Second quarter 20178 revenue increased 12% (6.5% organic) to $914.8 million, driven by continued momentum from investments in commercial resources and specialty acquisitions, while operating income remained steady at $77.4 million.
First half 2018 revenue was $1.82 billion, up from $1.61 billion in 2017. Operating income was relatively stable at $156.2 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 CEO, 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.
“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,” Patterson noted. “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.”
“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 EVP and CFO, 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.”
“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,” Patterson added. “We seek to capitalize on this important megatrend with additional investments in commercial and operational resources, and integration is off to a great start.”