CLEVELAND, Oct. 27, 2015 /PRNewswire/ — PolyOne Corporation (NYSE: POL) today reported its third quarter results for 2015. Adjusted earnings per share increased 10% to a third quarter record of $0.54, up from $0.49 in the third quarter of 2014. GAAP earnings per share of $0.50 in the third quarter of 2015 increased from $0.35 in the third quarter of 2014. Special items for the third quarter of 2015 included realignment charges and a tax benefit, which resulted in a net after-tax charge of $3.0 million, or $0.04 per share (see Attachment 1).

“I am very pleased to report we delivered our 24th consecutive quarter of year-over-year adjusted earnings per share expansion, overcoming challenging macro-economic conditions including a weaker Euro,” said Robert M. Patterson, president and chief executive officer, PolyOne Corporation. “Our Color, Additives & Inks and Specialty Engineered Materials segments continued to lead the way with record-breaking operating income and profitability for the third quarter.”

PolyOne Corporation

Mr. Patterson added, “Innovation and mix improvement continue to be at the heart of our specialty transformation, and the driving force behind six years of impressive earnings growth. Since we began our specialty journey in 2006, we have shed low margin, high volume commodity business and grown specialty niche applications. While this has resulted in a volume reduction of 16%, gross profit has increased 139%.”

Mr. Patterson continued, “However, ours has not been a cost cutting story. In fact, the opposite is true. The near doubling of our commercial resources has made it possible for us to move away from commodity applications toward a much more specialized portfolio.”

PolyOne Corporation

Revenue for the third quarter of 2015 was $842 million, compared to $958 million in the third quarter of 2014. The decline resulted from unfavorable foreign exchange, lower selling prices in Distribution and Performance Products & Solutions due to lower hydrocarbon based raw material costs and the ongoing integration of the legacy Spartech business.

“Since we acquired Spartech in 2013, we have been implementing our four-pillar strategy and overhauling the culture much the same way we transformed PolyOne in the early years,” said Mr. Patterson. “In fact, just like we did at PolyOne, we are focused on improving on-time delivery to customer request date as an important early step. While we still have work to do to get to our goal of 95%, I’m pleased to report progress in this regard as well as numerous operational efficiency and quality gains, all while reducing scrap rates in our plants.”

Bradley C. Richardson, executive vice president and chief financial officer, PolyOne Corporation said, “During the quarter, we leveraged our strong free cash flow to deliver value to shareholders, including repurchasing nearly 2.4 million shares and increasing our quarterly dividend by 20% to $0.12 per share.”

Mr. Richardson added, “This week, we intend to launch a refinancing of our $317 million senior unsecured notes due 2020 and other outstanding debt with a $550 million term loan due 2022. This will allow us to lock in favorable terms, extend maturities, and enhance our liquidity.”

Commenting on the company’s outlook, Mr. Patterson said, “We remain focused on what we can control, and we are investing for the future. To drive growth in a challenging macro-economic environment, we have increased our sales force by 6% since the beginning of the year with plans to add more by year end. We are funding these resources with reduced administrative costs and discretionary spending.”

Mr. Patterson continued, “These new sellers have hit the ground running and will help us deliver both revenue and margin expansion in 2016. Longer term, our proven four pillar strategy and relentless focus on execution will continue to drive us toward consistently delivering double-digit EPS growth with our sights set on our 2020 Platinum Vision.”

About PolyOne
PolyOne Corporation, with 2014 revenues of $3.8 billion, is a premier provider of specialized polymer materials, services and solutions. The company is dedicated to serving customers in diverse industries around the globe, by creating value through collaboration, innovation and an unwavering commitment to excellence. Guided by its Core Values, Sustainability Promise and No Surprises Pledge(SM), PolyOne is committed to its customers, employees, communities and shareholders through ethical, sustainable and fiscally responsible principles. For more information, visit www.polyone.com.

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