Annual sales up 5 percent at PolyOne

Published: January 30, 2013 1:08 pm ET
Updated: January 30, 2013 1:12 pm ET

Related to this story

Topics Materials, Materials Suppliers, Compounding
Companies & Associations PolyOne Corp.

AVON LAKE, OHIO -- PolyOne Corp. has wrapped up a 2012 year in which the top compounder and resin distributor saw sales rise almost 5 percent and operating income hit record levels in three of its business units.

Sales at Avon Lake, Ohio-based PolyOne hit $2.99 billion in 2012, up 4.5 percent vs. 2011. Overall profit, however, slipped almost 60 percent to just under $72 million. Full-year profit was affected by several special items - including pension costs - that were recorded in the fourth quarter, officials said in a Jan. 29 news release.

"The fourth quarter caps another strong year of performance by PolyOne," Chairman, President and CEO Stephen Newlin said in the release. "In 2013, we are targeting double-digit expansion of adjusted earnings per share."

Record fourth-quarter earnings were achieved even as PolyOne's corporate tax rate increased from less than 31 percent in the fourth quarter of 2011 to more than 39 percent in the same quarter of 2012. The tax increase was the result of a change in the firm's regional earnings mix, according to senior vice president and chief financial officer Richard Diemer Jr.

Newlin also highlighted three major moves made by PolyOne in 2012: the integration of ColorMatrix Group (purchased for $486 million in 2011), the agreement to buy plastic sheet maker and compounder Spartech Corp. for almost $400 million and the $34 million purchase of Glasforms, a maker of reinforced polymers and advanced composites.

Among individual businesses, PolyOne in 2012 saw operating income gains across the board. Operating income in the firm's Specialty Platform - including global specialty engineered materials and global color, additives and inks - operating income was up almost 27 percent to almost $114 million, while sales grew more than 11 percent to almost $1.25 billion. Both of those totals were boosted by the integration of ColorMatrix.

Operating income in performance products and solutions - including PolyOne's market-leading PVC compounds business - grew 20 percent to almost $75 million, even as the unit's sales slipped 3 percent to $837 million.

For PolyOne's resin distribution unit, operating income improved almost 18 percent to $66 million as sales moved up 3 percent to $1.03 billion.

PolyOne's per-share stock price also has enjoyed a strong run on Wall Street in recent months. The per-share price was under $14 in mid-2012 but was just under $23 in early trading Jan. 30. The firm ranks as North America's largest compounder and concentrate maker and as one of its largest resin distributors.


Comments

Annual sales up 5 percent at PolyOne

Published: January 30, 2013 1:08 pm ET
Updated: January 30, 2013 1:12 pm ET

Post Your Comments


Back to story


More stories

Image

New Hexcel plant will supply carbon fiber for Airbus A350 XWB

September 30, 2014 2:43 pm ET

Hexcel Corp. is investing $250 million on a new carbon fiber plant in France, with part of the production going into the future Airbus SAS A350 XWB.    More

Image

LyondellBasell CEO Gallogly to retire

September 30, 2014 3:00 pm ET

James Gallogly, CEO of Houston-based polyolefins producer LyondellBasell Industries NV, on Sept. 29 announced plans to retire in 2015.    More

Image

Asahi Kasei breaks ground on Alabama compounding plant

September 29, 2014 5:39 pm ET

Asahi Kasei Plastics North America will be able to solve two problems at once with a new compounding plant in Athens, Ala.    More

Image

DuPont shifting Teflon production in China

September 29, 2014 2:35 pm ET

DuPont Co. will spend more than $15 million to improve its fluoropolymer product offerings in China.    More

Image

Sale of PVC maker Oltchim still in limbo

September 29, 2014 10:25 am ET

Fresh attempts to privatize insolvent Romanian PVC producer Oltchim SA have met with new obstacles as the European Union questioned the Romanian gover...    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events