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Trinseo PLC (TSE-3.03%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a net loss of $87.3 million for the quarter, compared to a net loss of $38.4 million in the same quarter the previous year. The loss is attributed to increased restructuring costs and higher interest expenses.
Net sales for the quarter were $867.7 million, a slight decrease from $879.0 million in the previous year. The decrease in net sales was primarily driven by lower sales volumes, partially offset by higher pricing.
Cost of sales for the quarter was $787.1 million, representing 91% of sales, compared to 96% in the same quarter of the previous year. This decrease in cost ratio is due to lower utility and fixed costs.
The company reported a gross profit of $80.6 million for the quarter, compared to $31.3 million in the previous year, with the increase attributed to higher pricing and lower natural gas hedge losses.
Selling, general, and administrative expenses increased to $97.0 million from $66.6 million, primarily due to increased restructuring costs related to the 2024 Restructuring Plan.
Interest expense for the quarter was $72.3 million, up from $46.6 million in the previous year, due to higher market interest rates and the execution of a payment in kind election on the 2028 Refinance Term Loans.
Cash used in operating activities was $99.3 million for the nine months ended September 30, 2024, compared to cash provided by operating activities of $131.2 million in the previous year.
Trinseo had a working capital of $305.5 million as of September 30, 2024. The company continues to focus on cost-saving measures and restructuring initiatives to improve profitability.
The filing also details the company's ongoing efforts to divest its interest in Americas Styrenics and the impact of restructuring activities on its financial performance.
Trinseo does not anticipate any immediate changes to its dividend policy, with dividends of $0.01 per share declared for the quarter.
The company continues to monitor market conditions and adjust its operations to align with its strategic transformation goals, focusing on specialty materials and sustainable solutions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Trinseo PLC quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.