PolyOne swings to net profit of $18.4m on higher sales volumes

05 May 2010 13:25  [Source: ICIS news]

LONDON (ICIS news)--PolyOne Corporation swung to a first-quarter net profit of $18.4m (€14.2m) – from a loss of $17.7m in the same period of 2009 – due to a significant increase in sales following new business gains and improved demand, the company said on Tuesday.

The US-based polymer firm said it achieved its highest quarterly earnings since the second quarter of 2006 after revenue grew 36% year over year to $630.4m, driven by a 27% rise in sales volume.

Operating income before special items increased to $34.4m or 5.5% of sales from $5.5m or 1.2% of sales in the first quarter of 2009, the company said.

Combined operating profit from all three strategic units reached a new record of $41.7m, to which the specialty platform - with an income of $21m - contributed the most, PolyOne added.

Stephen Newlin, chairman, president and CEO, said the earnings power of the company had been “transformed”, adding: “We have overcome trough-like conditions in housing as well as a significant decline in earnings from our chlor-alkali joint venture.”

During the first quarter of 2010, cash declined $13.2m as the company repaid $20m in medium-term notes, which was offset partially by cash flow from operations and $9.8m from the sale of the company’s investment in O’Sullivan Films, it said.

“We continue to experience positive momentum heading into the second quarter,” Newlin said, adding: “Over the longer term, we certainly expect the pending recovery in housing starts and chlor-alkali pricing will provide upside to our first-quarter performance.”

($1 = €0.77)

For more on PolyOne visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Elaine Mills
+44 208 652 3214

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