Trinseo (TSE) 9 Feb 222021 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Trinseo Fourth Quarter 2021 Financial Results Conference Call. We welcome the Trinseo management team, Frank Bozich, President and CEO; David Stasse, Executive Vice President and CFO; and Andy Myers, Director of Investor Relations. Today’s conference call will include brief remarks by the management team, followed by a question-and-answer session. The company distributed its press release, along with its presentation slides, at close of market Tuesday, February 8. These documents are posted on the company’s Investor Relations website and furnished on a Form 8-K filed with the Securities and Exchange Commission. now call will Myers. to I Instructions] hand over the Andy [Operator

prepared follow you, everyone. session. a are our morning, and listen-only instructions this After Thank good participants At Dee, the participate to in time, all mode. remarks, question-and-answer will in

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

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

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

including And everything toward very great we becoming journey adjusted a everyone, $XXX and net listening I’d XXXX May. is PMMA Aristech major transformation on achieved $XXX To year we I’m which was EBITDA. income the acquisition materials of Trinseo and Andy, our in we of to and of further September. and for our was of PMMA welcome, as million of complement a million proud acquired our accomplished business, provider. who our the Thanks, like first record profitability, sustainable At producer, solutions the end Surfaces in cash completed transformation, step we sheet in announced the XXXX, specialty PMMA transformation, continuous in.

We also of early process business Styrenics began business. in a January, to we December, Rubber the in and divestiture divest formal Synthetic our our completed

As and to also providing but toward our earn of portfolio a solutions sanitary. actions, of result revenue of to our current enabled shifting applications. is automotive, have increase additional from markets – into like these applications, products as we’ve tied offerings higher-growth are more product million earnings The expand higher-value, numerous material our specialty products to such aside not cost toward $XX higher customers consumer acquisitions than expected synergies only provider, to and to us more additional a stable that and of construction, and that to identified. wellness The the margins benefits with more synergies being financial in acquisitions

with aligns strategy goals On with of solution This a the year, of our becoming acquisition post-industrial and of our we recycler B.V., offering our of our – to provider. January XXXX a overall of and Heathland our both products and waste both in this side, leading sustainable increase of completed sustainability post-consumer sustainability sustainable in collector Europe.

supply with range waste in feedstocks. polystyrene thermoplastic other ABS, more the growing Heathland The largest XXXX. we to products industrial secure than up to already the of more logic, that in given were serve of like sustainable One including access and making consumer lot of their wide products, be customer of recycled will great an recycled a is largest polycarbonate, the electronics. increased those transaction constraints PMMA, high-end of us has and a is acquisition sales to revenue provide applications, processed Heathland fit, the the XX% that prior of and and acquisition, of

sales on post-consumer We’re organically. XX% focusing our of growing consumer over sustainable our XXXX, In focusing products more increased sales, prior recycled sales of year. electronics polycarbonate than market volume our by also products to

products package used first grades. the product, that contact that food which commercially time for standard three packaging to recycled environmentally-friendly Our the with which applications, – delivers viable, two in are were polystyrene of a margins industry provide times

a Triple chemical the from Belgium, on our progressing In materials, we stellar industry plant experienced which EH&S Trinseo, tightness no use to created performance. by Tessenderlo, those extremely Zero should for process XXXX. XX% and obstacles challenges addition, are standpoint, efforts people I’m these year injuries, high-quality made to to events products deliver weather our external proud while polystyrene, was incidents. be another Numerous general. logistical markets. not customers, just XXXX in in sites a freight in in but polystyrene ranging to achieving factors meaning say for challenging recycling received eligible especially From further of the of safety company business our our address and operation order in operational to spills, Award, the yet year, recycled I’d the COVID-XX, of or sites our labor of

improve as impressive the XXXX. ourselves, our EH&S we’ll for number to we and As we attempt that raise is, performance bar continue set to in

over color performance. the Dave, on going who’ll call to more to our I’m record Now financial provide turn

by despite and earnings that allowed to maintain earnings demand encouraged headwinds. two robust strong were and were and start margins polycarbonate of quarter, events, for fourth healthy unexpected to the of our us Fourth in by ABS, unexpected many demand like products strong some significant impacted environment generation. by polystyrene. quarter delivered very talking and I’d which We about continuation still the headwinds, cash Frank. healthy Thanks,

the half unprecedented in engineer late which gas $XX in remaining increase European natural was prices primarily and million. The first quarter, sharp feedstocks. the materials, was by in of impacted an quarter was a and this half the About

