Company News

March 30, 2020

BASF to Shutter Smaller TDI Unit in April

Europe toluene, MX sink past 14-year lows on crude coronavirus flop, weaker demand

Author: Vicky Ellis

2020/03/30

LONDON (ICIS)–European toluene and mixed xylenes (MX) spot prices crashed to 14- and 15-year lows last week, dragged by Eurobob gasoline dropping well below $200/tonne as coronavirus travel restrictions weakened petrol use and crude oil demand.

On Friday (27 march), the International Energy Agency (IEA)  forecast crude demand could fall as much as 20% over the coming months due to coronavirus.

Values for the sister products toluene and MX remain well below lows hit during the 2008 slump – and the lowest since the toluene and MX’s assessments began in 2006 and 2005, respectively.

Toluene was also pressured by a well-supplied market set to become lengthier, prompting premiums over gasoline to plunge in some instances, assessed at $60-110/tonne.

MX fared slightly differently, with supply slightly harder to find, which supported premiums over gasoline up to around $100-110/tonne.

TRUCK MARKET QUIET
European truck prices are mainly stable for the time being, with suppliers due to share new monthly prices in the week to come.

Trucks have been below €600/tonne in cases or slightly above on a delivered basis in others. On a FCA (free carrier) basis, they are at the mid-€500s/tonne.

Truck activity remains quiet as the distribution market fields enquiries for other products, such as isopropanol (IPA) and ethanol due to rising demand for hand sanitizer.

GLOBAL TRADE: DIFFICULT
Volatility in upstream pricing is challenging for traders checking global arbitrages daily for potential openings.

US arbitrage appears closed for toluene, limiting any outflows from Europe other than a possible structural or internal move for one producer, trading feedback suggests.

Asia is also not pulling either, despite being a high-priced region, since it should be well-catered to by local stocks.

Lengthy supply for toluene is a possibility for April as stable-to-soft chemical demand amid the uncertain economic environment could be amplified by the closure of BASF’s smaller toluene diisocyanate (TDI) plant in April, which could free up toluene in the German market.

Bulk prices for toluene dropped to $205-315/tonne and MX was down to $245-315/tonne, with these weekly ranges to Friday 27 March both on a FOB (free on board) Rotterdam basis.

–

The main chemical use of toluene is to make benzene and xylenes. The product is also used as a solvent in paint thinners, nail polish remover and in the manufacturing of nylon and plastic bottles.

MX is a feedstock for paraxylene (PX) and orthoxylene (OX) production, while the solvent grade is a raw material for dye, organic pigment, perfume and medicines, as well as a general solvent for paint and agricultural pesticides.

Front page picture: Planes grounded at Frankfurt airport; the European aviation industry has come to standstill amid travel restrictions
Source: Thorsten Wagner/EPA-EFE/Shutterstock 

https://www.icis.com/explore/resources/news/2020/03/30/10487995/europe-toluene-mx-sink-past-14-year-lows-on-crude-coronavirus-flop-weaker-demand

March 27, 2020

Tempur Sealy Statement

Tempur Sealy Market Update

|PR Newswire|About: TPX

– Elected to Access $200 Million on its Revolving Senior Secured Credit Facility

– Withdraws 2020 Financial Guidance

– Adopts Limited Duration Shareholder Rights Plan

– Scott Thompson, Chairman and CEO, Extends Employment Contract

PR NewswireLEXINGTON, Ky., March 27, 2020 /PRNewswire/ — At Tempur Sealy International, Inc. (TPX) the health and safety of employees, customers, and all business partners is the utmost concern. The Company has taken and continues to take precautionary measures to mitigate health risks during the evolving situation resulting from the novel coronavirus (“COVID-19”).

Scott Thompson, Tempur Sealy International Inc. Chairman and CEO said, “We have implemented measures to protect the health and safety of our employees, including restricting travel and face-to-face meetings, allowing individuals to work from home where possible, and adopting all region-specific public health protocols applicable to our operations around the world. While providing a healthy and safe work environment is our top priority during these unprecedented times, our entire organization is also focused on our commitments to our customers, suppliers, and shareholders. We are also working with various government and healthcare organizations to provide products and services in this time of crisis. For more than a decade, Tempur Sealy has donated tens of thousands of mattresses annually to charities and organizations in need across the country. For the immediate future, we are focusing all of the power of our philanthropic efforts on getting our products to governments, healthcare organizations and charities that have a need related to the pandemic.”

