Styron LLC, a global plastics and rubber materials company, has released its annual financial results for 2013 showing a 3 percent drop in sales revenue from $5.5 billion in 2012 to $5.3 billion.
Styron, which was part of Dow Chemical Co. until its 2010 purchase by Bain Capital Partners, attributes the drop in sales volume primarily to its styrenics segment.
The styrenics had to increase the cost of its polystyrene products due to price increases of its styrene monomer feedstock. The company also said lower demand for latex in Asia and Europe was a factor.
Styrenics revenue of $530 million for the fourth quarter of 2013 was 2 percent below the prior year including a 1 percent reduction due to the divestiture of the expandable polystyrene business.
The engineered polymers segment saw a 4 percent climb for the fourth quarter, to $260 million, compared to 2012. The company said that was due to higher volume in this segment, with more sales to the automotive and building and construction markets.
Styron reports adjusted earnings before taxes and depreciation of $303 million for 2013, up 4 percent on the previous year.
Chris Pappas president and CEO of Styron LLC, said: “We are cautiously optimistic that we can deliver higher adjusted EBITDA in 2014 as compared to 2013.
“While we believe we will not see a repeat of the record styrene margin levels of the second half of 2013, we look to more than make up for that with improved performance particularly in synthetic rubber, with a stronger tire market … and in engineered polymers, with an improving polycarbonate market and continued wins with our differentiated offerings in the automotive, medical, and other markets.”
Styron has 19 manufacturing sites worldwide and approximately 2,100 employees.