Trinseo (TSE) 4 May 192019 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Trinseo First Quarter 2019 Financial Results Conference Call. We welcome the Trinseo management team, Frank Bozich, President and CEO; Barry Niziolek, Executive Vice President and CFO; and David Stasse, Vice President of Treasury and 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 by means of a Form 8-K filing with the Securities and Exchange Commission. now call will Stasse. to I instructions] hand over the David [Operator

noted you, everyone. note and are morning, and on Slide instructions] statements Thank good rules [Operator Julie, Our disclosure forward-looking on X. cautionary

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

the Now to to like hand over I Bozich. would Frank call

that our a of Conference in positioned first part the Trinseo a to with months accept quarter be Trinseo was Pappas' honored of Quarter Chemical to financial I my well developed Trinseo's a of multiple is communicate and part Dave, CEO company to carve-out operated of position our CEO. a profile exciting into EHS Thanks, diverse welcome results, a created assets, process since This I and phase growth. first XX% share opportunity XXXX to joining or Call, Trinseo. Financial but incident. Company successful join Environmental time the to about impressions next of as safety since world-class of that two for excited speak first saw First spill to strategically not an commitment markets. integral with ago. company leadership has Last to has attractive morning, only a leadership injury, Dow the team Trinseo's Results in year, to is my Under with safety because also I'm and President you talented XXXX, culture. production plants Chris health in financially high-quality position the is an without the both and performance people and an this from strong

to employees' achievement top for of leadership. our strong that to sheet, with the which getting traveled enjoyed during I to agreed that he's Switzerland; the job I've strong Trinseo's It's me employees' in is we our and further Together, Trinseo's the my channel Company the is upon excellent to Company. done and grateful possible. the along the work on It's recordable core foundation inherited, Company's this balance leverage safe passion and at success. position growth. a passion the his to for XX% to that at Our clear opportunity direct further he is also am the quality me the This listen remain result meet insights the to and transition thoughts with to accomplishments Chris thank in the the following want foundation for to their Schkopau Directors. thoroughly I companies. Board an grateful the he shared many I of period. employees Trinseo this of on of hard practices around of his world has exceptional commitment to support I'm and rate is to our in injury for Midland, peer of offices, Horgen, Terneuzen all in safety our Germany; diligence, Michigan. and and Pappas their Netherlands; labs build Trinseo growth plants

Over X I've reviews of business of each the segments. been last months, conducting our

Company the evaluations, the of better to an position initial these we've As some future. taken steps for outcome

only evaluating XX% site, global the and First, facility, strategic our This are represents manufacturing in capacity. our alternatives we capacity polycarbonate of for Stade, European polycarbonate polycarbonate manufacturing about X% is which facility of Germany.

you global appear about of been margins last our and headed may merchant this in as sold capacity and lower remaining China, compounding facility's X As new lower over China output demand know, more business, to to supply market. consume we be the due operating Polycarbonate the the rates screen. is in quarters on XX% and have comes XX% into in challenged

the allow market, us the market. to to our alternatives position lessen to the relatively and small merchant outlook study our strategic we've merchant polycarbonate evaluate commenced this earnings to in would Given that exposure

expected core Latex is ownership us control construction will to providing both which assets latex that our to adhesive announced ability latex based enhance capabilities operating signed services at under flexible latex on styrene units facility the penetrate primarily alternative of agreement production and thereby These agreement butadiene acquisition This market, this acrylic we latex its to Company in Dow operational definitive applications growth Rheinmunster, an capabilities the Chemical additional with yesterday, with further more for identified Germany, we've Since Second, market Trinseo's provide we've assets production a to expanding and and with production full Binders. XXXX, for producing both styrene we've as butadiene acquire Dow. been develop chemistries. chemistries.

