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

DSM planning North American nylon plant

July 22, 2014 11:41 am ET

Materials firm Royal DSM NV plans to build a new nylon resin plant in North America, but no decision has been made on the plant's exact location.    More

China launches investments in Belarus

July 21, 2014 10:10 am ET

China is preparing to invest in a major bottle grade PET production project planned by the Belarus PET and polyester fibers producer...    More

Image

Polynt, CCP create composite resins giant

July 18, 2014 10:13 am ET

France's Total SA has agreed to sell CCP Composites to Polynt Group SpA, based in Italy, for an undisclosed price.    More

Image

PET prices climb 2 cents

July 17, 2014 2:22 pm ET

After holding their ground in May, North American PET prices rebounded to show an average increase of 2 cents per pound in June.    More

Image

PolyOne closing 2 plants in Brazil

July 16, 2014 12:40 pm ET

Materials maker PolyOne Corp. is closing two of its four Brazilian plants in order to streamline operations and improve its financial performance in t...    More

Market Reports

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

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

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

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

More Events