PolyOne Corporation Q2 revenues surge 37%

Highlights:

- Earnings per share expand to $1.83 compared to $0.27 in second quarter 2012 including the gain on sale of non-core resin business; revenues increase to $1,038 million

- Strong global performance by specialty platform drives adjusted earnings per share of $0.37, a 23% increase over the prior-year quarter and the 15th consecutive quarter of double-digit adjusted earnings per share growth

- Reaffirm expectation of at least $65 million in Spartech synergies by the end of year three post acquisition

Diluted earnings per share from continuing operations totaled $0.39 in the second quarter of 2013, compared to $0.20 in the second quarter of 2012; adjusted earnings per share grew 23% to $0.37 for the second quarter of 2013 from $0.30 in the second quarter of 2012.  Total earnings per share for the quarter including the gain from the sale of our non-core resin business was $1.83 compared to $0.27 in the same period last year.

"I am pleased to report another outstanding quarter for PolyOne as we not only delivered strong earnings growth but also completed the divestiture of our non-core resin business for a pre-tax gain of $224 million," said Stephen D. Newlin, Chairman, President, and Chief Executive Officer.  "While each of our three strategic platforms improved operating income year over year, our specialty platform was once again our engine for growth."

Mr. Newlin went on to say, "Mix improvement continues to be at the heart of our transformation story as we offer increasingly innovative products and solutions in specialty markets.  With the addition of Spartech, we have expanded our position in packaging, aerospace, security and other markets. During the second quarter, specialty contributed nearly two-thirds of our segment operating income."

"Our integration efforts are well underway and we have made substantial progress since acquiring Spartech," said Bob Patterson, Executive Vice President and Chief Operating Officer.  "In line with our recent announcement about our North American manufacturing realignment, we reaffirm our target of at least $65 million in Spartech synergies by the third anniversary of this important acquisition."

"We ended the quarter with $392 million of cash, as we received the proceeds from the sale of our non-core resin business," said Richard J. Diemer, Jr., Senior Vice President and Chief Financial Officer. 

"Coupled with $310 million of availability under our asset-based revolver, we have more than ample liquidity to continue to drive innovation, pursue targeted M&A activity, fund share repurchases and provide incremental returns to shareholders via our quarterly dividend.  During the quarter, we repurchased 2.2 million common shares under our existing share repurchase program, bringing our total to just under 3 million shares for the year."

Commenting on the Company's outlook, Mr. Newlin said, "Our improving mix of specialty offerings has allowed us to continue to outperform the industry and drive superior growth for our shareholders.  While our second quarter is seasonally the strongest of the year, we continue to expect to report year over year double-digit EPS growth in the second half of 2013."

PolyOne