusted year, quarter and highest For by The a flat growth ever EBITDA as volume prior And improvement X% applications for to Binders, paper. a expect This our in of applications. the electronics Engineered graphical volume higher-margin experienced a XX% earnings our to demand applications. strength, fourth mix chemistries XXXX in the with were segment fourth quarters essentially offset segment. improvement the in its footwear the expand we year, grew our was for highest is Latex volumes year mainly CASE from versus in line of the continued enabled in board Binders for decrease full growth the quarter, into by in full the over ever achieved more quarter. the Rheinmunster strategy which Materials segment, despite alternative has attractive us CASE in fourth acquisition prior macroeconomic quarter challenging course the from

of report. I'm X what and initiatives which offering in at safety further July, goals of the advantaged were These all back to celebrated goals executive in announce anniversary is with of for of XXXX, set XX% use footwear we positions reducing for to and there ECO that include to leader XX the our site example at the with In our which Fernholz and Fill to increasing German achieved very grew sustainably achieve products, the position sales these Seal in transparent of spills we In Form to employees and of our the used to was our with we XXXX our XXXX, of vision workplace which circular the X compete reflects incidents customer Materials, is we in in statistic an food sales Looking applications. providing that sustainability emissions sites we injuries, attracts sustainability to our were those Trinseo, company, our a as no a recycled employees leaders expand our a polycarbonate XXXX, that of able mass XX% to a market. our impressive of and this process goal the and sustainable volume which importantly, Setting materials is advantaged That made increased Engineered more PULSE successfully in tracking key our at during daily. Series solutions meaning partnered applications, were earned that ways of injuries facilities Most our doubled recordable top of in commitment remains balance we talent, are resins XX-year in plants electronics of economy. This global annual women goals our senior X by accomplish. including as were while Triple of portfolio. ourselves when allow along were percentage X formulations progress increasing to bio-based of XXXX. sustainable happy with The XXXX I'm or our sustainability utmost will the contractors carbon more of years I XXXX, ourselves our can a that There for that several customers. sustainability XX in in with for consumer like the become the employees part market-leading, polystyrene, important offering we materials packaging or mainly product a proud and management year. our certification sustainably of And compounds, large the especially Zero released we year. milestones to in scale. recycled-containing the truly launch safety safety which adhere award, pleased automotive recycled-based polystyrene.

its in a polystyrene applications. numerous is progress plants with significant in made on recycling as to goal down we've INEOS styrene represent This to polystyrene polystyrene our circularity further will plant step Europe. plan break for for forward use back for joint our Lastly, monomer

I'm an be we to we'll proud of While area, us more sharing the accomplish to this continue achievements, to industry. more as as sustainability XXX #X in accomplishments most I year by a look sustainability, this excellent in have and generation. as top year's us responsible forward XXXX course Newsweek cash in and companies one of was for materials XXXX, recognized over evidenced for the naming still the which XXXX. leader made updates of

led free to prior Throughout as was the costs actions quick short-term programs cash in and by flow cash $XXX we million, to implementation response the structural Our pandemic, from employees. as of able year, which million. to thanks successful, to pandemic put to full cost from place thorough the effectively which year in operations our were the were well manage $XXX

structural split roughly short-term equally cost between million, full the savings $XX of year, we savings. which For captured and were

throughout this transformation we business We as year free this we to the in of XXXX the to acquire entered expect significantly biggest and Arkema's the provider. add and margins, portfolio, steps PMMA very an increase business, higher provide which million strong solutions represents of development short-term scale per We're in sheet Trinseo the our the cost will in a it agreement materials lower cash our Materials actions to $XX our conversion with forward, prudent. excited Engineered and high special of and $XXX million past will cycle. Going flow believe we advanced volatility first feel in with into year place and Perhaps liquidity was keep as balance long cash, structural the is ended year savings we as position.

