PolyOne Announces Full Year, Fourth Quarter 2018 Results

PolyOne Corporation reported its fourth quarter and full year results for 2018. GAAP earnings per share were $0.15 in the fourth quarter of 2018 compared to $0.43 in the fourth quarter of 2017. Adjusted earnings per share were $0.41 in the fourth quarter of 2018, in line with the fourth quarter of 2017.
 
Full year GAAP earnings per share were $2.00 in 2018 compared to $2.11 in 2017. Adjusted earnings per share in 2018 increased 10% to $2.43, from $2.21 in 2017.
 
For the full year, revenue increased 9% to $3.5 billion driven by organic growth of 5%, as acquisitions contributed 3% and foreign currency added 1%. In the fourth quarter of 2018, revenue increased 4% (3% organic) to $834 million.
 
“For the ninth consecutive year, we have delivered adjusted EPS growth. This is a testament to the execution of our four-pillar strategy, our world-class service and the dedication of our global associates,” said Robert M. Patterson, chairman, president and CEO, PolyOne Corporation. “Our investments in commercial resources and specialty acquisitions continue to drive our expansion with our Color, Additives and Inks segment leading the way. For the year, Color increased revenue and operating income by 17% and 14%, respectively.
 
“Overall, I am incredibly pleased with our performance this year when considering that we incurred significantly higher raw material and logistics costs,” Patterson added. “We also overcame a more recent slowdown in demand in certain end markets and geographies which negatively impacted the second half of the year.”
 
Softening demand conditions in the fourth quarter most heavily impacted the Performance Products and Solutions and Specialty Engineered Materials segments. Specifically, end markets negatively impacting PP&S were building & construction and appliance. SEM was impacted by a more recent decline in demand in Europe and Asia primarily in transportation and consumer end markets.
 
Commenting on the company’s outlook, Patterson said, “Many companies are citing softening conditions in certain end markets and geographies. We certainly saw this at the end of 2018 and expect these conditions to continue into the beginning of this year. Fortunately, with the investments we have made, the breadth of our portfolio of technologies, and the organization we have in place, we are better positioned to navigate these near-term dynamics than ever before.”