Trinseo (Berwyn, Pennsylvania / USA; www.trinseo.com) slashed its 2018 outlook as the styrenics producer headed into a weaker fourth quarter after missing its own third-quarter targets. CEO Chris Pappas said he expected lower profitability in the October-December period due to declining styrene margins and adverse operating factors that hit the July-September margins.

Trinseo now sees 2018 net income at USD 348-356m (EUR 308-315m), representing a 6.0-8.5% improvement from 2017. Its previous estimate, however, was USD 393-410m. The company now projects adjusted EBITDA at USD 618-628m, down 3.1-4.6%. It was previously forecast at USD 665-685m.

The outlook for 2019 would be a stagnant adjusted EBITDA at best, with the guidance set in a range of USD 600-630m. Net income is pencilled in at USD 344-368m.

Third quarter net income more than doubled to USD 75m while adjusted EBITDA shrunk 13.9% to USD 143m. The targets were at USD 88-96m and USD 150-160m, respectively. Headwinds came from higher raw material costs, weakness in the automotive market and slowdown in China.

Among business segments, Performance Plastics, Feedstocks and Polystyrene experienced a quarterly decline in core profit. Revenues at Performance Plastics rose 11% to USD 401m due to higher sales volume and the pass through of increased raw material costs.