MOSCOW (MRC) -- PolyOne Corporation has reported its second quarter results for 2016, as per the company's press release.
GAAP earnings per share of USD0.59 in the second quarter of 2016 decreased from USD0.74 in the second quarter of 2015. Adjusted earnings per share increased 11% to USD0.63, from USD0.57 in the second quarter of 2015. Special items for the second quarter of 2016, which primarily included realignment and acquisition-related costs, resulted in a net after-tax charge of USD3.2 million, or USD0.04 per share (see Attachment 1). In the prior year quarter, special items, which primarily included a tax benefit and realignment charges, resulted in a net after-tax gain of USD15.9 million, or USD0.17 per share.
"I'm pleased to report adjusted EPS growth of 11% to USD0.63," said Robert M. Patterson, chairman, president, and chief executive officer, PolyOne Corporation. "Our focus on specialty applications and executing our four-pillar strategy have been the driving force behind PolyOne extending our streak to 27 consecutive quarters of adjusted EPS expansion."
Mr. Patterson added, "Performance Products & Solutions (PP&S) achieved another exceptional quarter, driven by continued mix improvement resulting in a new segment operating margin record of 12.3%. In addition, our recent investments in commercial resources resulted in a 9% volume increase in Distribution and profitability expansion in Engineered Materials."
Revenue for the second quarter of 2016 was USD862 million, compared to USD887 million in the second quarter of 2015. Underlying organic sales growth plus the addition of Magenta's fiber colorant business and Kraton's TPE business was more than offset by lower year-over-year selling prices in Distribution, PP&S, and Designed Structures and Solutions (DSS), due to lower hydro-carbon based raw material costs.
Bradley C. Richardson, executive vice president and chief financial officer, PolyOne Corporation, said, "Our balance sheet and cash flow remain very strong, and we ended June with over USD540 million of available liquidity. Also in the quarter, we successfully repriced our Senior Secured USD550 million Term Loan B, reducing the interest rate by 25 basis points to LIBOR + 2.75%. Our ability to reprice is reflective of the financial health and creditor confidence in our company."
In end-July, the company announced the acquisitions of Gordon Composites and Polystrand, two specialty businesses that will join PolyOne's existing composite technologies under a new platform to be called PolyOne Advanced Composites, which will operate within the Specialty Engineered Materials segment.
"I'm thrilled to have these companies join the PolyOne family," said Mr. Patterson. "Gordon Composites complements our Glasforms business with leading thermoset solutions. Polystrand establishes us with an immediate leadership position in new, next generation thermoplastic composites that combine high strength characteristics of a thermoset with the design freedom of thermoplastics."
"We're excited to leverage these new capabilities to better serve existing and future customers," Mr. Patterson added. "We continue to seek out specialty acquisitions to supplement our organic investments in innovation and additional commercial resources needed to drive new business gains. Overall, economic conditions remain sluggish, and I see these investments as more important now than ever to deliver long-term growth for our shareholders."
As MRC wrote before, in July 2016, PolyOne expanded its offerings for the European transportation industry. This includes the launch of OnFlex LO thermoplastic elastomers with reduced VOC levels for vehicle interiors.
PolyOne Corporation, with 2015 revenues of USD3.4 billion, is a premier provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins.
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