We expect end this to of the close the transaction year. before

to of expect year with approximately immediately accretive million. $X We this EBITDA will first that contribution earnings, be

million its less up next first the per years. XX $X will in in during year due than We pension and expect million the opportunities $X ramp should future. productivity years less with during than costs XX to The year service liabilities this assumed per growth be the

cost goal framework offsetting accelerate and a to for and as that this our continually business is The the costs to results. Finally, aim with aimed initiatives excellence inflation. part as implementing productivity of program and the the build are a reducing processes commercial we at functional of structured improving becomes well fabric Company of being

our weaker-than-normal end of most we outlook. business somewhat and move markets challenging environment globally. slower improved in results The tire let's China in across on but business saw automotive the and fourth and continuation demand the Now we markets quarter QX, in to saw

However, quarter headwind the under half styrene in despite a marked drawdowns, market cost second improvement over about inventory showed conditions first outages and our We fixed cautiously results related absorption from improved in $XX million the optimistic to of XXXX. QX. remain

markets. quarter was Our indicates that the bottom the the XXXX data our of fourth number in of

QX Excluding seven and in net the derivative first market China outages have timing in unplanned styrene Also, were and polystyrene QX Rubber weeks volumes in from ABS, recovery. and than in Synthetic margins impacts, XXXX. inventories and for consecutive fallen higher quarter

therefore, the $XXX recovery to of updating some we've Similar we're Slide material The doing in remainder XXXX China We how sustained included of in million quarter $XXX economic the the our guidance of we requires midpoint to pace million recovery net a of quarter, the should improvements with XX limited follow second on beginning end Therefore, guidance to tire the $XXX believe weak are and, key gauge EBITDA $XXX guidance you the relative indicators year. automotive million. last improvement our end economic million to of markets range in to our assumes $XXX adjusted guidance full-year assess through along is the range. million. low range continued to with of income in an our high range of The markets. China, and range and

of thank We So be appreciation, end compliance for begins leadership utmost to like a Barry -- Company. and tenure. before want thank before you take the his we him will more June programs at being as transitioned with the to his take operational great a and a strengthening to and and partner call for recognize Barry, the retirement Company's your family. moment last Niziolek. time spend discipline financial his and me questions, in I'd I've respect to during wife into have earnings This his well-deserved our to the you performance,

role. while building very Barry, I'd company have and smooth this to During invite want the complex and with July Chief has of XXXX, strategic worked you as external to CEO leading Trinseo comprehensive closely Stasse function Dave of search suited comments. our executive on assistance for X. to previous Internal markets, I knowledge His ideally take last -- in a effective will public evaluation business, at to Dave organizations demonstrated him like joining an Barry organization leadership Officer our few candidates deep we've few Trinseo. a the do on And global and make Financial to and global his and a experience Investor and within organization. three Since enabling congratulate appointment years our so, months, make role the continue the transition. financial over Dave transitioned Relations to completed we as treasury firm, a of past

of future watch interest with new and and part strong year reason CEO. I your more very been and thank the kind honor Frank adventures. with my well call joining successes growth new Company positioned energetic our that be sheet an of are articulated talented is the brought the join very Frank, for for with the beginning booking that wife, of for balance Trinseo. next leadership to are the operationally-focused the family, Trinseo first It's same I, will quickly Company. this My of with Susan, up my reasons me team, out about you believe spending I excited great too, the time retirement Company the is The words. to and at and a organization,

that, phone the questions. with Julie, open you line So may for

from comes first instructions] [Operator Your Begleiter question Bank. from Deutsche David

the could portfolio, or disposed same be perhaps there or sold. Frank, viewed as you've going category in that or a business as polycarbonate businesses that identified assets through gone be any to you've of Are non-core other be forward? to

and of of have we those really would First, of a the we to we number for earnings ensure minimize options we're that evaluating, goal compounding couple points. -- toward downstream we polycarbonate -- be -- are The I business. that polycarbonate to while of polycarbonate a have the supply the the market of merchant and assets, the goal clarify would high-quality volatility want strategic to that

improve considering. there's earnings. ways different options that we're say, look portfolio our at number of to and I in the But would will quality the So we continually a of cyclicality general, our reduce of

is as to this a matter going we're of So something practice. do

and capacity the the curious just of over good. of years. potential cycle, on impression styrene market new Very And in coming styrene couple the next your Asia overall given of

