PolyOne Corp. has wrapped up an eventful year with higher earnings for shareholders.
On Jan. 28, Avon Lake, Ohio-based PolyOne reported 12 percent growth in adjusted earnings per share for full-year 2019. Full-year sales were flat at just under $2.9 billion, while profit from continuing operations was down almost 14 percent to $75.7 million.
But for PolyOne, one of North America's largest compounders, concentrate makers and resin distributors, 2019 will be remembered for two standout transactions: The sale of its Performance Products and Solutions unit and the purchase of Clariant AG's masterbatch concentrates business.
In August, PolyOne sold its PP&S unit — including Geon-brand PVC compounds — to private equity firm SK Capital Partners of New York for $775 million in cash. Part of that amount then was used in December to buy the Clariant business for $1.45 billion. That business has annual sales of around $1.15 billion.
In the Jan. 28 release, Chairman, President and CEO Robert Patterson described those deals as "two major steps forward in our specialty transformation."
"We embark on the new year with clear momentum and confidence in our ability to deliver double-digit adjusted EPS growth in 2020 and beyond," he added. "With a more specialty portfolio and less exposure to cyclical end markets, we believe our best days are ahead."
PolyOne's Specialty Engineered Materials unit performed well in 2019, with sales up more than 15 percent to almost $746 million and operating profit up more than 19 percent. The firm's Distribution unit saw full-year sales fall almost 6 percent to $1.19 billion, while operating profit grew almost 6 percent. For PolyOne's Color, Additives and Inks unit, sales for the year were down 4 percent to just over $1 billion, with operating profit down almost 7 percent.
PolyOne's stock price began 2019 around $32.40 and closed Dec. 31 near $36.80 for an increase of almost 12 percent. The price was at $35.70 in early trading Jan. 28.