Trinseo S.A.​ (TSE) has reported a 29.20 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $67.25 million, or $1.43 a share in the quarter, compared with $52.06 million, or $1.06 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $79.80 million, or $1.70 a share compared with $52.30 million or $1.07 a share, a year ago.

Revenue during the quarter dropped 9 percent to $935.41 million from $1,027.95 million in the previous year period. Gross margin for the quarter expanded 415 basis points over the previous year period to 15.01 percent. Total expenses were 88.97 percent of quarterly revenues, down from 90.86 percent for the same period last year. This has led to an improvement of 189 basis points in operating margin to 11.03 percent.

Operating income for the quarter was $103.17 million, compared with $93.96 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $143.30 million compared with $116.20 million in the prior year period. At the same time, adjusted EBITDA margin improved 402 basis points in the quarter to 15.32 percent from 11.30 percent in the last year period.

Commenting on the Company's performance, Chris Pappas, Trinseo president and chief executive officer, said, "Our third quarter results were essentially as expected with the exception of styrene margin, which was down slightly from our prior expectations. We continue to see steady performance in our Performance Materials division and overall a higher level of performance in our Basic Plastics & Feedstocks division, even with a reduced contribution from styrene monomer in the currently low turnaround season." Pappas continued, "We had very strong cash generation during the quarter, and we continue to return capital to shareholders via our quarterly cash distribution as well as share buybacks. In addition, we recently received authorization to repurchase the remaining availability (approximately 2.7 million shares) under the 4.5 million share repurchase authorization received from shareholders earlier this year. We remain committed to these initiatives as we view them as an important part of total shareholder return."

For fiscal year 2016, Trinseo S.A. expects net income to be in the range of $295 million to $303 million. The company forecasts diluted earnings per share to be in the range of $6.22 to $6.39. It forecasts diluted earnings per share to be in the range of $6.84 to $7.01 on adjusted basis.

For the fourth-quarter 2016, Trinseo S.A. expects net income to be in the range of $54 million to $62 million. The company forecasts diluted earnings per share to be in the range of $1.19 to $1.36. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $1.19 to $1.36.

The company has spent $77.70 million cash to meet investing activities during the nine month period as against cash outgo of $76.62 million in the last year period.

The company has spent $211.75 million cash to carry out financing activities during the nine month period as against cash outgo of $24.11 million in the last year period.

Cash and cash equivalents stood at $466.29 million as on Sep. 30, 2016, up 45.36 percent or $145.52 million from $320.77 million on Sep. 30, 2015.

Working capital increases

Trinseo S.A. has recorded an increase in the working capital over the last year. It stood at $898.55 million as at Sep. 30, 2016, up 11.96 percent or $95.97 million from $802.58 million on Sep. 30, 2015. Current ratio was at 2.82 as on Sep. 30, 2016, up from 2.64 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 55 days for the last year period. Days sales outstanding went up to 55 days for the quarter compared with 52 days for the same period last year.

Days inventory outstanding has decreased to 22 days for the quarter compared with 40 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 37 for the same period last year.