PolyOne announces strong Q3 2014 results

MOSCOW (MRC) -- PolyOne Corporation, a premier global provider of specialized polymer materials, services and solutions, has reported its third quarter results, as per the company's report.

As previously announced, the Ccmpany exited certain unprofitable products associated with the Spartech acquisition and operations in Brazil. These actions, coupled with recent weakness in Europe, resulted in revenues of USD958 million for the third quarter of 2014, compared to USD1.01 billion in the third quarter of 2013.

As a result of mix improvement and accelerated Spartech synergies, adjusted earnings per share increased 36% to USD0.49 for the third quarter of 2014, up from USD0.36 in the third quarter of 2013.

"Each of our strategic platforms delivered another outstanding quarter of both operating income and margin expansion," said Robert M. Patterson, president and chief executive officer. "Despite softer macroeconomic conditions in Europe, we achieved record-setting third quarter results. I am extremely pleased to report this marks our 20th consecutive quarter of strong double-digit adjusted earnings per share growth. Over this five year period, adjusted EPS has expanded at a 27% compounded annual growth rate."

Mr. Patterson continued, "We have never lost sight of the fundamental principles of our transformation, and we continue to deliver on our goals. By putting our customers first and investing in innovation, we have developed a full suite of specialty offerings unmatched in the industry. Today, 43% of our specialty revenues now come from products introduced in the last five years."

"As we focus on helping our customers grow, we are not reluctant to replace existing business with new technology. Our commitment to this strategy is unwavering. Our mix of earnings has never been stronger or more sustainable, and this has translated into market-beating performance for our shareholders," added Mr. Patterson.

Executive vice-president and chief financial officer Bradley C. Richardson said, "Our focus on working capital management and conversion of our accelerating earnings drove USD71 million in free cash flow, giving us USD264 million in cash as of September 30, 2014. During the quarter, we leveraged our strong financial position to continue to invest in innovation, realign assets supporting our specialty portfolio and repurchase 1.5 million shares."

Commenting on the company's outlook, Mr. Patterson said, "While our first half 2014 performance included solid growth in Europe, we experienced declining demand from customers in this region during the third quarter. With heightened geopolitical concerns and macroeconomic weakness, we view European business conditions as a headwind for the remainder of the year and going into 2015." Mr. Patterson continued, "Fortunately, we have a proven strategy, a relentless focus on execution and an outstanding management team aligned with achieving our 2015 goals. I have confidence that we will overcome the challenges in Europe, and we expect to deliver strong double-digit adjusted EPS growth in the fourth quarter and beyond."

As MRC informed earlier, in February 2014, PolyOne Corporation announced the addition of new capabilities to its OnColor HC Plus portfolio. These expanded offerings add medical-grade LDPE, nylon, PEBA, PS and PVC to the globally available palette of specialty healthcare colorants, and are pre-certified to meet or exceed biocompatibility requirements for ISO 10993 and/or USP Class VI protocols.

PolyOne Corporation, with 2013 revenues of USD3.8 billion, is a global provider of specialized polymer materials, services, and solutions. PolyOne is a provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins.
MRC

MOSCOW (MRC) - Negotiations on November contract prices for Russian polyvinyl chloride (PVC) are difficult.
Despite a significant price rise for imported PVC, competition in the domestic market made Russian producers to cut their prices significantly, according to ICIS-MRC Price Report.

Negotiations on November contracts for Russian PVC began in mid-October. Rouble devaluation led to a serious increase in the price for imported material, particularly for Chinese acetylene PVC. However, this factor did not have a serious impact on the market.

After the launch of RusVinyl competition in the local market seriously increased, which benefited to converters.
Winter is a traditionally difficult season for PVC sales. But this year the situation is aggravated by the growth in PVC supply, when converters traditionally reduce the volume of purchases. Given this difficult conditions, Russian producers went for significant concessions.

Last week deals for November deliveries of Russian PVC were done in the range of Rb49,000-51,500/tonne CPT Moscow, including VAT, down on average of Rb2,000/tonne, compared with the level of October and significantly lower from the price for Chinese acetylene PVC. Nevertheless, some Russian converters were in no hurry to agree deals for the November delivery, hoping to achieve a bigger price cuts.

MRC

MOSCOW (MRC) -- Evonik Industries AG (EVK) is exploring an acquisition of Dutch competitor Royal DSM NV as Germany’s second-biggest chemicals maker seeks a large European target, according to people familiar with the matter, said Bloomberg.

