Consumables
PolyOne Announces Strong Third Quarter 2012 Results
Wednesday 24. October 2012 - Earnings per share of $0.27; earnings per share as adjusted of $0.33, a third quarter record and a 27% year-over-year increase
Expanded operating margins and operating profits in all business platforms
Mix improvement strategy drives margin expansion
Accelerating conference call to discuss third quarter earnings to 9:00 a.m. EDT Wednesday, October 24, which will also include discussion on the recently announced Spartech Corporation acquisition
PolyOne Corporation (NYSE: POL) today reported $740.2 million of revenues for the third quarter of 2012, compared to $735.8 million in the third quarter of 2011.
Diluted earnings per share totaled $0.27 in the third quarter of 2012 compared to $0.23 in the third quarter of 2011. Adjusted diluted earnings per share increased 27% to $0.33 for the third quarter of 2012, compared to $0.26 in the third quarter last year.
“I am very pleased with our record third quarter results, which marks PolyOne’s twelfth consecutive quarter of year-over-year double-digit adjusted earnings per share growth. Over the past three years, PolyOne has grown adjusted EPS more than twice the CAGR of the S&P 500,” said Stephen D. Newlin, chairman, president and chief executive officer. “We delivered record third quarter adjusted earnings per share, driven by our ongoing and successful mix improvement strategy.”
Commenting on the quarter, Mr. Newlin said, “This was an outstanding quarter on many dimensions, including earnings growth and organic operating margin expansion due to mix improvement, with all platforms contributing to this success. On-time delivery to our customers reached an all-time record level of 96%, as measured to their original requested date, while we successfully maintained world-class working capital levels. Innovation was a significant driver of mix improvement, as evidenced by record levels of our Specialty platform sales generated from products introduced in the past five years.”
“We ended the quarter with $249 million of cash as a result of excellent working capitalmanagement. This, coupled with $179 million of availability under our asset-basedrevolver, leaves us with ample liquidity to fund future growth initiatives and provide returnsto shareholders through dividends and share buybacks,” added Richard J. Diemer, Jr.,senior vice president and chief financial officer.
Commenting on the company’s outlook, Mr. Newlin said, “We are encouraged that the impact of the weaker European economy appears to be stabilizing, albeit at lower levels. Through the disciplined execution of our four pillar strategy, we expect to deliver doubledigit adjusted earnings per share growth in the fourth quarter of 2012 over last year.”
The company recorded special items of $8.3 million ($5.3 million after tax; $0.06 per share) in the third quarter of 2012, the most significant of which related to environmental remediation. Special items of $4.8 million ($3.1 million after tax; $0.03 per share) in the third quarter of 2011 also related primarily to environmental remediation costs