CLEVELAND, July 25, 2019 /PRNewswire/ -- PolyOne Corporation (NYSE: POL) today reported its second quarter results for 2019. Consolidated revenue for the second quarter was $904 million, 1% below the second quarter of the prior year as growth from acquisitions of 3.5% partially offset a 3.0% reduction in organic sales and a 1.5% reduction due to unfavorable foreign exchange.
GAAP earnings per share were $0.54 in the second quarter of 2019, including earnout adjustments associated with previous acquisitions, and compares to $0.64 in the second quarter of 2018. Adjusted earnings per share were $0.74 in the second quarter of 2019 compared to $0.71 for the second quarter of 2018.
"We finished the quarter at the high end of the range we communicated when we raised our outlook in early June," said Robert M. Patterson, Chairman, President and Chief Executive Officer, PolyOne Corporation. "Sequentially, margins expanded in all segments when compared to the first quarter of 2019, and this helped us offset much of the weakness we continue to experience in certain end markets and regions as well as unfavorable exchange."
Mr. Patterson continued, "Compared to the prior year second quarter, our Specialty Engineered Materials (SEM) segment led our performance with a 22% increase in operating income. I am very pleased with the investments we have made in composites and wire and cable applications, which helped drive this growth. This has been a significant area of focus for us as we build out a portfolio of more specialized materials and solutions in this segment."
"I am also pleased with the expansion of our sustainable solutions portfolio which is up 7% year-to-date versus last year," added Mr. Patterson. "These products are focused on reducing carbon footprint with lighter weight materials, increasing the recyclability of packaging and reducing water usage to name a few."
The company noted continued weakness in automotive demand in Europe and China, which impacted its SEM and Color Additives and Inks segments. While the company did experience modest improvement in North America construction demand versus previous expectations for the second quarter, sales into this end market remained below 2018 levels.
Commenting on the company's near-term outlook, Mr. Patterson said, "We believe the current market challenges will continue into the second half of 2019. Despite this, we have momentum from our composites investments, and we are realizing margin expansion from improved mix, pricing and cost reductions. Assuming we continue to capitalize on these efforts and experience no further decline in demand, we expect to deliver adjusted EPS growth of 4-6% for the full year. This is better than anticipated following our first quarter results."
"Longer term, we will continue to invest in our people, innovation and strengthening our portfolio," Mr. Patterson continued. "Innovation is the lifeblood of a specialty company, and our ongoing growth of composites and sustainable solutions are examples of how we're positioning PolyOne to serve our customers and deliver value to our many stakeholders well into the future," Mr. Patterson said.
The company will conduct a conference call at 8:00 a.m. Eastern Time on July 25, 2019. To participate in the conference call, dial 1-844-835-7433 (domestic) or 1-914-495-8589 (international) and provide conference ID number 7974277. 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 July 25, 2019. To listen to this recording, dial 1-855-859-2056 (domestic) or 1-404-537-3406 (international) and enter conference ID number 7974277.
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 ability 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, costs 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