CLEVELAND, April 17, 2019 /PRNewswire/ -- PolyOne Corporation (NYSE: POL) today reported its first quarter results for 2019. Consolidated revenue for the first quarter was $900 million, flat with the prior year as growth from acquisitions of 3.5% was offset by a 1.5% reduction in organic sales and a 2% impact due to unfavorable foreign exchange.
GAAP earnings per share were $0.49 in the first quarter of 2019 compared to $0.59 in the first quarter of 2018. Adjusted earnings per share were $0.64 in the first quarter of 2019 compared to $0.68 for the first quarter of 2018.
"Like many companies in our space, we experienced weaker demand in certain end markets and unfavorable foreign exchange during the first quarter. This resulted in a year over year decline in sales and earnings," said Robert M. Patterson, Chairman, President and Chief Executive Officer, PolyOne Corporation. "Key drivers included lower automotive sales in Europe and China which impacted Color, Additives and Inks (Color) and Specialty Engineered Materials (SEM), and a decline in construction related sales, which primarily impacted Performance Products and Solutions (PPS) in North America."
Mr. Patterson continued, "These headwinds were partially offset by favorable product mix and margin expansion in Distribution as well as new business gains in composites and sustainable solutions. In fact, we had our best quarter ever for composites since we began investing in this space."
Composite sales increased 10% organically driven by new business in consumer and electrical end markets. Combined with strong performance from the company's January 2019 acquisition of Fiber-Line, composites-led growth added 17% to SEM operating income over the prior year first quarter. Fiber-Line had the best quarter in its history as a result of the continued build-out of 4G and emerging 5G network infrastructure.
Sustainable solutions include next generation packaging technologies which extend shelf-life for perishable beverages. Sales in these product applications increased 34% in China compared to the first quarter of last year.
Commenting on the company's outlook, Mr. Patterson said, "We believe the current market challenges are temporary, and we will see a recovery in the second half of the year. While we are encouraged and optimistic, we are not waiting for market improvement to unfold. Accordingly, we have taken actions to reduce costs primarily through targeted workforce reductions and limiting discretionary spending."
Mr. Patterson continued, "We believe these actions are prudent in the short term, but also balanced, as we are not curtailing our ability to deliver for the long term. We are continuing to invest in key end markets and innovation, and as this quarter has demonstrated, our investments in composites and sustainable solutions are paying off."
The company will conduct a conference call at 8:00 a.m. Eastern Time on April 17, 2019. To participate in the conference call, dial 1-844-835-7433 (domestic) or 1-914-495-8589 (international) and provide conference ID number 7476534. 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 April 17, 2019. To listen to this recording, dial 1-855-859-2056 (domestic) or 1-404-537-3406 (international) and enter conference ID number 7476534.
PolyOne Corporation (NYSE: POL), with 2018 revenues of $3.5 billion, is a premier provider of specialized polymer materials, services and solutions. The company adds value to global customers and improves sustainability through formulating materials, such as:
- Barrier technologies that preserve the shelf-life and quality of food, beverages, medicine and other perishable goods through high-performance materials that require less plastic
- Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation
- Breakthrough technologies that minimize wastewater and improve the recyclability of materials and packaging across a spectrum of end uses
PolyOne employs approximately 6,900 associates, is certified ACC Responsible Care® and Great Place to Work®, and is a founding member of the Alliance to End Plastic Waste. 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; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to acquisition and integration, working capital reductions, cost reductions and employee productivity goals; 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.
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SOURCE PolyOne Corporation