EBITDA about from and materials This million upstream results about was with headwind Materials Terneuzen Adjusted mentioned, mostly styrene outage with freight than impact natural $XX majeure. as in $XX costs. an by by lower was gas plant, just force second $XX from raw was the caused million, and The unplanned from our higher expected, at in feedstocks. costs, which I our segment Engineered million, remainder an

While we in pace pricing they the not the steepness the fourth increases. of did actions extreme cost did and quarter, cover take

Looking costs ahead believe earnings in quarter, we that segment. will main first to still the will a the actions the for that Europe, be pricing high taken sequential is improvement gas driver the this and what cover we’ve natural that very in

we $XXX was million. $XXX For EBITDA. adjusted record and continuing Net from net and adjusted the full million was EBITDA year, income operations delivered income

the cash divested The combination and the of to $XXX from million. operations as two for range, higher net free ended leverage strong and the full forma we flow of cash generation We also businesses. earnings generated with pro the $XXX times million led of cash year acquired deleveraging low in impact year and substantial of

in our $X.XX in and our confidence quarterly we our strong $X.XX the to to dividend balance the from the this generation, Given per program. share sheet share, made and to improvement in reinstate continued decisions quarter cash increase fourth repurchase

turn I’ll to call walk XXXX. our outlook for through Now Frank the to over

Dave. Thanks,

first higher hindered products quarter the to continued demand that of the expect quarter, on year costs to and for the our earnings the rising to ahead strength earnings. fourth most similar based be impact Looking we less prior from

we’ve time in fourth gas And manage quarter. For more Terneuzen handle styrene to production example, into more outage plant February, persisted natural from even in to though declined and downtime. had costs has prices the Europe procure the to effectively materials have the

in an prior So improvement there to first similar the quarter quality earnings. expect the while we should year, our results be our be of to

spike the the the feedstocks. of Materials earnings in commodity As occurred XXXX our our specialty more and replaces QX side of business in and Engineered that side portfolio on

can of and to This automotive million, EBITDA Over seeing outlook customers change products, including to of provide constraints based earnings for world markets. in $XXX adjusted robust hurdles, reinforced ability to in the from shortages The $XXX XXXX, But similar demand electronics with business full with is synergies conditions $XXX of and year, to proven additional million product that net the our range the to overcome our logistical unique two we’re the quickly acquisitions, continued events we’re expecting demand and and last fact years the solutions. and construction, in million. on on from we’re consumer this our strength innovate based confident appliance earnings geopolitical chip have and as $XXX conditions. underlying million teams income

to and of million of $XXX $XXX another ERP free run for $XX with result We historical $XXX for higher million expect well, number is to rate in generation cash capital XXXX spending which million million CapEx $XX with That spending least than as continue implementation, $XXX run be approximately and of flow rate $XXX solution our million Thank and of projects to our transformation capital our year million shareholders. our solid and to manufacturing and to of level, as we savings expect of $XX cash of becoming we’re this cash It’s anticipating cash million we return in DCS in down higher and M&A any Trinseo Even move sustainable we’re to which time Materials with you, while plan exciting questions. of to continuing cash mix line the generation, transformation an we for provider. Specialty Trinseo a growth a strategy deploy happy strategy, take our operations million. to from after to due upgrades. at robust our path expected CapEx

Your first comes Frank question Mitsch Fermium of Instructions] [Operator of line the from Research.