are the come favorable last see at improving, levels. high all one Well, for add around we've environment. those that as point, -- of think fairly specific regulation outlook. local rates. But see some term, these we XX% that nonintegrated will and environmental facilities issues put that so margins and if announced as are We near a at anticipate would stream, capacity regulatory of the have we of we this being see of manufacturing And moment, it will China. want we Obviously, -- rates tightening near favorable Maybe tighter heard and that's term, on in recent see styrene China, I on and to some to about be the the just environmental in the by plans pressure a target operating all environments. I mind we operating impacted very in Chinese keep

to So we chains that, this the it value potentially yet, effect that. in that do think has we our seen haven't -- certainly but

back point. are about the -- assets And that David, China XX% to other nonintegrated. thing in going Recall, one the monomer of maybe

or that's said I've have a And kind past things online. move-out been least has the always also been so one capacity Chinese because the seemingly you it as since on capacity because Company at of stream, joining issues interesting the of comes three is know, delays the for if years, -- that the potential with raised is of coming

Research. Frank Please go Mitsch from ahead. Fermium

on Frank. Aziza It's for

foremost, all First you. to of and congratulations X

Thank you.

through discuss question April seen the far and through possibly the pace business in the and maybe first was, could of My us across what you've thus walk the regions quarter you segment? various the

a the through guess when would in impact it's general, demand when has at the you those significant that, -- QX. on But about our global portfolio look that take say, of story. think the China value a segment-by-segment what commodities. in represent And most it's on story And I or we a I is would China segments. for maybe say they I chains we're in that in, general, So you broadly

of and the -- China represents demand XX% obviously statistics. I'll of XX% you market. of largest XX% for global so some E-SBR the the of demand, and And world's and demand ABS, XX% give polycarbonate auto styrene

global So weaken when trade it and China, flows. changes has things in a effect

that Rubber due that unfavorable had business marked management. compressed speaking, from you at in volumes tires -- and of to really if and $X we were $X timing But market million from our said, year-over-year latex new were XXXX. ABS net in volumes weakness that by margins up OEM driver look but of standpoint in with prior Plastics, offset China, down of new segments large In inventory Performance replacement in fully to lower and up not had China quarter, volumes piece here we in held but mainly versus up that volumes absorption the tires, and were was under Europe year up our slowdowns relatively and market China a Now stable. customer at segment plant due QX in that ramped million globally, won margins was demand. a were

QX pressure was to restocking were in the year, in QX margins were after destocked feedstock of and because China. and in customers due prices. polycarbonate due However, largely prior Polystyrene to demand due volumes to that weaker and up ABS drop under

So the I would that's give you. sort overview of

Maybe add if just I it broader to up if North would America, holding regions. probably I'd good. you is In take say

just have there. overwash a we and the automotive reiterated, from For we say, as market we have Europe, China, weak Frank

very is helpful. That Perfect.

curious all? shares repurchase that how buybacks latex that? if you slows bolt-ons? at with over do if deal, about Or that a have if guys you Just down think guys preference And

please you question? Could the repeat

at is deal rather curious over this that Sure. how preference have bolt-ons if I execute if trading been level. down was buybacks buybacks shares and the just than to latex slowed there a

yes. So

consideration, the make important the of point. plant me it cash of the acquisition let assumption be employees us. who of as Rheinmunster joining required So an so liabilities no was The pension the will

will over call, I to said costs, those our to the is $X use the year. earnings than -- so this first use also grow asset time to productivity and portfolio. accretive for through a million -- assets put be drive that and And And liability we as you the as those we of decade in immediately, assumed will, service if that in expect less

So it our positive and has a earnings. virtually -- has on flows it impact only cash

go from Alexander Jefferies. Laurence ahead. Please

Your is line open.

