NEW YORK (May 30, 4:05 p.m. ET) — North American compounding leader PolyOne Corp. recently announced aggressive financial targets that it plans to hit by 2015.
The Avon Lake, Ohio-based firm expects to have sales of $5 billion and adjusted earnings per share of at least $2.50 by 2015, officials said at PolyOne's Investor Day, May 16 in New York.
The sales goal is more than 70 percent higher than the $2.9 billion total posted by PolyOne last year. The adjusted earnings-per-share target is more than double last year's $1.02.
“Having nearly met or exceeded each of the long-term goals we established in 2006, we're now elevating our expectations even higher,” Chairman, President and CEO Stephen Newlin said in a news release.
“Our ability to innovate and provide exceptional customer service has fueled our transformation thus far,” Newlin added. “Those same qualities will be what drive us to achieve our new goals as well.”
As part of its Investor Day, PolyOne's senior leadership reviewed key operating and financial performance milestones it is targeting to achieve by 2015, including ranges for operating income as a percentage of sales for each of the company's business platforms.
On the new-product front, PolyOne recently has added to its offerings in health care and antimicrobials.
PolyOne Distribution also now is offering Cariflex-brand polyisoprene rubber from Kraton Performance Polymers Inc. of Houston. Cariflex is “an ideal alternative” to natural rubber in health-care applications that need high quality, sealability and puncture resistance. These applications include medical stoppers, surgical gloves and catheters.
PolyOne also has commercialized Smartbatch HC-brand concentrates for use in medical-device housings, chair rails, catheters and similar applications. The new concentrates use the firm's WithStand-brand antimicrobial technology. The materials can provide antimicrobial properties and colorants in a single product, officials said.
In the first quarter of 2012, PolyOne posted sales of $781 million — the highest total in the firm's 12-year history and an increase of almost 9 percent vs. the year-ago period. PolyOne's profit, however, tumbled more than 80 percent to $20 million in the same comparison, due in part to a weakening European economy.
The firm's first-quarter sales increase included a 6 percent jump in distribution sales, which totaled $263 million. That unit's operating income also jumped 13 percent to almost $17 million in the first quarter.
On Wall Street, PolyOne's per-share stock price started the year around $12 and was near $13 in late trading May 30 — an increase of more than 8 percent.