PolyOne Announces Fourth Quarter, Full Year 2017 Results

PolyOne Corporation reported its fourth quarter and full year results for 2017.  GAAP earnings per share in the fourth quarter of 2017 of $0.43 compared to $0.42 in the fourth quarter of 2016. Adjusted earnings per share of $0.41 increased from $0.39 in the prior year fourth quarter.  Special items for the fourth quarter of 2017, which primarily included tax adjustments associated with the Tax Cuts and Jobs Act, resulted in a net after-tax gain of $2.2 million, or $0.02 per share. Special items in the prior year quarter, the largest of which were a mark-to-market pension adjustment and restructuring charges, resulted in a net after-tax gain of $2.5 million, or $0.03 per share.

Full year GAAP earnings per share of $2.11 in 2017 compared to $1.96 in 2016.  Adjusted earnings per share in 2017 increased to $2.21, a seven percent increase from $2.06 in 2016.
“I am pleased to report record adjusted EPS for the eighth consecutive year,” said Robert M. Patterson, chairman, president and CEO, PolyOne Corporation.  “Over the last three years, we have increased our sales, marketing and R&D resources by nearly 20 percent.  These investments have improved collaboration and service levels for our existing and new customers, leading to accelerated and sustained growth at PolyOne.

“In 2017, we delivered the highest level of organic sales expansion since coming out of the recession in 2010, allowing us to overcome substantial raw material inflation and supply chain disruptions resulting from Hurricane Harvey,” he continued.

“Color, Additives and Inks had an outstanding quarter to end the year, driven by a five percent increase in organic sales and a 24 percent increase in operating income,” Patterson added.  “Color has tremendous momentum heading into 2018 bolstered by the four bolt-on acquisitions we have completed over the last twelve months, adding to our specialty colorant technology portfolio and geographic presence.”

Most recently, the company acquired IQAP Masterbatch (IQAP), a privately owned and innovative provider of specialty colorants and additives based in Spain with customers throughout Europe.  PolyOne expects IQAP will add approximately $45 million in revenue and be accretive to earnings in 2018.

Bradley C. Richardson, EVP and CFO, PolyOne Corporation, said, “Our strong free cash flow for the year enabled us to fund the acquisitions of SilCoTec, Rutland, Mesa, and IQAP while also returning cash to shareholders.  In 2017, we repurchased 2.0 million shares of common stock and announced a significant dividend expansion of 30 percent this year and a plan for more than 60 percent cumulatively over the next three years.

“With liquidity of nearly $600 million, we have significant financial capacity to continue to pursue strategic acquisitions, invest in innovation and return cash to shareholders via share repurchases and dividends.”

Added Patterson: “2017 was an important year for our company, as we transformed and repositioned our portfolio for sustainable growth, and delivered record adjusted EPS.  I am excited to kick-off 2018 with another highly innovative color and additives acquisition. IQAP is a great addition to the PolyOne family and fits our strategy of acquiring specialty businesses where we can accelerate growth with additional commercial investment.”