Good morning.

couple a guess of I questions. So

sort back And the existing at so to can you cheaper recycle Or be good mean, see feel that? I do where $XX, waiting can secondly, in see talk about that that to the you quality maybe polycarbonate or things can JV, that little us First, give growth envelope, a the action a infect from into to the you already mean bit flagged? oil? $XX do polystyrene business? of of AmSty for you either than a opportunities you've low-hanging you material feedstock the on apart the where Regenyx? fruit I were of like, it Just done, back grade can thinking speak, about

of see this the us on first Where who in for second a the I'll Thanks term we're perfect I'll portfolio. the good drive to from TXXXX separate the talk the waiting across lot about frankly, Chemical. to business the rolling one. because sits done, two to our And I wasn't ask to and opportunity timing Dave, is now Dow is take out AmSty's but questions. be near one, and for systems board, our excellence Program

So about it's our its at business us processes. core, -- redesigning

dimensions: have four in power our leveraged there's portfolio, us think have that. in and our I work So commercially. I look is we in on that at and processes, I opportunity chain and in in excellence our we commercial believe focused under that for significant supply our program operations, plants' Commercially, when think pricing addressing in I our functions our

is again, in roll productivity -- more different commercial that on drive in a be So with -- journey -- excellence out, processes commercial momentum, and our operations. word and, this across will dimensions the more gain drive again, bring functions we'll those to as excellence use I'd this we we our a to in

give to just background. the -- I'll morning it's Good Dave. comment to listeners the And other Laurence,

polystyrene And So the JV grade styrene virgin they've recently, that Styrenics into its it's -- to is that -- was a be North -- called JV formed purpose Styrenics And our can last and announcement back it has joint monomer, through and the America Americas of venture is recycle polymer. monomer recyclability Americas week. Regenyx. of styrene first has a And system. facility. actually And shipment, polystyrene through the the think, received already the of run I their made, in

one So and right now the jurisdiction, that technology in on scale one is its in proven. idea to recycling It's the of grow really that the and obviously nascent technology technology. the would facility and only form improve and be working the obviously with

only comment to this early It's of would with on too in price kind and oil. obviously say the technology and probably, that grow But that working program, technology facility different its nascent improve efficiency scale in just technology. the obviously really idea operating the is form proven, the of is levels and be of to now now right on the and stage of one early recycling that think one to I would the jurisdiction, relative Laurence, I at

just shipment industry for monomer I through sustainability back outcome not the of the a Trinseo the has And Americas for as but it its comment joint and early is yet too just different relative that at probably, But kind of on oil. first to this think say AmSty now stage I relatively is on on polymer. the positive of system. small price Laurence, operating styrene the venture levels I technology from early its polystyrene whole that's very scale. proven, a the think a Styrenics, program, it efficiency of outlook of to and has improving would run received for,

Duffy Fischer from Barclays.

that X at we your new Slide roles graph all Asia, seeing? to pressure we and years, if you as the bleed-over particular, with this say, in is high about XX styrene we're China current morning, again on congrats were inventory's It's any guess, transitions. XX, first, that level to impacts Mike stretch can seeing of Europe back, inventories anomalous for look on the in well? I if five, all you're and you Leithead how And in Duffy of talk

Yes. head. again. that when back two stretch to periods that if have reached I just frame is may Mike, graph inventories top at be five of probably the were there my would Dave other styrene over say time years, off least There that you That's level. it's more.

off I So anomalous. the wouldn't over about to We Frank our as as that have turnaround that bleed rates improving we kind period, got a start it's trend of season, the into and -- call, and we talked predicted polystyrene mentioned, operating wouldn't in China. it say rates, a five-year I which say it so with derivative that's has, last in inventory we expanded developing, ABS now operating looks would

quarter. So it as we that looks to to us going continue head into second that, the is

Mike, global you As a styrene know is commodity.

and So China huge -- is styrene. importer of a

will, if inventory styrene have but the margins parts of So other impact that world overhang, you an also. not global China just does in on

I is increase. margins We're styrene reason optimism. recent. As inventory we I that China improving in already contract reduction first gives us the part quarter, we But of the seeing QX, the in quarter a -- for settlement which head levels think into think had of the versus second

then would up of Got I strategic unit. it. to the on want polycarbonate a just And follow review

said Frank, correctly you is XX% production if internally. consumed heard you call, the in earlier the I think of I

supply sort weak you okay So being if you of offtake with polycarbonate? with the that in is with what would some agreement Or to need sell sure supply to a be unit, price buyer would hopefully you you that that back environment? do choose