started Is good of offer a any just know you moving there, recently anything terms Styrenics. am that that and the us of timing, parts. there the of would thoughts that color that provide all potential I lot Appreciate be could Hey, process you terms strategic on I can morning. helpful? in in on the you curious

where North that I players, say consistent which three of announced see in very who the feel the strategics financial looking I Yeah, on coming process, the you we high intention greater looking on call on Frank. timing, say, that buyers, good exposure think return. Europe, be is we well process. interest our said the about we to consistent cash about exact but synergies, strategy as in generate were And are, thanks, would would And that, very we Yeah, those as and sponsors, a regional just right to the roll-up are we are executing we’re interested look that. feel when now. that we of should with get would with And what cash the where good be anticipated in from a last to we would to classes we and give good seeing for I America quarters able updates would sort what start

And M&A, indicated will, which you returning helpful. expectation, just cash flow to said, very free very also you strong but you shareholders. That’s cash indicated your and

$XX million any sense anticipating in should strong in very You be XXXX? in obviously a buyback fourth of started what we buybacks out a with terms as to quarter, of pace

Yeah, Frank, morning. good This Dave. is

put first place, fourth would levels. to when similar quarter. look, for in – at I this think, that by, it’s think opportunistic in when it’ll to what think, think the for And then was lower be the we’re number think continue as we to undervalued I in it a expect our continue intention it make did obviously, I probably in trading quarter. when and program when – buying we back nature. buyback we’ll going And way I we we run nature to and heavier, I quarters, opportunistic said, we’re future

very That’s so Thanks helpful. David. much,

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

level of I’m sort that margins? segment a figure boost we should margins sustainable tricky should sort Good doing all company. morning, a a raw obviously, of margin to inflation that were the sort sort in guys specialty the sort below that Obviously, good be? of how the margin was Question out, again, saw, within material bit within business, you just these the we Frank trying margins overall what just in of but the Materials. quarter And are profile the boosting job I quickly noticed, a of Dave. being XX%. Engineered and a of with expect of of around

is great in QX, question. said, $XX raw And, freight. $XX normalizing the back split materials were gas you rising if in so $XX to about between me and due QX margin, EBITDA, of take let as million at million add million rapidly Yeah, in due the you’d that we – gas to and the Dave spike – looking

as – is suppliers what I in time they prices also we spend why spend I raw sort depressed me for that. aware But some think we of experienced minute saw profitably When was Let we our that and I to quarter. the and gas, explain was spiked think of what – happened will the of production and on I quarter. back more quarter the in a And many that mechanism give materials with cut saw you everybody what also it in to what pricing don’t our material in natural we produce. any up, need couldn’t raw because gas context

And go to and continue market demand so elevated were really plants and with we higher keep the too at and We logistics buy to at levels. optimal running. prices fulfill spot the costs into required running materials

And that so, because impacted we material on the – so business the side. raw

it’s since the in of up second say normalized the spike Now, quarter. that been I’d half

Engineered not the we have As we pricing. Materials mechanism calls, mentioned in on pricing previous is formula-based

where system we monthly We to value-based and provide clients. have pricing a quarterly our pricing

way, dramatically a costs we’ll unprecedented like So if did an spike pricing in during – in lag. have they pricing that period,

that would And QX, January pricing we put view. we I in with is that headwind won’t impact consistent based that see would tell the the in place. so expect on that that actions And you of I

guidance could Very XXXX gas you what helpful. if of Very gas where million to question to I helpful situation we And way $XXX regime things. is down? EBITDA lag, given, that of $XXX the down And on sort because lag. gas for in? mean, European the million you I’m have guess that whole is, side guidance rules, pricing of that comes you see get I in of outsized that rectified, that the The where on guys more sort situation alluded going factoring a with just actually the if margins does pricing could to the European sticking be

So the there’s two question. parts of

the price. gas reflects So that first question current the outlook natural current is our what

in So reflective businesses, to we of the formula-based our down, if is pricing of – that in the go volatility pricing most of the because of don’t would environment. it’ll have costs formulas. – current that again, irrespective range flow the through part I the P&L, continue say

However, as value and just in EM, market price we pricing. that’s said, we in on EM, a have based structural

would So, see environment. declining we improvements cost in the

Thank helpful. much. so Very you

Sure.

