CLEVELAND, Jan. 29, 2019 /PRNewswire/ -- PolyOne Corporation (NYSE: POL) today reported its fourth quarter and full year results for 2018. GAAP earnings per share were $0.15 in the fourth quarter of 2018 compared to $0.43 in the fourth quarter of 2017. Adjusted earnings per share were $0.41 in the fourth quarter of 2018, in line with the fourth quarter of 2017. Special items for the fourth quarter of 2018 primarily included a mark-to-market pension adjustment and environmental related costs (see Attachment 3).
Full year GAAP earnings per share were $2.00 in 2018 compared to $2.11 in 2017. Adjusted earnings per share in 2018 increased 10% to $2.43, from $2.21 in 2017.
"For the ninth consecutive year we have delivered adjusted EPS growth. This is a testament to the execution of our four-pillar strategy, our world-class service and the dedication of our global associates," said Robert M. Patterson, Chairman, President and Chief Executive Officer, PolyOne Corporation. "Our investments in commercial resources and specialty acquisitions continue to drive our expansion with our Color, Additives and Inks segment leading the way. For the year, Color increased revenue and operating income by 17% and 14%, respectively."
Mr. Patterson added, "Overall, I am incredibly pleased with our performance this year when considering that we incurred significantly higher raw material and logistics costs. We also overcame a more recent slowdown in demand in certain end markets and geographies which negatively impacted the second half of the year."
Softening demand conditions in the fourth quarter most heavily impacted the Performance Products and Solutions (PP&S) and Specialty Engineered Materials (SEM) segments. Specifically, end markets negatively impacting PP&S were building & construction and appliance. SEM was impacted by a more recent decline in demand in Europe and Asia primarily in transportation and consumer end markets.
Mr. Patterson cited the following key milestones from 2018:
- Reduced associate injuries by 19% and had the safest year in the company's history
- Certified as an ACC Responsible Care® organization for outstanding environmental, health and safety performance
- Delivered our ninth consecutive year of adjusted EPS growth
- Increased our dividend by 11% and for the seventh consecutive year in a row
- Purchased 3.4 million shares of PolyOne stock
- Acquired two specialty companies, IQAP and PlastiComp, and completed a third acquisition, Fiber-Line, in January of 2019
- For the first time in our history, certified as a Great Place to Work® in the U.S. by the Great Place to Work Institute
Commenting on the company's outlook, Mr. Patterson said, "Many companies are citing softening conditions in certain end markets and geographies. We certainly saw this at the end of 2018 and expect these conditions to continue into the beginning of this year. Fortunately, with the investments we have made, the breadth of our portfolio of technologies, and the organization we have in place, we are better positioned to navigate these near-term dynamics than ever before."
Mr. Patterson added, "Most importantly, we will continue to focus on executing our four-pillar strategy so that we can serve our customers with excellence and deliver for them and our shareholders over the long term."
The company will conduct a conference call at 8:00 a.m. Eastern Time on January 29, 2019. To participate in the conference call, dial 1-844-835-7433 (domestic) or 1-914-495-8589 (international) and provide conference ID number 2565135. A simultaneous webcast of the call will be accessible via the company's website at www.polyone.com/investor .
A recording of the call will also be available for one week, beginning at 12:00 p.m. Eastern Time on January 29, 2019. To listen to this recording, dial 1-855-859-2056 (domestic) or 1-404-537-3406 (international) and enter conference ID number 2565135.
PolyOne Corporation (NYSE: POL), with 2018 revenues of $3.5 billion, is a premier provider of specialized polymer materials, services and solutions. The company is dedicated to serving customers in diverse industries around the globe, by creating value through collaboration, innovation and an unwavering commitment to excellence. Guided by its Core Values, Sustainability Promise and No Surprises PledgeSM, PolyOne is an ACC Responsible Care® certified company committed to its customers, employees, communities and shareholders through ethical, sustainable and fiscally responsible principles. For more information, visit www.polyone.com .
To access PolyOne's news library online, please visit www.polyone.com/news .
In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: our ability to identify and evaluate acquisition targets and consummate and integrate acquisitions; disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; fluctuations in raw material prices, quality and supply, and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; an inability to raise or sustain prices for products or services; information systems failures and cyberattacks; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation. The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.
Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to PolyOne shareholders, excluding special items, to assess performance and facilitate comparability of results. Senior management believes these measures are useful to investors because they allow for comparison to PolyOne's performance in prior periods without the effect of items that, by their nature, tend to obscure PolyOne's operating results due to the potential variability across periods based on timing, frequency and magnitude. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP. Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. See Attachment 3 for a definition and summary of special items.
Liquidity is calculated as follows:
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SOURCE PolyOne Corporation