Yes.

long-term effort for be polycarbonate whatever an by economics as at of goal means, that Our will a to best business. supply secure, downstream of high-quality this outcome

options number a to accomplish goal. have we So that of

reiterated are think there I Again, times, the questions we're and a but multiple of the on options Barry. is exploring, it options couple are This of Frank table. sale, all

to So that's a want that just that's sure I message heard. make

one emphasize point. to want just I And

alternatives. of we're -- the approach and reduce We're this site, while this to of ground for committed a with sense urgency too. resolve a will number running We uncertainty urgently to

Citi. from Petrie Eric

market would there? positive this internal had NDRC on policy autos, an appliances, you. view year? stimulants to I level I of think But your promote the coming consumer any which high a be of for thoughts Chinese home believe is into What consumption electronics the draft and

Yes.

-- industrial far appliance QX, and So actually, some And industrial weakness sales encouraging The a China. spot a in -- also styrene there polymer for production turned high-impact market, our strong March. positive retail Performance volumes vehicles. we despite QX. Chinese out or I'd for as electric have so in in increased output underlying In in signs very ABS we which was in through car the combustion is seen point HIPS Plastics output good improving general QX, that about, or inventories internal polystyrene. talked was the bright that -- dropping. steadily then there our passenger

might it is super the business Synthetic our great our Performance Rubber a in China high-performing XXX% a sales while Plastics business year-over-year So be term, in impactful in short growth not and tire. for because the EVs EV trend require long-term

momentum building, it some gaining traction. is in there's like So feels and the general, stimulus

seen blow to markets the haven't way it through over We date. all

it's time start be economy. somewhat line seeing while reminder, economic is it'd is I the XXX-day momentum opinion, of to this that more there And a XX- Typically, line. with about of you'll type think good My time building. into probably is any fully a stimulus, just

Okay.

you better thought, Secondly, are incremental feedstocks I million absorbed the bit cost. $XX than a and

from much benefit how So prices year-over-year? you because styrene purchasing did lower were

and Barry add wrong. color, can to make had if Dave because me impact Well, of styrene and of we in then $X QX negative outages. a purchases correct a million I'm I'm comment, from going But

on styrene net was million. the So $XX negative, that of purchases it was and impact part

was AmSty -- January February, outage a which was planned in AmSty and million had million well. $X other that Right, impacted of and the part $XX also. as

operations that million capital under delivering intentional $X other working due to the cash. drawdown was to then of of and absorption related $XX Yes, in finished inventories our million and the good

Please Koort Robert Sachs. ahead. from go Goldman

Your line is open.

Bob. for on Campbell Dylan is This

million generated of of if that take first XXXX the million the implies guidance quarters, three about So assume the quarters? just $XXX the throughout compared which and for last $XXX EBITDA that EBITDA equally curious, segments quarter, across your drive $XXX is I'm it improvement to sequential per end I million low for quarter.

Yes. been has the to the underlying that styrene we'll in the those the outages There's What factors. second lead themselves and a QX of in at look general, our due out. other it low if Company of driving the pointed the that is, was lower the see end of as at hit very due the seeing -- play have guidance thing that two the end performance the we XXX, well-defined the say I would and initiatives P&L inventory have that then cost you productivity gaining to that guidance half is we in would levels beginning out that we contemplate low margins And QX, the the would to in planned improving we're year. that traction

end low markets scenario So the tailwind guidance in downstream in the some additional to gets uplift our to require various higher segments. minimal those markets. our with get China it of guidance into range would would that the that's of of How different sort and and --

cash Thanks. it. for strong cash you a Got quarter. flow, What on your full-year is the expectations flow pretty XXXX? then first And generated guys free the free for

has reiterate, capital so to capital. working feedstocks' assumptions update on and are unchanged -- the essentially, quarter. the that is hard thing there's year, really hence, to predict, to cash an we impact but the But full out slides, very no the from one on working our put prices For last

unchanged, million. of the I capital really of year were you'll we think a and we managing out prices had note, release extent and that started we feedstock working down strong aggressively $XXX to about with the inventories

aggressively inventories and our So a prices. spike borrowing and we're committed feedstock to managing in continually

a can there's you cash think I numbers. in see our potential upside flow

Got it. you. Thank

our clarify, listed is the are assumptions, to upside deck. the and capex, guidance prior to referring are is just minus the interest the tax mean think guidance you slide the midpoint which I that unchanged that I from in all take Barry Just of

Thank you.

