PolyOne (POL) Reports In-Line Q2 EPS, Revenues Beat

PolyOne (NYSE: POL) reported Q2 EPS of $0.71, in-line with the analyst estimate of $0.71. Revenue for the quarter came in at $914.8 million versus the consensus estimate of $908.1 million.

"Our investments in commercial resources and specialty acquisitions continue to drive our growth as we reported a 13% increase in adjusted EPS to $0.71 for the second quarter," said Robert M. Patterson, chairman, president and chief executive officer, PolyOne Corporation. "Our Color, Additives & Inks segment led the way with record operating income, driven by both organic gains and the acquisitions of Rutland, Mesa and IQAP."

Mr. Patterson continued, "I'm particularly pleased with our results when you consider that all of our businesses continue to experience higher raw material and freight costs. In addition, certain raw materials such as nylon 6/6 and fluoropolymers continue to be in short supply."

"Under the circumstances, we are doing an exemplary job serving our customers and improving profitability at the same time. Our Specialty Engineered Materials segment was no exception with operating income expanding 8% over the prior year," Mr. Patterson added.

"We have a track record of generating strong free cash flow, and this was once again the case in the second quarter," said Bradley C. Richardson, executive vice president and chief financial officer, PolyOne Corporation. "We generated over $60 million of free cash flow during the quarter, allowing us to fund the acquisition of PlastiComp, while strengthening our balance sheet, as we ended the quarter with nearly $485 million of available liquidity."

"We were thrilled to welcome the PlastiComp team to PolyOne this quarter," Mr. Patterson added. "With its advanced composite solutions, PlastiComp is a fantastic business that has steadily grown through its ability to replace metal with lighter weight polymer solutions. We seek to capitalize on this important megatrend with additional investments in commercial and operational resources, and integration is off to a great start."

"As we discussed at our Investor Day in May, we are laying the foundation for sustainable long-term growth with our investments in sales, marketing and technology resources and our proven M&A strategy. Over the last three years, we have increased the number of commercial associates by over 20% and acquired 10 specialty companies," added Mr. Patterson. "This quarter illustrates our capabilities as we delivered organic sales expansion of 6.5% and recent specialty acquisitions added 4%." The company noted favorable foreign exchange added 1.5%.

"These investments and world-class service continue to differentiate PolyOne in the marketplace and enable us to better serve our

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