Speciality materials provider Trinseo reported a first-quarter net loss of USD 79 million on Monday, despite restructuring efforts that boosted adjusted EBITDA by 44 percent compared to the same period last year.

The Pennsylvania-based company, which manufactures plastics, latex and rubber, saw its net loss widen slightly from USD 76 million a year earlier, weighed down by USD 25 million in refinancing costs from debt transactions completed in January.

Trinseo's quarterly revenue fell 13 percent to USD 785 million, as the company grapples with weak demand across all business segments and its strategic reduction of low-margin sales.

“Core business results in the first quarter were in line with expectations and sequentially higher due to prior quarter customer destocking and seasonality," said Frank Bozich, President and Chief Executive Officer of Trinseo. “Despite persistent market weakness, the first quarter was Trinseo’s 7th consecutive quarter of year-over-year Adjusted EBITDA improvement driven by the various management actions we took early in this industry downturn."

Adjusted EBITDA rose to USD 65 million from USD 45 million a year ago, bolstered by USD 26 million in polycarbonate technology licensing income and cost-cutting measures, though partially offset by lower volumes and reduced income from its Americas Styrenics joint venture.

Cash used in operations totalled USD 110 million, whilst capital expenditures reached USD 9 million, resulting in a negative free cash flow of USD 119 million. The company ended the quarter with USD 128 million in cash, of which USD 2 million was restricted, and total liquidity of USD 421 million.

Among its business segments, Engineered Materials recorded a 2 percent drop in sales to USD 278 million, yet saw adjusted EBITDA jump by USD 16 million to USD 26 million. Latex Binders sales declined 13 percent to USD 209 million, with adjusted EBITDA slipping USD 2 million to USD 24 million.

Polymer Solutions, despite a 22 percent sales decrease to USD 298 million, posted a USD 15 million increase in adjusted EBITDA to USD 44 million, benefiting from fixed cost reductions and licensing income. Americas Styrenics fell to a negative USD 2 million in adjusted EBITDA, down USD 8 million from the previous year.

Looking ahead, Trinseo forecasts a second-quarter net loss between USD 61 million and USD 46 million, with adjusted EBITDA ranging from USD 55 million to USD 70 million. The company expects approximately break-even free cash flow, which includes USD 21 million from polycarbonate technology license income.

The company has withdrawn its full-year guidance previously provided during its debt refinancing, citing high macroeconomic uncertainty limiting its ability to assess future end-market demand.

Bozich expressed confidence in the company's outlook, stating: "We anticipate Adjusted EBITDA of USD 55 million to USD 70 million in Q2 with seasonally higher volumes, lower costs in Engineered Materials, and improved AmSty performance offsetting the first quarter polycarbonate technology license income."

Trinseo expects limited direct impact from current tariffs, as it generally manufactures products and procures raw materials in the regions where they are sold.

Nokian Tyres Plc reported strong year-on-year sales growth of 14.2 percent  in the first quarter of 2025, with net sales reaching €269 million in comparable currency, reflecting solid performance across all regions. However, earnings were impacted by rising raw material costs and ramp-up expenses linked to new production facilities.

“We had strong sales growth in quarter one,” said President and CEO Paolo Pompei. “This is continuing our journey and strong sales growth that we had also in quarter four and quarter three last year.”

Segment EBITDA was reported at €12.25 million, or 4.6 percent  of net sales, while the segment operating profit stood at a loss of €18.5 million — a deterioration from the €15.1 million loss in Q1 2024. “Obviously, we are not fully satisfied actually with the financial performance, and we have accelerated actions to improve our financial performance in the next quarters,” Pompei added.

€800 Million Investment Phase Nears Completion

The Finnish tyre manufacturer is now in the final year of a three-year investment cycle totalling close to €800 million. “Two major investments to build on our new Nokian will be done by the end of this year,” said CFO Niko Haavisto. “We are returning back to the more maintenance type of investments... estimating that to be around €120 million starting next year.”

Key among those investments is the state-of-the-art Romanian factory, which began delivering tyres at the end of March and will ramp up through 2027. “I've been myself 28 years in the business. I can tell you that the investment we've made in Romania is really state-of-the-art... also a factory that is providing us the same flexibility... that we had in Russia,” said Pompei.

Meanwhile, the Dayton, U.S. plant is expected to reach 80 percent  capacity this year. “The land plot and the layout would allow us to triple the capacity there. However, it's not something that we are planning at this moment,” Haavisto said.

Margin Pressures from Raw Material and Tariff Impacts

Margins remain under pressure, largely due to input costs. “The decline was mainly driven by the higher raw materials, and obviously, the necessity as a cost to reinforce our market position in the growing market areas,” said Pompei. Price increases have already been implemented in Q1 and are expected to take effect from Q2 onwards. “We are expecting a positive development or pricing mix already starting from quarter two,” he added.

In North America, tariffs are a growing concern. “The tariffs, of course, are causing some disturbances and some uncertainties,” Pompei noted. “The effect of the tariff will be visible in quarter two. This will require... a lot of discipline from our side.”

