By: CRAIN'S CLEVELAND BUSINESS
July 31, 2013
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.