Despite a drop in revenues, adjusted earnings per share soared 36% year-on-year at PolyOne Corp in the third quarter ended September 30, 2014, driven by mix improvement and accelerated Spartech synergies.
"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,” PolyOne said.
This quarter was also the 20th consecutive quarter of strong double-digit adjusted earnings per share growth, with adjusted EPS expanding at a 27% compounded annual growth rate over this five-year period.
"Our mix of earnings has never been stronger or more sustainable, and this has translated into market-beating performance for our shareholders," said CEO Robert Patterson.
The producer of specialized polymer materials, services and solutions, reported sales of $958 million for the third quarter of 2014, compared to $1.01 billion in the third quarter of 2013.
PolyOne attributed the marginal decline in sales to exiting certain unprofitable products associated with the Spartech acquisition and operations in Brazil, coupled with recent weakness in Europe.
According to PolyOne, 43% of its specialty segment revenues now come from products introduced in the last five years.
Focus on working capital management and conversion of its accelerating earnings, drove $71 million in free cash flow, giving PolyOne $264 million in cash as of September 30, 2014.
During the quarter, PolyOne leveraged its strong financial position to continue to invest in innovation, realign assets supporting its specialty portfolio and repurchase 1.5 million shares.
Robert Patterson added, "Each of our strategic platforms delivered another outstanding quarter of both operating income and margin expansion.
"Despite softer macroeconomic conditions in Europe, we achieved record-setting third quarter results and we expect to deliver strong double-digit adjusted EPS growth in the fourth quarter and beyond." (AR)