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

and fit And of acquisition, maybe just into to three can the Thank longer? strategy? it five the looking overall Good you. Frank be road morning. a big at the portion has your years, right even Heathland how down as Dave, recycling recycling business

to be excited to a Yes, about important Yeah. for recycled us so many markets Hi, consistent and really David. Heathland – steady to can our have is our solution, it. Because stream us of have and customers and of go to guarantee that to recycled feedstock. we’re able we end a with sustainable solution we

– ensure able processes so recycling have is securing within we own best believe And the that we the to for Trinseo that and ability. being manufacturing that or us to we and way have guarantee that

goal granted see our on XX% be sustainability is future, portfolio significant sustainably expect the advantaged. XXXX, this and would base. But we in to So we would our from to a by growth see smaller of

that sustainable be be because that that And financial we’re XXXX. So a of we petrochemical-based by magnitude higher. significantly some seeing with higher to products. orders we expect cases, accrue XX% target solutions to would multiples more benefits that the XX% would In it cases, higher, margins other the see than on in –

think we well new the how the just Dave, at Very CapEx, a good. CapEx should for about Trinseo ex-styrenics, new growth as as CapEx looking And on maintenance portfolio?

XXXX $XX well, portfolio, – we it styrenics, at including terms I million. the if of maintenance about Yeah, CapEx think, is in look the included

the styrenics out CapEx – $XX as between take million for it’s that, it’s portfolio. go-forward and probably maintenance If of million you $XX

and Frank a as other thing I’d CapEx, while. you’ve to So relates mentioned, as point this been covering Dave the is,

about multi-year will be know, be $XX and year, project several that that been million will have spending distributed we years the we’re for software over. control million spending you been upgrades, that’s with it year will this So the next – this on year, so then we’ve XXXX $XX project, be last now.

we that. year after year, zero year, big this that next is which spend, then is to $XX SAP other have $XX million for million goes The this install,

kind after year next spending items, would lesser So, are we’ve and a year have will discrete go those that. amount say, – been this away on that of that I

Now and we’ve would pipeline, of projects that, robust very new said a we’ve I the say acquisitions having all portfolio made. identified the have growth we around that

it’s So projects. growth have these we’ll I ready we think But XXXX think, give CapEx, to say – structural more fair of some that be, a it of kind fair there to to we’re healthy is say, guidance spend while will on items I not leaving, on CapEx obviously.

Excellent. Thank very much. you

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

Frank good Hey, and morning, Dave.

Eric. Hi,

back acquisitions, half margins, low XX% mid I think XXXX Materials, both going materials, and raw teens. year-end second the EBITDA businesses excluding natural the Engineered to and did when Just the you gas had

talk So that about can XX%-plus you to the back track level?

in Materials Engineered run I that lower earlier, forecast two But current than is the – automotive And would historical – the that second our is – shortage I volumes the affecting rate. historical automotive, don’t dialogue chip the also want had headwinds. rate. will we the build we other relative explained on point what that the half repeat as QX I impacted be the will is – to of that to what I factors the year, market to

And so, headwind that’s an EM. for

builds, of because China, of has business. of China we we less – the supplying out that demand a impact seeing were other chip to help. the thing the returned normal were their fully be are that made them we export then itself, reduced when the that And competitive – solutions out the some shortage the The resolves have other cost in freight logistics in the that products into some China and for of automotive rates will so is providing or

we’ve sales depressed wellness been and So in of that’s our headwind. China. a customers bath of wellness into seen And bit – some a

the spike and material to that we us saw in that rate. run get factors two So back those raw are energy plus QX,

earnings you ABS Okay. in XXXX to And plastics, directionally terms say base how secondly, would would that prices, and you polycarbonate of in compared point XXXX?

forth would things so during back we And the up. between also Asia to, chain that’s And Texas, materials from affected and markets. that lower point that in where I lot that just those say on the earnings the blockage relaxation of XXXX. and a Europe it’s Yeah, constraints spike Suez saw occurred slightly prevented like XXXX, of supply the freeze really going than I

of So bit I early repeating was in current those spike two occurred itself in don’t forecasts, we think a the very healthy there an our in but we see earnings see demand. that end businesses year that

that’s I on So, two color you those give would the comment – materials.