market and, the as are allow Integrating of In market as has by year comprised harmonize of acquisition, many applications to middle benefits strategic only the the to office we highest for such closing is polycarbonate, within of legacy quarter have margins efficiency some being anticipate instances, fit, and in but conditions. us many strength automotive of management IT the momentum similar the strong polystyrene. of now is and increased ABS, significant the will our fully we In providing positive contributing both time are ended will the staffed systems of still an our our the business Trinseo year. members we're and with conditions addition integration not improved since favorable targeting volume segments, in this Arkema and That Trinseo, to create a into to observing a organization. we announced XXXX priorities, segments. established in continued first Demand we acquisition Trinseo. one demand and which in the that transaction appliances the higher

the adjusted that net despite However, expect we don't as QX. sequentially be in EBITDA repeat we in performance, improvement market benefit of quarter we million to to enjoy did itself $XX to first this timing favorable expect QX lower in underlying

the year a to and with to with are leverage net income and Xx range Synthetic of a deleveraging the year PMMA from each an $XXX targeting start the EBITDA further to in adjusted from net estimate Given at XXXX, significantly pro and generation, estimated we X earnings to million of ratio no $XXX acquisition million. performance assumes approximately the cash years, year, for $XXX be strong resulting expected of This of we than the forma higher million the now With contribution thereafter. $XXX full XXXX this full contribution PMMA million announced Rubber of end acquisition. prior

into problems. I be will success our and determined materials me conclude transformation products Let solve saying differentiate business, our to value am working create customers by business future by systems. the company's where sustainable more how implementing looking practices, about harmonizing closing and best we we by our forward provider, the upgrading and specialty a integrating and excited our and solution how to and acquisition employees PMMA I'm the our with the our welcoming new

In pursue addition, long-term business about sustainability goals, optimization to sustainable I'm the and we provide with pursuit additional growth to enthusiastic achieve products. to including value-based our customers working will equally and our continue activities.

As always, questions. for now can we Christel, value. you line remain extremely open on maximizing shareholder And focused the phone

Operator

Instructions]. [Operator

comes the of Mitsch question first Research. Frank Your from with line Fermium

Frank Mitsch

to nice about actually the basis $XXX I like of end think relative who as on to versus looks as to your exists company talk among confusion -- 'XX? is, EBITDA guidance but 'XX, a year-over-year. cetera. where does wanted and to the a nice wanted it see doesn't, the to But Frank, the listen, million material most some Street increase today increase segment-wise, $XXX -- upside do there's of the like to PMMA about of million year, do segments see you you various Where et has look who we 'XX given as your where

Frank Bozich

we're season we level outage from at for So benefiting currently, rubber component don't look pre-COVID in with that anticipate it improvement some then that seeing returning initiatives. Base that will Obviously, our that would But traction we QX. in we're year-over-year excellent we there's will as normalize after see that pricing. will their normal we full continue how to in a we're year, range, a from big supply benefiting when ex second those be demands. there's comm value-based group And the And get Plastics. year-over-year, that the tightness to really back chain

where we segments biggest improvement. really So those year-over-year are see two the

Frank Mitsch

in seems Got you are the first How initiative? that Synthetic you. discuss ability announced Can to in up what environment felt it of when today -- negatively your you where thoughts relative business? And like are of that a was few And impacted the M&A speaking quarter you ago to that the terms for feeling monetize months obviously, is second that's very picking you business, Rubber. here.

Frank Bozich

Yes.

options the business, middle significant So the our we've to we're conclude of process year. we'll interest really confident seen in and our by evaluate that the

Operator

Your line with Begleiter Bank. next question from the David Deutsche of comes

Katherine Griffin

This is David. Katherine for Griffin on

So just guidance. on question first

be So it impact, EBITDA seems up QX. timing like in QX should excluding the versus

of the is thinking EBITDA we ex from, guidance, through full So kind say, $XXX then the in range? to $XXX up assume like is QX that right Am if million somewhere relative the QX timing, right? cadence then XXXX let's for year I QX about that million

