24 October 2012 13:38 [Source: ICIS news]
LONDON (ICIS)--US-based compounder PolyOne reported on Wednesday that its net income for the third quarter of 2012 was $24m (€18m) – 11% higher than the same quarter of 2011.
The company, which announced the acquisition of US plastic products manufacturer Spartech today for a total transaction value of around $393m, also posted increased earnings for the quarter. Revenues reached $740.2m compared to $735.8m in the third quarter of 2011.
However, the net income figure represents a drop of $600,000 from that generated in the second quarter of 2012. Selling and administrative expenses reached $92.3m, up from $71.5m for the same time last year.
Operating income – a metric similar to earnings before interest and tax (EBIT) – for the company’s performance products and solutions business was up by nearly 25% to $20.8m, while operating income for its distribution unit increased to $16.4m from $14.1m in the third quarter of 2011.
PolyOne’s specialty platform, which comprises its engineered materials and colour, additives and inks operations, posted a 35% increase in operating income during the quarter to $29.6m
“We are encouraged that the impact of the weaker European economy appears to be stabilising, albeit at lower levels,” said PolyOne CEO Stephen Newlin.
At the end of the quarter, PolyOne had $249m of cash under management, and $179m in its revolving credit facility, although those figures may have altered following today’s acquisition of Spartech.
($1 = €0.77)
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