PolyOne's Q3 sales rise; earnings decline from special charges, tad lower operating income

06-Nov-08

PolyOne Corporation, a premier global provider of specialized polymer materials, services and solutions, reported Q3 2008 sales of US$735.1 mln, a 10.6% increase compared to sales of US$664.8 mln in the same quarter previous year. The company reported a net loss of US$5.6 mln or $0.06/share for Q3 2008 compared with net income of US$2.3 mln or $0.02/diluted share in Q3 2007. Included in the results for the third quarter of 2008 and 2007 are special items resulting in charges of $0.19 and $0.12, respectively. PolyOne's SunBelt joint venture was forced to temporarily shut down due to impact of Hurricane Ike, the other facilities in the region managed to serve customer surpass post hurricane results for the quarter. In addition, the International Color and Engineered Materials segment has posted an operating income decline both year-on-year and versus the Q2 2008 due to the US economic slowdown affecting Europe and Asia. Amidst the economic slowdown, the company expects lower than expected Q4 earnings for 2008 which will provide it with a uphill task of delivering fiscal earnings with the range as given in September. Other reasons for the same were latent supply and pricing uncertainties associated with the Gulf storms, reduced demand from the Asian region, a weakening of Euro versus US Dollar and finally due to turbulence in the US housing, construction, automotive and electronics sectors.