CLEVELAND, Dec. 19, 2019 /PRNewswire/ -- PolyOne Corporation
(NYSE: POL), a leading global provider of specialized polymer
materials, services and solutions, today provided an update to its
fourth quarter 2019 performance outlook. The company will
host a conference call and webcast on December 19, 2019 to discuss the anticipated
acquisition of Clariant's color and additive masterbatch
business. The materials presented will reflect PolyOne's
updated adjusted earnings per share (EPS) outlook for the fourth
quarter and full year 2019.
For the fourth quarter 2019, the company expects adjusted
earnings per share of $0.30, a 25%
increase over the prior year. On its third quarter 2019
earnings conference call, the company said it expected fourth
quarter adjusted earnings to be up about 10%. This results in
a full-year adjusted EPS outlook of $1.65 from continuing operations, a 9% increase
over the prior year.
"We continue to deliver margin expansion in all three segments
from pricing actions, improved mix and cost reductions," said
Robert M. Patterson, Chairman,
President and Chief Executive Officer, PolyOne Corporation.
"The Specialty Engineered Materials segment in particular has
exceeded our previous expectations, driven by strong performance in
our composites platform and new business wins in
healthcare."
"We have invested heavily in composites, barrier technologies
and other sustainable solutions, thus improving our end market
diversification. These investments have built resiliency in
our portfolio and are helping to overcome the soft demand
conditions in certain regions and end markets," Mr. Patterson
added.
Webcast Details
PolyOne will host a webcast on December
19, 2019 at 9:00 a.m. EST. The
webcast can be viewed at polyone.com/investor, or by clicking here:
https://edge.media-server.com/mmc/p/jwns83z8. To participate in the
webcast, dial 1-844-835-7433 (domestic) or 1-914-495-8589
(international) and provide conference ID number 5289238.
There will be a brief question and answer session following the
company's prepared remarks.
A recording of the webcast and the investor presentation will be
available at polyone.com/investor. In addition, a recording of the
audio will be available for one week, beginning at noon a.m. EST on December
19, 2019. To listen to this recording, dial 1-855-859-2056
(domestic) or 1-404-537-3406 (international) and provide conference
ID number 5289238.
About PolyOne
PolyOne Corporation (NYSE: POL), with 2018 revenues of
$2.9 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 5,700 associates and is certified
ACC Responsible Care® and 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.
Forward-looking Statements
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: the
finalization of the Company's financial statements for the year
ending December 31, 2019; the
time required to consummate the acquisition of Clariant's color and
additive masterbatch business; the satisfaction or waiver of
conditions in the purchase agreements; any material adverse changes
in Clariant's color and additive masterbatch business; the ability
to obtain required regulatory or other third-party approvals and
consents and otherwise consummate the proposed acquisition of
Clariant's color and additive masterbatch business; our ability to
achieve the strategic and other objectives relating to the proposed
acquisition of Clariant's color and additive masterbatch business,
including any expected synergies; our ability to successfully
integrate Clariant's color and additive masterbatch business and
achieve the expected results of the acquisition of Clariant's color
and additive masterbatch business, including, without limitation,
the acquisition being accretive; 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.
Non-GAAP Reconciliation
The Company does not provide reconciliations of forward-looking
non-GAAP financial measures, such as outlook for adjusted earnings
per share, to the most comparable GAAP financial measures on a
forward-looking basis because the Company is unable to provide a
meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
timing and amount of certain items, such as, but not limited to,
restructuring costs, environmental remediation costs,
acquisition-related costs, and other non-routine costs. Each of
such adjustments has not yet occurred, are out of the Company's
control and/or cannot be reasonably predicted. For the same
reasons, the Company is unable to address the probable significance
of the unavailable information.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except per share data)
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.
Adjusted EPS attributable to PolyOne common shareholders is
calculated as follows:
|
|
Three Months
Ended,
December 31, 2018*
|
|
Year Ended,
December 31, 2018*
|
Net (loss) income
from continuing operations attributable to
PolyOne common
shareholders
|
|
$
|
(1.3)
|
|
$
|
87.7
|
Joint venture equity
earnings, after tax
|
|
—
|
|
—
|
Special items, before
tax(1)
|
|
26.2
|
|
58.7
|
Special items, tax
adjustments(1)
|
|
(5.6)
|
|
(25.1)
|
Adjusted net income
from continuing operations attributable to
PolyOne common
shareholders
|
|
$
|
19.3
|
|
$
|
121.3
|
|
|
|
|
|
Diluted
shares
|
|
79.2
|
|
80.4
|
Adjusted EPS
attributable to PolyOne common shareholders
|
|
$
|
0.24
|
|
$
|
1.51
|
* Pro Forma for sale of PP&S.
(1) Special items include charges related to specific
strategic initiatives or financial restructuring such as:
consolidation of operations; debt extinguishment costs; costs
incurred directly in relation to acquisitions or divestitures,
including adjustments related to contingent consideration; employee
separation costs resulting from personnel reduction programs, plant
realignment costs, executive separation agreements; asset
impairments; mark-to-market adjustments associated with actuarial
gains and losses on pension and other post-retirement benefit
plans; environmental remediation costs, fines, penalties and
related insurance recoveries related to facilities no longer owned
or closed in prior years; gains and losses on the divestiture of
operating businesses, joint ventures and equity investments; gains
and losses on facility or property sales or disposals; results of
litigation, fines or penalties, where such litigation (or action
relating to the fines or penalties) arose prior to the commencement
of the performance period; one-time, non- recurring items; and the
effect of changes in accounting principles or other such laws or
provisions affecting reported results. Tax adjustments include the
net tax benefit/(expense) from one-time income tax items, the
set-up or reversal of uncertain tax position reserves and deferred
income tax valuation allowance adjustments.
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SOURCE PolyOne Corporation