Evonik is talking to advisers about a potential deal with DSM, which would create a company with about 22 billion euros (USD28 billion) in sales, as well as analyzing other takeover options, said the people, who asked not to be identified because discussions are private. The Heerlen, Netherlands-based company rebuffed an approach by the German company at the beginning of this year, the people said.

In addition to DSM, the German firm is evaluating companies such as Croda International Plc (CRDA) of the U.K. and Switzerland’s Clariant AG (CLN), according to the people. While Evonik is exploring an acquisition of all of DSM, which has a market value of 9 billion euros, it is most interested in the nutrition division, which supplies ingredients for health supplements and personal-care products, and would also consider buying just part of the company, the people said.

Talks with DSM earlier this year, which were more advanced than current deliberations, fell apart because the management of the Dutch firm was concerned about relocating to Germany, adopting the corporate governance structure there and strategic fit, the people said. Evonik hasn’t decided whether it will pursue an acquisition and DSM may resist a takeover, they said.

As MRC wrote before, Evonik said a worse-than-expected price trend in its Specialty Materials unit may result in a drop in core profit for the full year. The maker of feed additives, clear acrylic sheet and high-tech plastics, controlled by a state-owned trust, said the downward move in some key products had slowed perceptibly in recent months and it expects this trend to continue.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.7 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.
MRC

MOSCOW (MRC) -- Biaxplen, part of Russia's petrochemicals giant Sibur, has expanded its export of biaxially-oriented polypropylene (BOPP) film to the European market, said the producer in its press-release.

Biaxplen states that its products are now being shipped to Spain and Bosnia and Herzegovina.

"The European market with its well-developed infrastructure and transparent practices is one of the most attractive for Biaxplen. Over the last year, we geared up to expand Russian supplies to this market as two new BOPP production lines were launched, in Tomsk and Novokuybyshevsk, boosting Biaxplen's overall capacity by over 60 percent. Today, our company's five sites are capable of producing up to 180 metric tons of BOPP film yearly," said Ilya Papusha, sales and marketing director of Biaxplen in a news release.

Biaxplen says its European Union exports of BOPP film account for 17% of total sales.

As MRC wrote before, Biaxplen in May 2014 launched a new biaxially-oriented polypropylene (BOPP) film production line in Novokuybyshevsk. Following the launch of the new 30.5 ktpa production line manufactured by Bruckner Maschinenbau, a German company, BOPP-film annual nameplate production capacity of Biaxplen's Novokuybyshevsk branch increased to 55.5 kt. Investment in the project exceeded RR 1.9 billion.

Biaxplen a subsidiary company of SIBUR Holding is a leading biaxially-oriented polypropylene (BOPP) film producer in Russia. Biaxplen's facilities consist of five production sites located in Novokuybyshevsk, Kursk, Balakhna (Nizhegorodsky region), Zheleznodorozhniy (Moscow region) and in Tomsk.
MRC

MOSCOW (MRC) -- DKSH, the leading market expansion services provider, and BTC Chemical Distribution, a subsidiary of BASF, will start a strategic collaboration for colorants in the personal care and household industries in 14 Asian countries, as per BASF's press release.

Thus, DKSH’s Business Unit Performance Materials, a leading specialty chemicals distributor, has been appointed to provide market expansion services for BASF's product range of home and personal care colorants in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Myanmar, Philippines, Sri Lanka, Singapore, Thailand, Taiwan and Vietnam.

BASF offers one of the most comprehensive line of colorants for the home and personal care industry. The cooperation includes the product lines Puricolor and Iragon. DKSH Business Unit Performance Materials has been chosen as the exclusive Market Expansion Services partner due to its comprehensive Pan-Asian coverage, through specialized teams in each countries and its broad range of services including eight innovation centers and six regulatory affairs centers.

"We are delighted that BASF has chosen DKSH as their market expansion services partner across Asia. We have a strong customer base that has been established over almost 150 years of doing business in Asia. We are convinced that our local business partners will be excited about the opportunity to have access to BASF’s products," commented Cesar Saez, Vice President, Business Line Personal Care Industry, DKSH Performance Materials.

As MRC wrote previously, in July 2014, Alpek and BASF signed agreements concerning the EPS (expandable polystyrene) and PU (polyurethane) business activities of their Polioles joint venture in Mexico, and BASF’s EPS business in North and South America, excluding BASF’s Neopor (grey EPS) business.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN).

DKSH Business Unit Performance Materials is a leading specialty chemicals distributor and provider of market expansion Services for performance materials, covering Europe, North America, and the whole of Asia. The Business Unit sources, develops, markets, and distributes a wide range of specialty chemicals and ingredients for pharmaceutical, personal care, food & beverage, as well as various industrial applications.
MRC