Berwyn-based Trinseo recently had two years of share-price gains wiped out after issuing a warning of a $16 million profit shortfall for the third quarter caused by “falling auto sales and global-trade uncertainty,” writes Joseph DiStefano for the Philadelphia Inquirer.

Shares of the plastic, rubber, and polystyrene manufacturer dropped 20 percent, making it the latest domestic manufacturer with factories or customers in China to fall sharply.

The company said that third-quarter net income is now projected at between $74 million and $80 million, significantly less than the originally estimated $88 million to $96 million.

Among the factors contributing to the reduction is a $9 million fall in operating profits from weak auto sales, lower customer demand from global trade dynamics, and slow orders from industrial customers anticipating a drop in the cost of raw materials.

Trinseo also said it would cost an additional $6 million to bring its outsourced administrative services back in-house.

“Weakness in the automotive and tire markets, as well as the slowdown in China, will impact our future results,” the company said.

Read more about Trinseo in the Philadelphia Inquirer here.

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