PolyOne posts greatly improved second-quarter results

CRAIN'S CLEVELAND BUSINESS

Published: July 31, 2013 5:01 pm ET
Updated: July 31, 2013 5:05 pm ET

Related to this story

Topics Materials, Materials Suppliers
Companies & Associations PolyOne Corp.

PolyOne Corp. has reported greatly improved second-quarter results compared to a year earlier, with the sale of the company's non-core resin business giving its bottom line a big boost.

PolyOne said its net income from continuing operations more than doubled, to $38.3 million from $18.4 million in last year's second quarter. Net income from continuing operations on a per-share basis did not increase as much, rising to 39 cents from 20 cents, because of a 9 percent increase in average shares outstanding.

In the latest second quarter, PolyOne reported net income from discontinued operations of $142.3 million, thanks in large part to a pre-tax gain of $224 million on the sale of the resin business. In last year's second quarter, PolyOne had net income from discontinued operations of $6.2 million.

Net income at PolyOne climbed to $180.9 million, or $1.83 a share, from $24.6 million, or 27 cents a share, in the second quarter of 2012.

Sales at Avon Lake, Ohio-based PolyOne increased 37 percent, to $1.04 billion from $757 million.

In commenting on the results, PolyOne chairman, president and CEO Stephen D. Newlin said in a news release, "While each of our three strategic platforms improved operating income year over year, our specialty platform was once again our engine for growth.

"Mix improvement continues to be at the heart of our transformation story as we offer increasingly innovative products and solutions in specialty markets," Newlin said. "He said with the addition of Spartech Corp., "we have expanded our position in packaging, aerospace, security and other markets. During the second quarter, specialty contributed nearly two-thirds of our segment operating income."

Richard J. Diemer, senior vice president and chief financial officer, said the company ended the quarter with $392 million in cash thanks in part to proceeds from the sale of the resin business.

"Coupled with $310 million of availability under our asset-based revolver, we have more than ample liquidity to continue to drive innovation, pursue targeted M&A activity, fund share repurchases and provide incremental returns to shareholders via our quarterly dividend," Diemer said.

During the quarter, PolyOne bought 2.2 million common shares under its share repurchase program, bringing its total of repurchased shares to just under 3 million for the year.


Comments

PolyOne posts greatly improved second-quarter results

CRAIN'S CLEVELAND BUSINESS

Published: July 31, 2013 5:01 pm ET
Updated: July 31, 2013 5:05 pm ET

Post Your Comments


Back to story


More stories

Image

China's Zhongtai Chemical calls off large-scale PVC project

September 12, 2014 2:16 pm ET

Accepting the gloomy reality of the PVC market, Xinjiang Zhongtai Chemical Co. Ltd. has officially canceled a 800,000-ton PVC resin project and...    More

Image

Parx launches production of Saniconcentrates antibacterial polymers

September 12, 2014 11:11 am ET

Parx Plastics has achieved commercial production of its Saniconcentrates-brand line of antibacterial polymers.    More

Image

Germany's Lehmann & Voss buys U.S.-based Performance Compounding

September 12, 2014 11:36 am ET

German compounding firm Lehmann & Voss & Co. KG has acquired Performance Compounding LLC for an undisclosed price.    More

Image

PolyOne says its TPE won't irritate skin in wearable electronics

September 12, 2014 10:58 am ET

PolyOne Corp.'s GLS thermoplastic elastomers unit says its Versaflex CE 3620 compounds have met all ISO 10993-10:2010 testing requirements with no...    More

Image

Addivant resumes Trimene production

September 10, 2014 5:29 pm ET

Additives maker Addivant has resumed production of its Trimene Base-brand curing agent for natural and synthetic rubber compounds.    More

Market Reports

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

Upcoming Plastics News Events

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

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

More Events