“Prior to the global COVID-19 health concerns, our iconic brands and products had been performing very well throughout the world. We had been experiencing growth in all markets and especially strong growth in North America, with over 30 percent growth compared to the first quarter of 2019. Most recent trends have shown very weak demand in the U.S. and Europe, with orders down over 50 percent versus the same period in the prior year. Following the slowdown in activity from the COVID-19, we have recently been experiencing improving trends in Asian markets with year-over-year growth in Korea, Japan, and Singapore and improving sequential growth in China. Based on the most current trends and current information, we are estimating the consolidated first quarter 2020 net sales to increase approximately 15 to 20 percent year-over-year.”

“Our business model has a highly variable cost structure, is broadly distributed geographically and is supported by an omni-channel approach. We will carry our strong operating momentum going into this downturn. We expect near-term profits to be significantly impacted but see our long-term competitive position strengthening through the downturn,” continued Thompson.

The Company also announced the actions to mitigate the near-term impact of the material slowdown in business activity while positioning the Company for the recovery period. The Company ceased all share repurchase activity once U.S. orders became negative as compared to the prior year, delayed certain capital projects, and canceled or suspended non-critical projects. Due to the rapidly-changing nature of this environment, the Company is withdrawing its previously-issued full-year financial guidance and will not provide updated full-year financial guidance until the operating environment becomes clear.

Additionally, to provide greater financial flexibility in response to the continued impact of COVID-19, the Company elected to hold $200 million of cash by borrowing on its revolving senior secured credit facility. Total remaining availability under that facility is at least $100 million and is drawable. The Company has no major loan maturities until 2023 and its senior secured credit facility matures in 2024.

https://seekingalpha.com/pr/17821143-tempur-sealy-market-update

March 27, 2020

Tempur Sealy Statement

Tempur Sealy Market Update

|PR Newswire|About: TPX

– Elected to Access $200 Million on its Revolving Senior Secured Credit Facility

– Withdraws 2020 Financial Guidance

– Adopts Limited Duration Shareholder Rights Plan

– Scott Thompson, Chairman and CEO, Extends Employment Contract

PR NewswireLEXINGTON, Ky., March 27, 2020 /PRNewswire/ — At Tempur Sealy International, Inc. (TPX) the health and safety of employees, customers, and all business partners is the utmost concern. The Company has taken and continues to take precautionary measures to mitigate health risks during the evolving situation resulting from the novel coronavirus (“COVID-19”).

Scott Thompson, Tempur Sealy International Inc. Chairman and CEO said, “We have implemented measures to protect the health and safety of our employees, including restricting travel and face-to-face meetings, allowing individuals to work from home where possible, and adopting all region-specific public health protocols applicable to our operations around the world. While providing a healthy and safe work environment is our top priority during these unprecedented times, our entire organization is also focused on our commitments to our customers, suppliers, and shareholders. We are also working with various government and healthcare organizations to provide products and services in this time of crisis. For more than a decade, Tempur Sealy has donated tens of thousands of mattresses annually to charities and organizations in need across the country. For the immediate future, we are focusing all of the power of our philanthropic efforts on getting our products to governments, healthcare organizations and charities that have a need related to the pandemic.”

“Prior to the global COVID-19 health concerns, our iconic brands and products had been performing very well throughout the world. We had been experiencing growth in all markets and especially strong growth in North America, with over 30 percent growth compared to the first quarter of 2019. Most recent trends have shown very weak demand in the U.S. and Europe, with orders down over 50 percent versus the same period in the prior year. Following the slowdown in activity from the COVID-19, we have recently been experiencing improving trends in Asian markets with year-over-year growth in Korea, Japan, and Singapore and improving sequential growth in China. Based on the most current trends and current information, we are estimating the consolidated first quarter 2020 net sales to increase approximately 15 to 20 percent year-over-year.”

“Our business model has a highly variable cost structure, is broadly distributed geographically and is supported by an omni-channel approach. We will carry our strong operating momentum going into this downturn. We expect near-term profits to be significantly impacted but see our long-term competitive position strengthening through the downturn,” continued Thompson.

The Company also announced the actions to mitigate the near-term impact of the material slowdown in business activity while positioning the Company for the recovery period. The Company ceased all share repurchase activity once U.S. orders became negative as compared to the prior year, delayed certain capital projects, and canceled or suspended non-critical projects. Due to the rapidly-changing nature of this environment, the Company is withdrawing its previously-issued full-year financial guidance and will not provide updated full-year financial guidance until the operating environment becomes clear.

