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PolyOne reports 21st quarter of strong adjusted EPS growth

30 Jan '15

3 min read

Highlighted by several performance records and strong profitability expansion, NYSE listed, PolyOne Corporation said it achieved the 21st consecutive quarter of strong double-digit adjusted EPS growth.

Adjusted earnings per share surged 38 per cent to $0.36 for the fourth quarter of 2014 ending December 31, 2014, from $0.26 in the fourth quarter of 2013.

However GAAP loss per share stood at $0.16 in the reporting quarter as against earnings per share of $0.22 in the fourth quarter of 2013.

“Special items for the fourth quarter of 2014, the largest of which was the mark-to-market pension adjustment, resulted in a net after-tax charge of $47.5 million, or $0.52 per share,” PolyOne said.

Revenue for the fourth quarter of 2014 however was down to $869 million compared to $924 million in same quarter last year.

According to PolyOne, as expected, the revenue decline resulted from ongoing mix improvement, including the exit of unprofitable products associated with the Spartech acquisition and Brazilian operations.

It also attributed the dip in turnover to weaker business conditions in Europe, and an unfavourable foreign exchange.

For the full year of 2014, revenue amounted to $3.84 billion, 2 per cent higher than revenue of $3.77 billion in the previous year.

“This growth, combined with significant profitability expansion, led to adjusted earnings per share for 2014 expanding 37 per cent to an all time record $1.80,” PolyOne added.

GAAP earnings per share reached $0.83 for the full year vis-à-vis earnings per share of $0.97 in 2013.

"CEO Robert Patterson said, “Specialty platform led the way with Global Color, Additives & Inks and Global Specialty Engineered Materials overcoming difficult economic conditions in Europe and a weaker Euro.”

"2014 was yet another great year in our company's history, underpinned by our unwavering commitment to our four pillar strategy and achieving our aggressive goals,” he added.

“Three of our businesses have already reached their 2015 margin targets with DSS and PP&S having line of sight to getting there this year," he informed.

Patterson attributed innovation and mix improvement to be at the heart of its specialty transformation, as 44 per cent of its specialty platform sales were from products introduced in the last five years.

PolyOne also added that it had made substantial progress towards achieving 2015 goals and its longer-term vision for 2020.

Strong free cash flow for the year enabled PolyOne to repurchase 6.3 million shares of common stock and increase annual dividend by 25 per cent.

During the year, it also completed the acquisition of Accella, thereby accelerating growth in its Specialty platform.

With liquidityof $475 million and a net debt to EBITDA of 1.9x, it said it has ample financial capacity to pursue strategic acquisitions, invest in innovation and continue share repurchases and dividends. (AR)

Fibre2fashion News Desk - India