Despite this, the CEO sees strategic upside: “The US market is today importing more than 50, actually 60 percent, of the tyres that are sold in the US. Obviously, for us, having a direct presence in Dayton can represent an extremely good element to play in the near future if the tariff remains there.”

Long-Term Outlook: Growth with Leaner Cost Structure

While the company posted a Q1 operating loss, executives remained firm on long-term financial targets: €2 billion in annual sales, a 15 percent  EBIT margin, and 23–25 percent  EBITDA margin. “Those are all intact, and that’s what we believe in,” said Haavisto.

Pompei summarised the strategic vision: “We want to play in the profitable niches of the market, which today are winter tyres... all-season... and heavy tyres as well. Those are extremely profitable niches.” He added, “We are a small player... and of course, we are still a small market player when we look at the global tyre market, which is approximately €250 billion. We have plenty of opportunities to grow.”

On capital structure, the company expects net debt — now around €800 million — to peak in Q3 before tapering off. Liquidity remains “on the safe side,” supported by a commercial paper programme and committed credit lines.

“We are working very hard, really, to deliver growth and at the same time to improve our financial position,” Pompei said. “We can really position Nokian Tyres growing above the market level with our unique value proposition — safe and sustainable, and high-performing products in demanding weather conditions.”

Goodyear Tire & Rubber Company has reported its first quarter 2025 results, showing progress in its transformation strategy despite mixed financial performance.

The tyre manufacturer posted net sales of USD 4.3 billion, with tyre unit volumes reaching 38.5 million. The company recorded a net income of USD 115 million (40 cents per share), compared to a net loss of USD 57 million (20 cents per share) in the same period last year.

However, after adjustments, Goodyear reported a net loss of USD 11 million, or 4 cents per share, contrasting with adjusted net income of USD 29 million, or 10 cents per share, in Q1 2024.

The quarter’s results included several significant items, notably an estimated USD 260 million gain from the sale of its Off-the-Road (OTR) tyre business, completed in February 2025. This was partially offset by USD 81 million in rationalisation charges and USD 7 million in costs related to the company’s Goodyear Forward transformation initiative.

Segment operating income totalled USD 195 million, representing a USD 52 million decline year-on-year. After adjusting for the OTR business sale, the decline was USD 40 million, which the company attributed primarily to higher raw material costs.

“Our team kicked off the year by delivering the strongest quarter to date in benefits from Goodyear Forward and advanced our goal of building a high-performance culture that is designed to win,” said Chief Executive Officer and President Mark Stewart. “With the sale of the Dunlop brand, we are further optimising our portfolio while strengthening our balance sheet – a critical component of our transformation plan. We remain committed to our targets, including segment operating margin of 10 percent and leverage of 2.0x-2.5x in the fourth quarter of this year.”

The company reported that its Goodyear Forward programme delivered USD 200 million in benefits during the quarter. However, these gains were more than offset by USD 113 million in unfavourable pricing versus raw material costs, USD 56 million in inflation, USD 33 million in lower tyre volume, USD 19 million in unabsorbed fixed costs, and USD 12 million in unfavourable foreign currency translation.

A delegation from WESTLAKE MARKETING (MALAYSIA) SDN. BHD. recently visited ZC Rubber’s headquarters at Hangzhou. The visit provided a chance to deepen the understanding of ZC Rubber's operations, technology and future direction while also strengthening the collaboration.

The visitors were given a tour of ZC Rubber's 5G Future Factory to demonstrate how technologies such as automation, real-time monitoring and smart logistics are integrated into daily operations to improve efficiency, product consistency and sustainability. During their tour of the ZC Rubber Showroom, the visitors learned about the company's whole product line, technological advancements, brand history and global expansion, demonstrating the company’s dedication to performance, safety and innovation. The guests also learned more about ZC Rubber's sustainability development and corporate social responsibility initiatives. In order to strengthen market cooperation, align growth goals and investigate new prospects for the Malaysian market, ZC Rubber organised a strategy conference following the tours.

Justin Cui, Asia Sales Director, said, “Malaysia is one of our key strategic markets in Southeast Asia. We highly value our partnership with WESTLAKE MARKETING (MALAYSIA) and look forward to working even more closely to deliver high-quality products and strong support to our local customers.”

The N Vision intelligent tyre from Maxxis has strengthened its resolve for innovation and sustainability by winning the gold A’ (A-Prime) Design award. The tyre was recognised in the Vehicle Parts, Auto Accessories and Care Products design category.

N Vision, which was created for the autonomous vehicles that are expected to be commercially available in 2030, makes use of information from several sensors to forecast tyre condition, vehicle load, speed and road conditions. By modifying the spokes' stretch and bending in response to such circumstances, it gives the tread area the best possible pre-compression or pre-tension. In the end, this lowers the cost of travel per mile. In order to maximise sustainability, N Vision was built using recycled materials made from fishing nets, tyres and PET bottles, as well as bio-based components made from rice husks and sunflower seeds. Tyre scrapping is decreased by its environmentally friendly design and materials, which also give customers an inexpensive, renewable travel choice.

A jury composed of 316 top designers, scholars and prominent members of the press selected the winners of the international A' Design Award competition, which recognises excellence in design in a wide range of fields, including transportation, hospitality, furniture, beauty and much more.