Okay, thanks.

Your comes of of the Blair Holt. Matthew from next Tudor, Pickering, line question

Frank. are Hey, How good morning, you?

good. Very

I commentary hoping little Great. in you market bit a was more, the some seems could dynamics a PMMA little of discuss the bearish.

demand you’re levels, pricing. of about headwinds guess, raw with in would talking kind about or thinking say, where material agree maybe if Would that? elevated Just stack are Where PMMA autos at that you earnings you I peak would the – does from you and up? cycle, And mid-cycle?

a business, that solution – a allows really forward, So by don’t see I is, – but winning to a tell for what you and not it’s to And selling – you’re solution, really win by in a a all there’s cycle and platform. would where at bringing PMMA. dynamics, supply you demand customer you’re I that

some impacts our as would we don’t quarters, unusual that but characterize outlook in past the that think bearish. at occurred – all have do I So, not I two

give – more you this. what on let a fact, me In little color and bit

opportunities substitute blends, the PMMA ability PMMA PMMA, to or constructions. for with we our alternative materials of PMMA One big see is or

We we to huge and three metal stability I you proposition doing and a building coated the for that automotive replace and examples. can and applications, – very ability coated in replace that is in UV in fiberglass, construction We certain reinforced There’s area by laminates. are well also so would that demonstrated constructions bath the give PMMA transportation parts replace as can PMMA with also We’ve of of like type that the in appliance. and applications. exciting third and And replace in of demonstrated gel also application. applications, painting. constructions and glass painted wellness polyester because And coloring as and value

PMMA addressable total with we So our expand the the portfolio Trinseo. have market in ability to for

Like of it because And I’m a see I very prospects said, than So rather – like cyclical, I’m excited not truly bullish it don’t of the as because PMMA about commodity. at that. I secular a it’s solution all. –

capital XX%. next including Sounds your good. the forward commentary. And cash then I and about That’s around free year guidance, buybacks. think Based Dave, on both very M&A – flow be talked is going allocation think would as helpful you yield I midpoint

M&A you this And little that a so, at is would are or the how at it fair attractive buybacks to that? say standpoint, characterize – perhaps more than

done I and it obviously, I think divestiture. We’ve on time. way. I’d in lot, a a we’re don’t characterize two a look, divestiture another one mean, No, done and that of we’ve period thing, acquisitions short working

have a development from So a mean, I we going perspective, on the in company. lot corporate

to M&A somewhat we’ll of would constrained the divestiture that we’ll our in. And to still appetite the term. pipeline at immediate healthy of that’s We I immediate do we’re by mean, but against pipeline and term I that, to only to expect a some looking we and pipeline the look said do Having say, want is – come shareholders. the out at proceeds acquisitions. building return a that, have balance So, to in

is say necessarily the wouldn’t attractive than I So now. other that one more right

in full earlier, be Frank’s certain dips I more said advantage taking will market. be As at scaled, question buying we’ll where year the to our buyback

Thank Great. you.

