Kraton Corporation, a leading global producer of styrenic block copolymers, specialty polymers and high-value performance products derived from pine wood pulping co-products, recently announced financial results for the quarter ended March 31, 2017. Compared to the first quarter 2016, Chemical segment sales volumes increased 15% and Polymer segment sales volumes increased 2%. Chemical segment margins for the first quarter 2017 reflect ongoing market pressures related to hydrocarbon-based C5 alternatives and competitive conditions for TOFA and TOR products. Polymer segment raw material costs increased significantly in the first quarter 2017. Polymer segment margins were adversely impacted in the quarter as expected, reflecting the timing lag in realization of announced price increases and, to a lesser extent, continued competitive market conditions for SIS product grades. "On a consolidated basis, first quarter 2017 Adjusted EBITDA was $65.6 million. As expected, during the quarter we saw unprecedented increases in raw material costs for our Polymer segment and, as a result, our Adjusted EBITDA was negatively impacted by the lag in realization of price increases. While we expect the full realization of price increases implemented to address the increase in raw material costs to be completed in the second quarter 2017, the raw material cost trend itself has also reversed as we move into the second quarter of the year. As we have pointed out previously, we continue to see competitive conditions for SIS polymer grades in our Performance Products business. For our Chemical segment, we are encouraged by the 15% increase in sales volume compared to the first quarter 2016. However, segment margins continue to be adversely impacted by availability of low-cost C5 hydrocarbon alternatives, and pricing pressure for TOFA and TOR products in general. Regarding TOFA markets specifically, we implemented a global price increase of $120 per metric ton effective March 15th, reflecting an improving demand outlook for TOFA and, to a lesser extent, cost increases for CTO raw materials," said Kevin M. Fogarty, Kraton's President and Chief Executive Officer. "Strategically, we continue to make progress on our cost reduction and transaction synergy value realization initiatives. In the first quarter we delivered an incremental $13 million on top of the cumulative $68 million realized through year-end 2016. We expect that for the balance of 2017 we will deliver an additional $27million in cost reductions towards our 2018 target of $135 million. In addition, during the first quarter we took steps to further refine our capital structure. In early January we repriced our Term Loan Facility, reducing the interest cost for amounts outstanding under the facility by 100 basis points, and in late March, we issued $400 million of 7.0% Senior Notes, using the proceeds to reduce borrowings under the Term Loan Facility. This issuance resulted in a more appropriate balance between secured and unsecured components of our outstanding debt, and effectively eliminated all scheduled amortization payments under the Term Loan Facility, enhancing financial flexibility," Fogarty added. For more information, please visit the official website of Kraton.