PolyOne Corporation (NYSE: POL) reported its third quarter results for 2019, which reflect PP&S as a discontinued operation.
GAAP earnings per share from continuing operations were $0.30 in the third quarter of 2019 compared to $0.40 in the third quarter of 2018. Adjusted earnings per share from continuing operations increased 7% to $0.44 in the third quarter of 2019 compared to $0.41 for the third quarter of 2018.
„Our investments in sustainable solutions combined with our initiatives to control costs, are helping to offset weak demand across many end markets,“ said Robert M. Patterson, Chairman, President and Chief Executive Officer, PolyOne Corporation. „Most notably, sales of composite technologies organically increased 8% over the prior year, and additives into the packaging market increased 3%.“
The company noted ongoing weakness in demand, especially in Europe, which impacted both the SEM and Color segments. North America also softened in the third quarter primarily related to lower demand for select consumer end markets as trade uncertainty is impacting consumer sentiment. Consolidated revenue for the third quarter was $705 million, 3% below the third quarter of the prior year, as growth from acquisitions of 4% partially offset a 6% reduction in organic sales and a 1% reduction due to unfavorable foreign exchange.
As previously announced on August 19, PolyOne reached an agreement to divest its PP&S segment and confirms that the sale process is on track and the transaction is expected to be completed in the fourth quarter. The company expects approximately $600 million of after-tax proceeds from the sale.
„The divestment of PP&S is expected to close soon, which will reduce our exposure to more cyclical end markets and strengthen our balance sheet. This also provides us greater financial flexibility to continue building our portfolio with higher growth specialty and sustainable solutions,“ Mr. Patterson said.
Sustainability remains a focus and key area of investment. To articulate the company’s strategy and recent contributions to sustainability initiatives, PolyOne yesterday issued its first Sustainability Report. Available at www.polyone.com/sustainability, the report captures performance and progress in PolyOne’s four cornerstones of sustainability: People, Products, Planet and Performance. „We’re very excited to share some of the many examples of how our global associates are helping customers overcome their challenges and achieve their sustainability goals,“ Mr. Patterson said.
The Company plans to provide additional details on its third quarter performance and outlook for the balance of the year during its regularly scheduled conference call with analysts and investors.
Quelle: PolyOne
