Home / Knowledge / News / Textiles / PolyOne expects earnings improvement
PolyOne expects earnings improvement
27
Jun '08
PolyOne Corporation updated its outlook for the second quarter ending June 30, 2008.

The Company expects second-quarter consolidated sales to increase 7% to 9% compared with the second quarter of 2007, despite challenging demand trends in the North American housing and automotive markets.

This projection is slightly higher than the Company's original estimate of 6% to 8% sales growth. Second-quarter 2008 earnings before special items are expected to show modest improvement over the same period a year ago earnings before special items and to increase sequentially from first-quarter 2008 earnings before special items.

Aggregate sales for PolyOne's Specialty platform, including sales from GLS Corporation, are projected to grow nearly 25% in the quarter compared with the second quarter of 2007.

GLS was acquired in January 2008 and represents approximately 60% of the Specialty growth for the second quarter, similar to the first quarter of 2008.

PolyOne's Specialty platform consists of International Color and Engineered Materials, Specialty Engineered Materials, North American Color and Additives and Specialty Inks and Polymer Systems.

Operating income in the aggregate for these businesses is projected to grow significantly from the same period a year ago, reflecting both margin expansion and an increased sales base.

International Color and Engineered Materials sales in the second quarter are expected to demonstrate double-digit growth compared with the same period a year ago, primarily due to favorable foreign currency translation.

While International demand is generally intact, sales in the latter part of the quarter could be adversely affected by delivery disruptions due to freight carrier strikes in Europe.

In Asia, pockets of demand softening continue to be evident for customers who primarily export to North America. International segment operating income, driven by stronger operating margins, is expected to increase significantly compared with the second quarter of 2007.

For PolyOne Distribution, the Company anticipates meaningful increases in both sales and operating income during the second quarter of 2008 compared with the second quarter of 2007, with earnings impacted favorably by targeted growth efforts in key end markets.

Second-quarter 2008 sales for the Performance Products and Solutions platform are expected to decline 6% to 8% compared with the second quarter of 2007.

The Performance Products and Solutions platform consists of Geon Performance Polymers, Producer Services and Resin and Intermediates.

Operating income for Performance Products and Solutions is anticipated to be slightly above first-quarter 2008 performance, although significantly below the second-quarter 2007 level.

This decrease is due primarily to lower demand in the North American housing, construction and automotive markets compared with the same period a year ago, and margin pressure caused by higher raw material and energy costs not fully offset by increased pricing.

Must ReadView All

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Courtesy: Bombay Dyeing

Textiles | On 3rd Dec 2016

Bombay Dyeing to focus on retail; stops textile production

Bombay Dyeing, a Wadia group company, has decided to shift its focus...

Apparel/Garments | On 3rd Dec 2016

Q3FY17 net earnings slip 26.8% at denim retailer Guess

In the three months ended October 29, 2016, net earnings at denim...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search