Frank Bozich

think your of assessment accurate. QX I got -- you've QX Yes, is

or but But chain there's that QX, -- and some currently be season seasonality we tightness $XX are and we So disruptions remember, QX offset in experiencing million factors a expect that -- ex And typically normal after again, well, but the expect we timing QX. expect in in the -- that would we chain in that normal supply QX then have QX. we some the -- better QX we in X to occurring, business. enjoying then to we and normalize benefit to -- to than also being then supply not due to some timing, market would outage enough we need those would got we're

we how to So range. get that's the

Katherine Griffin

to kind Great. gets kind savings expect through about of the And about coming and just of better? could kind next as demand back year, just then you thinking temporary inventories just cost of how those talk you of cadence flow

Frank Bozich

think if place. if I'm think what in the relax that's understand or question keep I of asking? going answer you're address when measures that cost short-term we'll question, the think continued I to to And we I the savings we've

Katherine Griffin

Yes. No, that's perfect.

Okay.

Frank Bozich

Okay.

both savings So contribution we of cost last initiatives. we and combination short-term total, from million had had -- $XX a year, in structural

outlook initiatives We in we the will until stay savings certainty more place progresses. that to keep and those recovery market here short-term the cost get is

So timetable again, that. exact we when but... an would relax I for don't have And

David Stasse

it's of things. actions the I'll Katherine, that was call, we Frank this The what right structural really, I about mean, of full The 'XX. mean, took couple cost of $XX out of is $XX million, of year so the and impact traveling elements Maybe is million in that Dave. $XX is I for of half temporary, half the company will was, in structural of 'XX, as temporary. and I a part a example, T&E, Yes, add a that the be of was savings -- in million the said, would structural entertainment. big part half that look, cost now. nobody company that travel I mean

think, if gives perspective, that how I of levels about in like T&E, pre-COVID kind kind is the the have return we've year. into things that So all or -- not. elements, and budgeted what But mean, second I of baked guidance. of to is assumed this we've half see What think trade We'll that. shows, our plays you of kind of that the those out to we will

Operator

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

Hassan Ahmed

performance Engineered understand and I taking nicely. obviously, a Synthetic at your was end sequentially, good look And markets, certain autos particular, volumes, I in in obviously, Materials picking Rubber. quite up really

seeing, you're As levels of talk the you with about some came two segments? these volume guidance, a these of particularly that your of bit up sustainability you guys could sort in

Frank Bozich

very confident volumes assuming both the itself. So in I sustains recovery say and levels, that Synthetic would we feel at current continuing Rubber the Materials Engineered

just traction market on in lot introducing. based that new a driving there's We're the it really of waste-containing go couple consumer that we're materials good recycled-containing as that getting we're a post-consumer are things on products in getting commentary, recovery. Materials, we electronics. footwear. good with the that mentioned And So of traction beyond into And or also go our bio-based into that is Engineered materials

those business been or specified. we've new Synthetic similar to wins margins dynamics, So at it's innovations, In that and those growth better new where those playing market Rubber, going introduced materials. forward. innovation-driven in are being And you in a and than performance dynamic business out an we've irrespective of we're platform grades non-recycled winning result are itself tires, have winning we're with -- in sustainable going

again, of but sort today pre-COVID volumes, So enjoying we're improved that that we've are those of commercial think we because taken. the has volumes level the mix activities

Hassan Ahmed

helpful. Understood. Understood. guidance, Very material sort lot of expiring last were year. supply And again, a the contracts on of XXXX your raw

and contracts. will new when it umbrella would of BD, raw be of this XXXX, year, under be benzene styrene, obviously, a So BPA, be of materials the the variety first these sort of ethylene, sort

how puts material about XXXX some in the could contracts guidance these talk light of new takes bit of a So have the should about may guys you we you structured? think and of raw

Frank Bozich

contracts And that conditions. but commercial new in in conditions What believe seeing particular, our is -- we the market-based significant. that benzene more benefits board. that, in would outlook, the styrene again, we're taking. passing are that And not XXXX under. some But that it's are for across current actions Really, had big those market driver and into the for there contracts from have market the XXXX we're we that the improvement that Yes. say reflect we're through are I polystyrene we operating ethylene, in in monomer

Hassan Ahmed

Got it.

of year-over-year? overall, of So in kind net neutral terms

Frank Bozich

would slightly say, I overall, positive.