Additionally, to provide greater financial flexibility in response to the continued impact of COVID-19, the Company elected to hold $200 million of cash by borrowing on its revolving senior secured credit facility. Total remaining availability under that facility is at least $100 million and is drawable. The Company has no major loan maturities until 2023 and its senior secured credit facility matures in 2024.

https://seekingalpha.com/pr/17821143-tempur-sealy-market-update

March 27, 2020

Recticel Statement

Recticel
Press Release of Recticel – 27 March 2020
Priority given to ensuring safe working conditions and preserving Group liquidity
 

In response to the COVID-19 outbreak our first concern has been to take all necessary precautionary measures to keep our employees healthy and ensuring a safe workplace. Recticel has implemented strict behavioral and precautionary measures, in line with the recommendations issued by the governments of the countries in which it operates and by the World Health Organization, in order to minimize contamination risks.

 

COVID-19 impact on Recticel operations

While our Automotive activities in China are progressively returning to pre COVID-19 levels, our Automotive activities in Europe are temporarily shut down as most European OEMs have shut their assembly plants. In the other business segments, customer demand has been rapidly decreasing in line with the lockdowns declared in the countries where we operate. As a consequence, we have adapted our production levels to match demand, either by curtailing production or by temporarily shutting down production sites.

 

Temporary unemployment is being implemented to the maximum extent where applicable. Top management remuneration is temporarily reduced by 30% as a token of solidarity.

 

In response to this unprecedented environment, capital expenditure is reduced to the minimum, and all non-essential projects have been put on hold.

 

Liquidity

The Group liquidity is ensured by the available credit facilities, with a headroom of more than EUR 150 million drawable at short notice under our Group Syndicated Credit Facility, our bilateral credit lines and our factoring program.

 

Withdrawal of full-year 2020 outlook provided on 28 February 2020

Given the highly uncertain and rapidly changing situation, and despite a performance in line with our previous guidance until mid-March 2020, we withdraw the guidance given on 28 February 2020 of a full year 2020 Adjusted EBITDA increase.

 

Recticel is monitoring the situation closely and will continue to respond as required to help safeguard its workers and employees, while adjusting its operations and preserving its cashflows.

 

Olivier Chapelle (CEO): “Our number one priority is the health and wellbeing of all our employees. As the pandemic is causing extra-ordinary challenges to all of us, we are taking all necessary

precautionary measures to protect our employees and our business, and I remain confident that we shall overcome today’s crisis without compromising our long-term strategy of sustainable

development. Finally, I want to express my deep respect and gratitude to our very dedicated employees as well as to everybody fighting the effects of this pandemic.”

 

March 27, 2020

Recticel Statement

Recticel
Press Release of Recticel – 27 March 2020
Priority given to ensuring safe working conditions and preserving Group liquidity
 

In response to the COVID-19 outbreak our first concern has been to take all necessary precautionary measures to keep our employees healthy and ensuring a safe workplace. Recticel has implemented strict behavioral and precautionary measures, in line with the recommendations issued by the governments of the countries in which it operates and by the World Health Organization, in order to minimize contamination risks.

 

COVID-19 impact on Recticel operations

While our Automotive activities in China are progressively returning to pre COVID-19 levels, our Automotive activities in Europe are temporarily shut down as most European OEMs have shut their assembly plants. In the other business segments, customer demand has been rapidly decreasing in line with the lockdowns declared in the countries where we operate. As a consequence, we have adapted our production levels to match demand, either by curtailing production or by temporarily shutting down production sites.

 

Temporary unemployment is being implemented to the maximum extent where applicable. Top management remuneration is temporarily reduced by 30% as a token of solidarity.

 

In response to this unprecedented environment, capital expenditure is reduced to the minimum, and all non-essential projects have been put on hold.

 

Liquidity

The Group liquidity is ensured by the available credit facilities, with a headroom of more than EUR 150 million drawable at short notice under our Group Syndicated Credit Facility, our bilateral credit lines and our factoring program.

 

Withdrawal of full-year 2020 outlook provided on 28 February 2020

Given the highly uncertain and rapidly changing situation, and despite a performance in line with our previous guidance until mid-March 2020, we withdraw the guidance given on 28 February 2020 of a full year 2020 Adjusted EBITDA increase.

 

Recticel is monitoring the situation closely and will continue to respond as required to help safeguard its workers and employees, while adjusting its operations and preserving its cashflows.

 

Olivier Chapelle (CEO): “Our number one priority is the health and wellbeing of all our employees. As the pandemic is causing extra-ordinary challenges to all of us, we are taking all necessary

precautionary measures to protect our employees and our business, and I remain confident that we shall overcome today’s crisis without compromising our long-term strategy of sustainable

development. Finally, I want to express my deep respect and gratitude to our very dedicated employees as well as to everybody fighting the effects of this pandemic.”