Hassan Ahmed Global. go Please from Alembic ahead.

open. line is Your

Good Frank, morning, Dave.

pricing to the wanted start you where Just left of side guys capitalfeedstock things. on off sort of working

of much. rally haven't we be it's methanol, you sort that major in in these -- crude products year, propylene, Now high. it it prices. be be haven't was a feedstock strange been procure, quite oil moved the it that that they major a of historically, prudent -- where is sounds And really the fairly guys just it start ethylene, correlation obviously feedstock And up saw

question these of my the your Are half prices guidance in full your the about in is factoring in back an similar terms along of crude? price? to you So of right is, as you what a move-up now? sort feedstock year expectation baking about with in just you this products year Or think the of are environment

in oil then of A comments. of -- -- naphtha I heavy in direct or refineries. a couple guess and oil of I'd comes NGL gas. natural percentage big a cracking make only The portion from our our have derivatives products crude portfolio cracking correlation to

So correlation and of there or our in all segments our again, direct cracking. oil is complete feedstocks to a a all not crude of to naphtha

that would are where impact. our adder, pass of contract protect commercial those and year where our and an thing And pricing, can The we mutes activities is of in we depend recover any materials at we those many any significant contracts raw beginning and leverage via our have on. margin as we would that have, more to contracts, we don't volatility than -- established the of have that underlying we in second business, parts the

the terms follow-up, like? role a buybacks, thinking And helpful. you Understood, new started of you your are the between as dividends, balance Frank, cash, understood. debt and as of usage paydown Very how in about the and like,

I'll it. take Barry. is This

see, to we return you as -- cash our we're think, I Forward, see Going growth while going continue investments to shareholders. we're to

it. Got

So change seen last no what we've couple months over relative and to quarters? the real of

million. first we at $XX about look I'd bought say our if quarter, you back

-- important the emphasized sheet, And Hassan, would think organic when be paydown. particularly no of of plan kinds the of kind good cash call, I we like growth balance strong one growth. add a is thing point, at, investments any will what I for our focusing looking I -- on is look at generating, there'd we're Rheinmunster. use debt you It's like

Vincent Andrews Stanley. for Morgan

Angel on actually is This for Castillo Vincent.

in to question around ABS guys, stalling so. rising you in that about prices on comment a for reconcile morning just just the about raw on up guess, and what in I'm been think levels, was if the that just as curious, the you your encouraged comparison just curious or There two quick can there least bit materials. I and quite very at about being Asia. how I next margin Just means report ACN have a this quarter

I I is think acrylonitrile large I our acrylonitrile you one than, to obviously Angel. can brought our of business. we our take -- what ABS -- in is up and mean exposure

As in his we and -- versus nice or prepared see a ABS and into going first Frank in QX, have margins in that we mentioned seen also. going volumes pickup early into remarks, QX QX the quarter

we're seeing think due operating that's any of Asia. pass rates don't I specifically to We're in seeing increase that's in And think impact. the I through ABS So in some again, that to polymers, able -- pricing. we're an part that acrylonitrile these

capacity about [inaudible] that think on the SSBR, the And regulatory, were volumes had or that Got back that working I actually have you've there, of comments about as and then very bit just perhaps the because ability a little place And through there. just just that of curious of China to that excluding that talked had you you ramp-up you it. That's the there. and think so -- made helpful. I holding were the taken about permits you you exposures ramp-up grow perhaps mentioned to --

and the that. you on And how regulatory your the SSBR China ramp-up; if be give process just two, [guide] may us curious impacting just, that permitting. update -- just an one, So could, on