Hassan Ahmed

Slightly positive. Perfect.

Operator

next with question Blair TPH comes the Your Matthew Co. from line of

Matthew Blair

sustainable could results? the more XXXX. And a how expectations I are XXXX just your on bit in polystyrene was little in just you hoping strong particular, elaborate for

Frank Bozich

and COVID. increased were we're the from sticky. in by that driven So conditions XXXX packaged pretty demand changing demand actions by of and foods driven for is at this appliances point, we that are believe commercial -- they're A seeing lot pretty for benefits and

-- XXXX. we'll that introduced. we've from products pretty that been we're I polystyrene benefit are confident doing the significant in want of the benefit other the to And that is, seeing we're see we've throughout point out again, thing polystyrene also a what So circular introduction

want in we in sustainable so sustainable, our margins And a and I products -- demand. companies are products as would products, would improvement actually, and accelerate in our that. end further see that we we're consumer those products now simply most to expect and consumers more And mix of introduce end really our that we're leader going more our and shift very the are high to growth because a to

as So I sustainability expect performance not for we but our to only continue improvement. make progress, would

David Stasse

to and capitalized our And market, Dave. -- this clearly Frank is in of about like on polystyrene revenue -- excuse add one -- earlier I'd really that's Matthew, volume is got thing areas high-impact polystyrene is value-based our Asia. mentioned X/X pricing. the appliance polystyrene high-impact manufacturers that's And sold to a good of me, polystyrene where there. a on differentiated we've that's product one we've it's the what of

to in differentiated that of I mind that, you stickiness is buttress wanted X/X or keep that there. sustainability we part mind, element I what portfolio differentiated to in polystyrene wanted I said product. just And of So Frank business the the about just keep is mean, to it just -- have of a our kind of do

Matthew Blair

then styrene? to And season the spring good. Sounds be you Is it how XXXX turnaround above likely characterize average? would for

Frank Bozich

normal. be will it think we No,

Operator

with Your next Laurence question Alexander the Jefferies of & Company. comes from line

Laurence Alexander

questions. Two

you of that the in Trinseo your of how capturing structural you you of sets improvement the or have First needs what hiring terms much that And where far is in you chemical have initiatives, room as in M&A, through of that? practices be technology characterize solutions-focused of a the you how terms in of Trinseo drive value-based wants on do brought to skill to and sets then about specialty margins? to terms where all, as go internally in acquiring platforms? be and really secondly, -- characterization just think skill shift hiring think company, can potential in pricing more do And

Frank Bozich

solution And question. and the be start It's as comes provider I'm believe of skills will second a going enable yes, a company. acquired the of that the great successful So the us from expertise we question. to part really lot that a that with to

fulfill successfully specialty and is -- critical. integrating their those key bringing employees market who understand the customer success that in understanding, And markets needs new customer to serve and businesses the understanding -- and preserving those so needs. customer how really to that's And are they the

We So solve new in successfully you mindful and critical. chemistries. or provider to and being able is set to in retaining or that point That's acquiring make applications being that grow to new that these assets something we a with. be as won't the of key skill successfully problems have assets solution bringing acquire

think And think ex the of we have our in question, of about mix. the put much to terms bit. solutions sustainable to there's type portfolio initiatives, going to the more in part again, comm how you a I to first runway improve I quite do If shifting our our continue more would it but

can So seeing the could And see, as we're focused base, contain bio-based material. that. to polystyrene high materials demand recycled-containing customer really for you introducing we're on containing circular

the we those secure I the rate-limiting that our as be really to ability But As base. would and would believe think our offering for as runway will broaden secure those I to improvement feedstocks customer materials, appropriate for introduce a we there's to feed, I long materials. -- there's continue factor they -- say qualify

