Trinseo S.A. (TSE) has reported a 52.83 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $117.29 million, or $2.59 a share in the quarter, compared with $76.75 million, or $1.56 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $109.80 million, or $2.42 a share compared with $79.30 million or $1.62 a share, a year ago.

Revenue during the quarter grew 23.53 percent to $1,104.49 million from $894.08 million in the previous year period. Gross margin for the quarter expanded 229 basis points over the previous year period to 17.91 percent. Total expenses were 85.82 percent of quarterly revenues, down from 86.55 percent for the same period last year. This has led to an improvement of 74 basis points in operating margin to 14.18 percent.

Operating income for the quarter was $156.66 million, compared with $120.21 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $181.70 million compared with $143.20 million in the prior year period. At the same time, adjusted EBITDA margin improved 43 basis points in the quarter to 16.45 percent from 16.02 percent in the last year period.

Commenting on the Company's performance, Chris Pappas, Trinseo president and chief executive officer, said, "We continue to see strong fundamental business conditions, and our first quarter net income and Adjusted EBITDA were higher than our previous guidance. We are making excellent progress on our Performance Materials growth initiatives as reflected in our results this quarter. Latex Binders is improving via higher margins and cost actions. Synthetic Rubber and Performance Plastics remain strong as well. Our SSBR expansion and pilot plant, new ABS capacity in China, as well as new application growth are on schedule and the Performance Materials division is on track to meet or exceed the 2016 to 2019 growth target we outlined at our recent Investor Day."

For the second-quarter 2017, Trinseo S.A. forecasts net income to be in the range of $78 million to $86 million and projects adjusted net income to be in the range of $78 million to $86 million. The company projects diluted earnings per share to be in the range of $1.71 to $1.89. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.71 to $1.89.

For fiscal year 2017, Trinseo S.A. forecasts net income to be in the range of $337 million to $353 million and projects adjusted net income to be in the range of $329 million to $345 million. The company projects diluted earnings per share to be in the range of $7.43 to $7.78 and projects diluted earnings per share to be in the range of $7.26 to $7.61 on adjusted basis.

Cash flow from investing activities was $6.91 million for the quarter as against cash outgo of $21.63 million in the last year period.

The company has spent $38.01 million cash to carry out financing activities during the quarter as against cash outgo of $58.32 million in the last year period.

Cash and cash equivalents stood at $410.14 million as on Mar. 31, 2017, down 6.44 percent or $28.25 million from $438.39 million on Mar. 31, 2016.

Working capital increases

Trinseo S.A. has recorded an increase in the working capital over the last year. It stood at $1,022.68 million as at Mar. 31, 2017, up 15.08 percent or $133.99 million from $888.69 million on Mar. 31, 2016. Current ratio was at 2.75 as on Mar. 31, 2017, down from 2.91 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 52 days for the quarter from 75 days for the last year period. Days sales outstanding went down to 49 days for the quarter compared with 52 days for the same period last year.

Days inventory outstanding has decreased to 24 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding was almost stable at 21 days for the quarter, when compared with the previous year period.