Edited from "PolyOne reports third-quarter 2008 results" and “our strategy” company website
On the back of a challenging environment, PolyOne states that its key end markets such as housing, construction, automotive and electronics face particularly troubling business conditions, which it expects may continue throughout other markets, as the global economic slowdown gains momentum. 
“We expect further pressure on our international results, first as it becomes increasingly clear that European and Asian demand is slowing, and second due to the continued weakening of the euro relative to the US dollar”, says chairman, president and chief executive officer, Stephen Newlin.
As a next step in its strategic transformation, PolyOne announced in July 2008 that it is realigning certain manufacturing assets, primarily in North America. The decision to realign assets is a result of the company's ongoing focus on both the operational excellence and specialisation components of its transformation strategy.
This realignment is designed to enable the company to improve the competitiveness of its operations and supply chain across many platforms and businesses, consistent with current and anticipated customer requirements.
It is further believed that it will enhance the company's long-term performance, while
helping to mitigate the effects of the current economic downturn and the
increases in raw material and energy costs.
In addition, in July 2008, PolyOne identified the locations of the eight plants that it plans to close. These include plants in Commerce, California; Macedonia, Ohio; Plaquemine, Louisiana; St Peters, Missouri; Sussex, Wisconsin; Valleyfield, Quebec; and Bolton Lancashire, UK.
PolyOne said it will also close building 452 of its production facility in Avon Lake, Ohio.
The plants fall under PolyOne's segments for vinyl, specialty inks and polymer systems, colour and additives and engineered materials.
Strategy
PolyOne is executing a transformational strategy that consists of four core components:
Specialisation differentiating it through value-creating offerings that extend beyond products to help customers who care about service, technology and problem solving.
Globalisation taking it into high-growth markets where its customers are migrating, and positions it to serve them with consistency everywhere in the world.
Operational excellence empowers it to respond to the voice of the customer with a relentless focus on continuous improvement in everything it does.
Commercial excellence governs its activities in the marketplace, where it delivers value to customers by showing them how they can increase their profits and grow.
Looking ahead, in reaction to the uncertainties described above, PolyOne is taking actions to reduce spending and preserve liquidity. The company says that it began 2008 expecting to spend between $55m and $60m for capital expenditures. However, this did not contemplate the incremental $6m to $7m it will incur in 2008 as a result of manufacturing realignment actions it announced in July 2008. Without limiting spending related to the realignment it is now forecasting to spend less than $55m.
ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.
A PDF of the ICIS Top 100 Chemical Companies is available for download on ICIS connect.
See the article and analysis of the ICIS Top 100 on ICIS news.
Financial highlights: PolyOne, year ended 31 December
|
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
Sales ($ m) |
2,739 |
2,643 |
2,622 |
2,451 |
2,268 |
|
Operating Profit ($ m) |
-129 |
34 |
191 |
141 |
129 |
|
Net Profit ($ m) |
-273 |
11 |
123 |
48 |
24 |
|
Total Assets ($ m) |
1,278 |
1,583 |
1,781 |
1,695 |
1,753 |
|
Diluted earnings per share ($) |
-2.94 |
0.12 |
1.33 |
0.52 |
0.26 |
|
Number of Employees |
-- |
4,800 |
4,670 |
5,020 |
5,233 |
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PolyOne
Company Structure
PolyOne is an international polymer services company with customer-focused operations in thermoplastic compounds, specialty resins, specialty polymer formulations, engineered films, colour and additive systems, and rubber compounding and thermoplastic resin distribution. PolyOne was formed on 31 August 2000 from the consolidation of The Geon Company (Geon) and The MA Hanna Company (Hanna).
More about PolyOne Structure
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