Laurence Alexander

bio-based lastly, terms cents the delivering higher are pound, recycled percentage those and of mean, of the either materials, margins just I transactional them just in And both per margins then rather than margins? materials of in or cash

Frank Bozich

in yes. unit, in So absolute and percentage the terms dollar simple is answer improving. margin terms they're Both per

Operator

question Citi. next comes Your Eric Petrie line of with from the

Eric Petrie

'XX and If the get inventory I $XXX compares that $XXX half million. your range of million to excluding were to EBITDA, $XXX annualize million to reval, to you second

that $XX comes downside? and where can million million So the from talk about $XX you upside, then

Frank Bozich

Yes.

pent-up QX when when half, QX. a second there's much go the to to second look and sure how the strip at pretty I'm out into think look the you -- slipped not exercise we half at I through from demand difficult QX

we're lines. and our forward a how the outlook So getting on customer basis build customers, at our our that I'd product really financial look base from with and bottoms-up forecast based the from rather

that's So base. -- forecasts there that parts and detailed and we pent-up hard forward got from how it's half demand much a customer was. that again, lot how out, point inventory that to getting moving as estimate really is second that got XXXX to the how had Because, our rebuild range of much we've you we're

again, so more bottoms-up of we And did a build.

Eric Petrie

Okay.

Secondly, inventory in and quarter, you I rubber than did How volumes expected. restocking? do demand any see the year grades? ESBR stronger were you this for see SSBR think, And

Frank Bozich

right is retailers So strong. little ability to inventory. what we're the seeing now We're build seeing strong from tire demand the producers but or

In relatively and XXXX strong or Asia And Synthetic Rubber fact, are would with some inventory other been out volumes customers, with win is, -- the in levels in in grades. our staying business in new we've relatively staying I new stable. new with to particular, point successful thing

coming Asia. we're And from but we're customers more from seeing seeing growth new volume seeing demand more so and business in a a demand that we're where a -- stronger also recovery, change historical mix

Operator

Morgan Your next Stanley. from Angel the comes question with line of Castillo

Angel Castillo

hoping walk cash working us sales you I in capital about thinking XXXX of use through as the recover? of and was could potential magnitude how you're

David Stasse

capital through our million it's neutral. you to number and can Angel, flow million, pieces, those range estimate the of take flow EBITDA towards And work walk some pieces, cash cash a I of if at and guidance our free your free get midpoint you working of that's you'll way Yes. $XXX of $XXX a slide We Dave. for 'XX. deck guess, gave in the kind

capital driver is obviously feedstock working prices. I of biggest our the think

volatility Now prices the we currently see. mean, in we as we -- a don't year. foresee through can I as of far lot feedstock

direction considerably. dropped So our company. we operationally feedstock we say What we've prices. for would our forecasted it not to inventories to XXXX, took keep down a volumes as inventory XX% going anything I year is there. we're either related the about In in And

we're a going not as be to company. building inventory So

we in areas. I other capital working opportunity think have do

company within our to further reduce We implemented have working some initiatives numbers. capital the

price what would on the that would we'll feedstock estimate million net to it, million our So working I capital year. I answer is, operational of a through the -- your a flat of put probably reduce guess, own I in question to initiatives. number just level, on $XX the $XX

Angel Castillo

then helpful. I hoping separately, you talk was Understood. Frank, That's very initiatives. about sustainability little bit a And your more could

your You're with ECO and bio-based business recycled-based a of winning that of some having the you success with launches, or product TPUs it's clearly new lot PULSE whether PC mentioned.

just But does then of little kind EBITDA expand at products. ramped contribution capacity us of you the become of if margins you've better maybe fuel-based needing How And and year what sales? that to progressed kind your on has over give color. of fossil that the some total more are is up as in a of What could clearly portfolio? So the kind -- sustainability sense of your point problem how footprint the good expand? kind a than

