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

Hedging can slow the resin rollercoaster

April 17, 2014 3:00 pm ET

The good old days — if they even ever existed — are gone, and.Andy VanPutte thinks volatility in the resin market is here to stay and...    More

Proposed Shell project draws more than 1,000 to informational meetings

April 17, 2014 2:03 pm ET

More than 1,000 people attended a pair of public meetings hosted by Shell Chemical LP on April 16 to discuss the possibility of building a major...    More

Spain's Cristian Lay Group buys two materials units of bankrupt LSB

April 17, 2014 11:11 am ET

Spanish industrial conglomerate Cristian Lay Group has purchased two of the bankrupt Spanish PET packaging group La Seda de Barcelona.    More

Indorama's purchase of Sasa to give wider access to multiple markets

April 16, 2014 10:07 am ET

PET maker Indorama Ventures Public Co. Ltd. is expanding in Turkey with the acquisition of a majority of Sasa Polyester Sanayi.    More

Axiall resumes operations at damaged Lake Charles PVC feedstock plant

April 15, 2014 4:41 pm ET

Axiall Corp. has resumed operations at its PVC feedstock plant that was damaged by a fire in December.
More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

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

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events