PolyOne Announces 3Q 2017 Results

PolyOne Corporation reported its third quarter results for 2017.Revenue increased 10% to $818 million, driven by broad-based organic growth of 5% and recent specialty acquisitions. GAAP earnings per share in the third quarter of 2017 was $0.49 compared to $0.51 in the third quarter of 2016.Adjusted earnings per share increased to $0.58 from $0.55 in the prior year third quarter, led by gains in Color, Additives and Inks segment.
 
“Our investments in commercial resources, innovation, and specialty acquisitions continue to drive results, as we delivered record adjusted EPS of $0.58 for the third quarter,” said Robert M. Patterson, chairman, president and CEO, PolyOne Corporation.“Color, Additives and Inks led the way with all-time high revenue and operating income.
 
“Consolidated sales increased 10% to $818 million for the third quarter driven primarily by 5% organic expansion and recent specialty acquisitions, which added 4%. Favorable foreign exchange positively impacted sales by 1%,” Patterson continued. “We are very pleased with our recent performance; however, like many companies we have been focused on the safety and welfare of employees, families and communities impacted by Hurricanes Harvey and Irma.While our facilities were undamaged and all of our employees are safe, others were not as fortunate.”
 
“We are experiencing raw material supply and transportation disruptions as a result of these storms,” added Bradley C. Richardson, EVP and CFO, PolyOne Corporation.“Fortunately, we believe these to be short-term in nature and additional expenses related to them will approximate $3 million to $4 million in the fourth quarter.Most importantly, we remain focused on assisting local communities and residents where needed and serving our customers.”
 
Earlier in October, PolyOne’s Board of Directors declared a quarterly cash dividend of $0.175 per share on the common stock outstanding, representing a 30% increase to the quarterly cash dividend.As part of the announcement, the company also communicated a plan to raise its annual dividend by 60% cumulatively over the next three years.
 
“Our recently announced dividend expansion is our largest ever, and our three-year plan of a 60% cumulative increase reflects the important steps we have taken to further strengthen our portfolio, balance sheet and future cash flows,” Richardson continued, “We view the increased payouts as one element of a balanced approach in delivering value to our shareholders.As we look ahead, we will continue to fund our organic growth initiatives as our first priority, seek attractive specialty acquisitions and also be opportunistic with respect to buying back shares.”