Frank Bozich

some is others, making we're What portfolio non. material categories. again, last say, the unit business you across on double-digit you And the synthetic one should be say our end even bio-based of of every many so there's mention I And just call. we've units. an multiples effort that would different certain margin answer the year. is uplift this double broad-based in is are in -- I but improvements. so of But rubber because the a for versus products What on, first actually, also the tell and margin There's Yes. of would this couldn't sustainable for you lot got going thinking there. of in much prices our order would And across give general, the the honestly, I products virgin I I it's in didn't a

footprint. their Germany And certification change our companies balance for seeing So environmental really looking Schkopau, to the site. we're received we've mass and tire sustainability

And a so this. in lot there's of interest

the recycled or where will there's qualify as those bio-based material. feed long tire news -- good characteristics use is same industry when take feed runway of we're like those the we products it chemically materials. industries again, that in But bit using certain the that a a Now to virgin that have performance end basically

I that but significant margins. we're I specifically didn't in So should just looking unit runway, you I successful as thinking you for, would in a the long be improvement give know relatively you're say and there's answer

Operator

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

Thomas Glinski

for This is Tom Bob. Glinski on

the you're So just be what delevering the dividend? half like M&A, speak the you year it post capital into and first the repurchase, maybe priorities to just target should Could expecting maybe allocation sounds your XXXX this expect we to acquisition. ahead of of between Arkema question, a to in see schedule on year on back re-upping

David Stasse

question. that This is I'll Dave Yes. answer Stasse.

You're right.

are One We well, generation last forecasted the forecast things. ahead since and has is EBITDA two risen cash schedule. we're ahead schedule, of numbers. because And we because the for of of also reason our

needs So think we'll of -- in we PMMA share levered program. Xx did the announced our the the of by end those With announced reduce and net we as dividend the acquisition, assess cash projects have something the be we could when do other suspend growth we move I the XXXX. those neighborhood of X repurchase be mean, we'll will things in acquisitions. forward organic acquired we as for for the company cash business company and for be the or other need to context and new

post-closing. look something at forward have as just So we we'll to go it's

Frank Bozich

that -- just Dave maybe one guess build is the I on point I making. want Yes. to

will customers M&A as said we to the product we new offering continue -- and through announcement, have broaden opportunities explore we lines. continue December bringing -- CASE made other when Engineered and when we this in to will in We that Materials to

systems would priority thing to to But other the first business to of help appropriate the be too, that to our and is, growth. more the obviously, looking harmonized. also the products is at we integrate our get PMMA will separate fund we -- time, commodity Now

future think and all about our we factors of when those the capital balancing we're allocation. So

Thomas Glinski

Got quite the through in go outperformed, CASE applications, helpful. Could then strong parts, XXXX. it. within maybe what just And you what performance underperformed sub on That's was moving business? and that

Frank Bozich

point think applications, really customers. well, our terms So in with that lot traction production applications, out and saw more CASE acquisition DIY. could have into we that what read for particular, would of introducing flexibility is in plant Germany, the products new solutions we But of in tailored strong the smaller more I in the you customizing Rheinmunster I in

DIY that adhesives the So sealants last and year. and quite market did well

that think other and traction. robust, think materials Rheinmunster were and to applications. really technology point some if introduced Those market on quite strong. construction those I -- got But it now was also in and grades end I based was to good were have and DIY, I the new that we We

Operator

question is Your with last Jefferies. Laurence a Alexander follow-up from

Laurence Alexander

I Are those just -- will they decisions any in divestiture products. to commodity excluded wanted to bio-based recycled the around portfolio? from are Trinseo's by being or be exit the positions and those implication, their included revisit discussion

Frank Bozich

So the no. is simple answer

our product business we trying of sustainable our that ratio and So in and the customers. seeing our segments, we our believe we're from are of areas one is big in demand -- increasing advantage, every to products

one every to what we're -- sell, in those to evaluate of were line would we our future, product products. with the businesses as segments, are across make if intrinsic it. that product So those that products introducing And happen go that to

Operator

does and today's Ladies that conference gentlemen, call. conclude

disconnect. now may You

Trinseo (TSE) 4 Feb 212020 Q4 Earnings call transcript