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

acquisition mixed acquired, waste there? we economics you or how changes in business What’s secondly, you’re gamut investing will of think at does explosion either innovation keeping around thought Or in feedstock the about process what the recycling And of should the be a the it your margin? And of trends technology handling? the Good with it process up follow-up – morning. the want just to there? I consumer on is the or platform. how profitable full

what actually Yeah. built Trinseo. to network Hey, of to does Laurence. specialize important the The certain waste. Europe them streams – that across so that, in a frankly, is target collection built Heathland materials they allow are And

PMMA, polycarbonate, and ABS So some polystyrene.

stream not just they they’re important – do attractive. not to a this they of toward, an it then collection – that so waste separation it’s tremendous getting mixed why have and they’re So we a massive they’re see part is do, as them targeted more that such

Now, developing chemical from intellectual technology, as feedstocks. their they’re as standpoint, an property own IP on well for both capabilities those separation recycling

So for processes. are post-consumer at of they are them that other they targeted that the And – developing controlling reason and innovating, like polymers. we some same wastes are our that and significant time, toward streams new are they important post-industrial the at

you. Thank great. Okay,

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

thank Hi, morning, gentlemen, for and the taking question. good

appliances around wanted guess, polycarbonate end Just autos, whether have you’ve lot on, a about markets, had when mid-XXXX pretty circle curious, talked strong ABS, of like discussion to here. it’s and back commentary I perhaps it to resilient range. as or the – around plastics you well and been that And returning seems the or based polystyrene polystyrene

end, at think right robust now. seems cycles. market the kind end like products So are demand today they’ve of earning perhaps to spreads the it cycle, these be are been the higher throughout that as seemed remains we where But about

that profitability of from would cadence be? a you normalization, any what would do of the be So longer-term? about these how can And do if perspective? you kind businesses think see this Where

began me I saw the I them unique Yeah. value offers that to our attributes that in true like believe our value in for in in – believe market, profile XXXX And we ABS in the at certain XXXX, and ABS, proposition has the let late have Well, customers. separately. take unique each product say to I a do would margin reflects I and tight ABS applications. products have we it in of we early – understand the it we

polycarbonate is where product we’re the would the chain same now, lends excluding would some I a of a applications there with ABS say some of seeing compounds internally like the I solution we’re of itself unique supply focus reflective, early these is internally. I’ll And markets. goes in have that you, on. buying described into we getting XX% this, so is was in I that some margin remind in what anomalies, desperation the in we uniquely structural disruptions XXXX compounded our that about to say And polycarbonate, polycarbonate to

I again, half or So into should pretty believe than materials. impact portfolio and that’s business I done polystyrene – more is a and margin And half job. structural think going we appliance forward. that value-added expect again, that great we a Polystyrene, in our we’ve going the approximately markets high

plastic So, very have the we little exposure into side. packaging

to I value understood stable how value think specialized applications. and margins we’ve price we again, those So, those – relatively is more in those

should material growth substitution I proposition more we and value PMMA, funding in improve, the specialized as metal replacement like on or mentioned opportunities, profile continue think margin replacement. I as and the So fiberglass these

of very business, of the beyond as And think initiatives conversation we around that recycling sustainability, the undertaken kind Thank helpful. you. perhaps maybe going the the number kind arena. potential you’ve of a to of the are around portfolio divestiture That’s Styrenics back the about polystyrene

of about your a we to business where do think even the and for XXXX how offer PC polystyrene does PMMA, you divest So like within of target as your look others. seems that sustainability It business? Styrenics XX% does and once portfolio, lot

this Styrenics once So, compare, sustainability divest you how yeah, your us just how do help the metrics could business? or if understand your you

a I would plants for we include business feedstock would would We projects off-take remain certain separate. we the business said, so polystyrene. recycled of we we Downstream would those that expect would our customer expect the we after customer for of that remain, us. would target our XX% through would aggressive divestiture be we recycled But recycled Styrenics from the a as that’s that target. our like would to target an a Yeah, for businesses expect – that And exit, agreements chemically that that into be expect to also extent

you. Thank it. Appreciate

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

sitting in increases This that morning. I is that be a just pipeline? Bob. be take did in you there increase the additional had found? guys what initial identify question, likelihood mean, I many Harris of And still to Good synergy could. additional I synergies? could after for couple Mike if total steps How actually assessment to what’s the the

Yeah.

