PolyOne Announces Second Quarter 2018 Results

– Revenue increased 12% (6.5% organic) driven by continued momentum from investments in commercial resources and specialty acquisitions
– Reported GAAP earnings per share of $0.64 vs. $0.60 in the prior year second quarter
– Adjusted EPS expands 13% to a new second quarter record of $0.71 driven by a 17% increase in operating income from Color, Additives and Inks (CAI) and an 8% increase in operating income from Specialty Engineered Materials (SEM)
– Second quarter acquisition of PlastiComp complements composites portfolio to drive future growthPolyOne Corporation (NYSE: POL) today reported its second quarter results for 2018. GAAP earnings per share was $0.64 in the second quarter of 2018 compared to $0.60 in the second quarter of 2017. Adjusted earnings per share expanded to $0.71 in the second quarter of 2018 from $0.63 in the second quarter of 2017. Special items for the second quarter of 2018, which primarily included environmental remediation and legal costs, resulted in a net after-tax charge of $5.9 million, or $0.07 per share (see Attachment 1). In the prior year, second quarter special items after-tax were $2.2 million, or $0.03 per share.

„Our investments in commercial resources and specialty acquisitions continue to drive our growth as we reported a 13% increase in adjusted EPS to $0.71 for the second quarter,“ said
Robert M. Patterson, chairman, president and chief executive officer, PolyOne Corporation.  „Our Color, Additives & Inks segment led the way with record operating income, driven by both organic gains and the acquisitions of Rutland, Mesa and IQAP.“

Mr. Patterson continued, „I’m particularly pleased with our results when you consider that all of our businesses continue to experience higher raw material and freight costs. In addition, certain raw materials such as nylon 6/6 and fluoropolymers continue to be in short supply.“

„Under the circumstances, we are doing an exemplary job serving our customers and improving profitability at the same time.  Our Specialty Engineered Materials segment was no exception with operating income expanding 8% over the prior year,“ Mr. Patterson added.

„We have a track record of generating strong free cash flow, and this was once again the case in the second quarter,“ said
Bradley C. Richardson, executive vice president and chief financial officer, PolyOne Corporation. „We generated over $60 million of free cash flow during the quarter, allowing us to fund the acquisition of PlastiComp, while strengthening our balance sheet, as we ended the quarter with nearly $485 million of available liquidity.“

„We were thrilled to welcome the PlastiComp team to PolyOne this quarter,“ Mr. Patterson added. „With its advanced composite solutions, PlastiComp is a fantastic business that has steadily grown through its ability to replace metal with lighter weight polymer solutions.  We seek to capitalize on this important megatrend with additional investments in commercial and operational resources, and integration is off to a great start.“

„As we discussed at our Investor Day in May, we are laying the foundation for sustainable long-term growth with our investments in sales, marketing and technology resources and our proven M&A strategy.  Over the last three years, we have increased the number of commercial associates by over 20% and acquired 10 specialty companies,“ added Mr. Patterson. „This quarter illustrates our capabilities as we delivered organic sales expansion of 6.5% and recent specialty acquisitions added 4%.“  The company noted favorable foreign exchange added 1.5%.

„These investments and world-class service continue to differentiate PolyOne in the marketplace and enable us to better serve our customers in new and existing markets and applications. In doing so, we can accelerate sales growth and expand margins to deliver sustainable double-digit EPS growth and increase return on invested capital as we outlined in May,“ Mr. Patterson concluded.

Quelle: PolyOne