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.”
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