materials, and hadn’t identified, we And the doing we due had I Dave, pleased from would, for opportunities start what I’ll add whether And more growth bigger can probably identify can you we growth. brought we can on we buy you would work maybe it’s the buy logistics theoretically, that we and color. same things cost is, streams that’s is were would of basically where when expected, diligence. So that say as Dave once extremely are side, an I well were as together savings our asset, happened. vendors, you we, because what that opportunity What saw where give and and owned opportunities and in say than or different example, what classes more as opportunities much we both you functional on. an greater procurements always similar the obviously, you to there’s

metal fiberglass. quickly uses Aristech is – very replacing construction, ABS, For lot that going a example, materials, and our one of like laminate sells business you’re the our applications It’s or alternative applications is PMMA, products of this where key that into growing. into

its in was rate availability And but so propositions, growth limited a by – the ABS. of value tremendous at it

of PMMA the world and only our in we the we’re that the has that portfolio PMMA remind constructions. growth you, ABS producer I’ll both We rate with and see so in accelerate those can portfolio. their And ABS

those weren’t we due necessarily identified opportunities that So us during the used to teams the and that’s bringing together the diligence. product visible and

the impact cost Okay, And we perhaps then you great speaking some control sold, of cost be ERP rooms, color. get as you and savings, SG&A? if see of the in so, cost material Thanks. expecting an goods or upgrade plant of any that And savings? would implemented, something are

project I the a Hi, think Mike, software, we’re Dave. is this plant equipment. Yeah, that. I’ll more I is room of take where replacing unsupported mean, control

clearly, at we ERP, cost we that – will the savings we there. said be see project I significance yeah, of we there don’t the said $XX savings think least from of there’ll million when that So cost we won’t announced But originally, project.

XXXX sold finished of probably obviously, XXXX. in you’re goods project, And the versus in then realization cost most late after think full that SG&A. be would the timing seeing of and that of we I

perfect. for taking Okay, question. my Thanks

question last Your Duffy Fischer Barclays. comes line of from the of

Yeah. the this Good divestiture the styrenics, be guide would some from for forma your percent year morning. we’re any help divested? If midpoint can doing what after us you tax what with of that, would And fact? of work stranded that do back bring to costs remain it then And there need co does to be your anything we the are to pro rate?

to represents rough is that some give I guide of our this perimeter a range about feedstock this hi. Duffy, which Americas our morning. perimeter say you would in the the XX% third of segment, Good our about just polystyrene is I the that. of – ownership reiterate, transaction, of say, kind of That’s our This year to Dave. year third numbers, would transaction Styrenics. segment, the of a guidance and again,

mean, going I stranded relates through we’re that stranded be will costs, As cost. now. there it clearly, some exercise to

we’ll have As actions earlier, absorb that stranded that other I would said that acquisitions. portfolio cost to or we’ll other that or cost either address have

So I that… think

Tax rate.

rate… tax Oh,

it to On the company? tax rate rate, the does tax anything the do for

think don’t No. does. No, it I

in the done that migrating of possible process now of kind structure. the we’ve acquisitions We’re tax our into where

will it So divestiture is be a pre, similar low the I would think end, XXs. been tax – to company which rate in our our year, the this what I as think post for have

And over of that highest Okay. back cash. What’s generating cash quarter, get we a you’ll should this you period in, sheet not about you’re for the comfortable years? cash one goes through, lot kind for some a would of Obviously, the some last of sale holding, couple be one think if next level around just on cash. balance then that time of

with assets. we’ve don’t debenture you, they’re to haven’t – things utilized requires there. or that are requirements proceeds, Duffy, got some frankly, with be do covenants honest I for I we not debt in number other don’t they’re Yeah, think not if reinvested put out that – covenants to a like

work those the by the on And and money. redeploy utilizing I to So, proceeds constraint, earlier, that. is company in said integration internal, governed more our the resources frankly, as think, internal projects those I the

limiters any are a we than – that really of set So the more guardrails I would think arbitrarily. those

Thanks, Okay. guys.

Thank you.

Thank Thank call. conference you concludes today’s you. participating. This for

You disconnect. now may