PolyOne Announces Strong Third Quarter 2014 Results

- Adjusted earnings per share increased 36% to $0.49; GAAP EPS totaled $0.35 versus $0.24 in the prior year quarter

- Achieved 20th consecutive quarter of strong double-digit adjusted EPS growth

- Led by the Specialty Platform, all segments delivered year-over-year operating income gains driven by continued mix improvement and synergies from the Spartech acquisition

PolyOne Corporation (NYSE: POL) today reported its third quarter results.  As previously announced, the Company exited certain unprofitable products associated with the Spartech acquisition and operations in Brazil.   These actions, coupled with recent weakness in Europe, resulted in revenues of $958 million for the third quarter of 2014, compared to $1.01 billion in the third quarter of 2013.

As a result of mix improvement and accelerated Spartech synergies, adjusted earnings per share increased 36% to $0.49 for the third quarter of 2014, up from $0.36 in the third quarter of 2013.   GAAP earnings per share totaled $0.35 in the third quarter of 2014, versus $0.24 in the prior year quarter.

"Each of our strategic platforms delivered another outstanding quarter of both operating income and margin expansion," said Robert M. Patterson, president and chief executive officer.  "Despite softer macroeconomic conditions in Europe, we achieved record-setting third quarter results. I am extremely pleased to report this marks our 20th consecutive quarter of strong double-digit adjusted earnings per share growth.  Over this five year period, adjusted EPS has expanded at a 27% compounded annual growth rate."

Mr. Patterson continued, "We have never lost sight of the fundamental principles of our transformation, and we continue to deliver on our goals.  By putting our customers first and investing in innovation, we have developed a full suite of specialty offerings unmatched in the industry.  Today, 43% of our specialty revenues now come from products introduced in the last five years."

"As we focus on helping our customers grow, we are not reluctant to replace existing business with new technology.  Our commitment to this strategy is unwavering. Our mix of earnings has never been stronger or more sustainable, and this has translated into market-beating performance for our shareholders," added Mr. Patterson.

Executive vice-president and chief financial officer Bradley C. Richardson said, "Our focus on working capital management and conversion of our accelerating earnings drove $71 million in free cash flow, giving us $264 million in cash as of September 30, 2014.  During the quarter, we leveraged our strong financial position to continue to invest in innovation, realign assets supporting our specialty portfolio and repurchase 1.5 million shares."

Commenting on the Company's outlook, Mr. Patterson said, "While our first half 2014 performance included solid growth in Europe, we experienced declining demand from customers in this region during the third quarter.  With heightened geopolitical concerns and macroeconomic weakness, we view European business conditions as a headwind for the remainder of the year and going into 2015." Mr. Patterson continued, "Fortunately, we have a proven strategy, a relentless focus on execution and an outstanding management team aligned with achieving our 2015 goals.  I have confidence that we will overcome the challenges in Europe, and we expect to deliver strong double-digit adjusted EPS growth in the fourth quarter and beyond."

www.polyone.com