Maybe an just your things there's Zhangjiagang to couple year site, that really we question. clarify saw started relative to to okay? a ago. a our about because we of that was and what ABS in is And which facility, The -- recall, was permitting up reference for

was in QX up so completed. of XXXX, that's That ramping

has around if actually in market. is in you held consumer SSBR buying to high-performing consumer or back rubber. which the sentiment up -- commodity primarily look we've changes seen high-performing well, downturn market tire E-SBR very the tires, but you where targeting go And is patterns a the this largely tire lower-performing or If SSBR,

But -- had is E-SBR, goes mix -- good tires. SSBR on relatively pressure -- in demand. is is where good. big our we've So lower-performing our that had good and We've actually, for the seen destined

Matthew Blair from Pickering, Tudor, Holt.

planning Not an on supply a update styrene March sure your are Germany? June? the that April. reports in some fairly and plant There in at and were large that could you your benzene turnaround was May provide this, missed in if I you plant still at And then disrupted but operations

have it's was upstream Germany did We Dave. correct, The getting actually you're that second Matthew, question about unplanned supply that's manufacturing caused some quarter. first disturbances with Böhlen, And the an in styrene quarter outage a there were planned already outage our facility. in started. the

outage planned now. So it of started outage pulled and that that planned little right entered now. We kind we've then bit a forward

kind that up be site that over. the is -- mid- of events maintenance after planned we would to with late hope planned QX are our out So

you Would about then do your to good. in it it the talked clarify, improvement. on sequential the guidance, be the would point? modest quarterly $XXX Or just starting QX I just a to be regards what consider $XXX million? million EBITDA? Sounds And wanted you be to

No, million. the starting $XXX point is

of America Please Merrill from go Bank Spitz ahead. Lynch. Roger

open. is line Your

and morning. Thank good you,

Good morning.

is Can impact plant? -- Can you morning. SSBR the Hungary you market? the JV speak and on about good there the What JRS' status

Yes. Good morning, Roger.

a fairly which JSR a an through sure several they in JSR, European give. not update I right of announced update is this anything would fully can an to company. fully with haven't the and it's manufacturing can now, that has commercialized referring heard facility only you I'm it's in site now, qualifications that's is -- is was for through I'm being Japanese sampling. Hungary I formed really with SSBR ago to if running beyond only with you're capacity, the commercial and production that SSBR. Eastern going really sure entering believe and be grades I customers -- in other qualifications Roger. but SSBR and That's I give them years a think not JV -- of rubber up going I running manufacturer

tongue-tied a was little that. I you. Thank on

JSR.

reduce wholly want of On time to where you that cyclicality exit to should Styrenics, reevaluate And for in your XXXX. help there Yes. long does American the necessarily are EBITDA Styrenics doesn't assets peaked obviously the JV? you owned your very assume Americas or business? mean rest and it as I you, I help ROFO a parenthetically, wish ROFR

just of part to our overall position globally. the we the we year date. as well -- our our would of evaluate for it's as styrene But as we performed include continue our overall and -- performance have strategic portfolio, that Well, of Styrenics portfolio. Styrenics we think review like we're And parcel Americas of Americas

making Rheinmunster, on when already And lastly, you Do there acquired line to it. they of guess, additional have a get additional or you you two Chemical's capacity? the Maybe producing is this latex. lines Is capacity getting? I guess second didn't you acrylics your I Dow refer that that access they were it SB you control, facility, were here. had Germany you're Got to there? behalf. Or

go get additional depend. other our of a and different but we we products have itself we that the Also importantly, that of to manufacturer portfolio higher-value markets. in into So more get asset higher-growth than capacity lends type

additional it. but only serve not We to So leverage assets, we that's capacity, what's exciting those capabilities the expand the can that about some growing markets. have to new expand

styrene Roger, chemistries, are butadiene assets those beyond alternative latex. And

Thank you.

you does participation. now Thank We our this for your end And have disconnect. question-and-answer you the session. today's may conference of And conclude call. now reached