PolyOne to cut more costs on gloomy ’09 outlook

22 December 2008 17:02  [Source: ICIS news]

HOUSTON (ICIS news)--Plastics processor PolyOne expects its US business to lose money in 2009 and plans further actions to cut costs, the company said on Monday.

Earlier this year, the company announced plans to close eight plants.

“While we are pleased with the improved short term outlook for operating income before special items, we recognise that the recent demand decline presents a challenging scenario for 2009,” said chief executive Stephen Newlin in a press release.

The company projected that stronger margins in the fourth quarter would offset a 15% year-over-year drop in revenues.

PolyOne’s international operations should remain profitable in 2009, but the US side of the business will suffer from lower housing and auto demand, growing pension expenses and restructuring costs, the company said.

The company will announce the details of its latest cost-cutting plan in February and will discontinue providing earnings guidance and intra-quarter updates.

Shares of PolyOne were traded more than 7% lower at $2.83 on Monday morning.

PolyOne compounds and distributes a variety of resins, including polyvinyl chloride (PVC), polyethylene (PE) and polypropylene (PP).

For more on PVC, PE and PP visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect
For more on PolyOne visit ICIS company intelligence

By: David Barry
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly