01.29.20
PolyOne Corporation reported its full year and fourth quarter results for 2019. Full year GAAP earnings per share from continuing operations were $0.97 in 2019 compared to $1.09 in 2018. Adjusted earnings per share in 2019 increased by 12% to $1.69, from $1.51 in 2018.
Fourth quarter GAAP earnings per share from continuing operations of $0.08 in 2019 compared to a loss of $0.02 per share in the fourth quarter of 2018. Adjusted earnings per share of $0.34 in the fourth quarter of 2019 exceeded the $0.30 expected at the time of the company's fourth quarter outlook announcement. The better than expected earnings were driven primarily by record performance from Advanced Composites.
Full-year sales were $2.86 billion, down slightly from $2.88 billion in 2018, with an operating income of $156.8 million, down from $178.6 million last year.
"Overall results for the fourth quarter were better than expected, and I'm pleased to report 12% adjusted EPS growth for the full year," said Robert M. Patterson, chairman, president and CEO, PolyOne Corporation. "Our investments in composites and other sustainable solutions helped to distinguish our performance, as Specialty Engineered Materials (SEM) led the way in both the fourth quarter and the full year."
The company noted that for the full year, SEM increased revenue and operating income by 16% and 20%, respectively. Growth in composites and wire and cable applications more than offset lower sales and operating income in Europe and Asia primarily resulting from weaker automotive demand. The latter demand conditions also negatively impacted the Color, Additives and Inks segment for the full year and fourth quarter.
"I also want to highlight our Distribution business, which increased operating income to a new record of $75 million for the year despite challenging end-market dynamics," Patterson added. "2019 marks our tenth consecutive year of adjusted EPS growth, which is a milestone accomplishment. It was also the year we took two major steps forward in our specialty transformation with the divestiture of PP&S for $775 million and the definitive agreement for the acquisition of Clariant Masterbatch," he said.
As the company disclosed in December, the Clariant transaction is expected to add $1.15 billion of annual revenue, and with run-rate synergies will add $0.85 to adjusted EPS (excluding step-up of depreciation and amortization) and increase EBITDA from specialty applications to greater than 85% on a pro forma basis.
Fourth quarter GAAP earnings per share from continuing operations of $0.08 in 2019 compared to a loss of $0.02 per share in the fourth quarter of 2018. Adjusted earnings per share of $0.34 in the fourth quarter of 2019 exceeded the $0.30 expected at the time of the company's fourth quarter outlook announcement. The better than expected earnings were driven primarily by record performance from Advanced Composites.
Full-year sales were $2.86 billion, down slightly from $2.88 billion in 2018, with an operating income of $156.8 million, down from $178.6 million last year.
"Overall results for the fourth quarter were better than expected, and I'm pleased to report 12% adjusted EPS growth for the full year," said Robert M. Patterson, chairman, president and CEO, PolyOne Corporation. "Our investments in composites and other sustainable solutions helped to distinguish our performance, as Specialty Engineered Materials (SEM) led the way in both the fourth quarter and the full year."
The company noted that for the full year, SEM increased revenue and operating income by 16% and 20%, respectively. Growth in composites and wire and cable applications more than offset lower sales and operating income in Europe and Asia primarily resulting from weaker automotive demand. The latter demand conditions also negatively impacted the Color, Additives and Inks segment for the full year and fourth quarter.
"I also want to highlight our Distribution business, which increased operating income to a new record of $75 million for the year despite challenging end-market dynamics," Patterson added. "2019 marks our tenth consecutive year of adjusted EPS growth, which is a milestone accomplishment. It was also the year we took two major steps forward in our specialty transformation with the divestiture of PP&S for $775 million and the definitive agreement for the acquisition of Clariant Masterbatch," he said.
As the company disclosed in December, the Clariant transaction is expected to add $1.15 billion of annual revenue, and with run-rate synergies will add $0.85 to adjusted EPS (excluding step-up of depreciation and amortization) and increase EBITDA from specialty applications to greater than 85% on a pro forma basis.
