AVON LAKE, OHIO (Aug. 1, 12 p.m. ET) — PolyOne Corp. has reported lower second-quarter earnings despite higher sales compared to a year earlier as the company absorbed various one-time expenses in the latest second quarter.
The Avon Lake-based compounder and resin distributor said its net income in the quarter fell 14 percent, to $24.6 million, or 27 cents per diluted share, from $28.5 million, or 30 cents a share, in the second quarter of 2011. PolyOne said results in the latest second quarter included $8 million, or nine cents a share, in one-time expenses, the largest of which was $6.1 million to reduce costs in Europe.
Sales at PolyOne rose 3 percent, to $792.0 million from $768.8 million. Selling and administrative expenses climbed 29 percent, to $101.6 million from $78.7 million, while interest expenses increased 48 percent, to $12.4 million from $8.4 million.
“I am very pleased with our second-quarter results, as each of our three strategic platforms reported both operating margin expansion and operating income growth," Stephen Newlin, chairman, president and CEO, said in a statement. "We overcame weakness in European demand to deliver record quarterly adjusted earnings per share, due primarily to accretion from the ColorMatrix acquisition and margin expansion in North America and Asia. Our progress in Asia continues to accelerate, having strengthened our commercial leadership in the region in 2011. Even if China's economy slows in the quarters ahead, we expect to register solid results due to new business gains."