Interviews
News Flash
PolyOne updates second half 2008 outlook
17 Sep '08
5 min read
The Company expects earnings from its SunBelt joint venture to benefit from favorable caustic soda price trends which are expected to more than offset weak end-market demand for chlorine derivatives. However, some of this benefit may be offset by potential delays in customer orders as a result of Hurricane Ike. Corporate costs are expected to be lower than previously forecasted as a result of reduced incentive accrual estimates.
Senior vice president and chief financial officer Robert M. Patterson said, “It's unfortunate that our increasingly successful specialty business focus and growth initiatives are being temporarily overshadowed by weak end-market demand and unfavorable pricing dynamics.
Clearly we made the right decision in July to close certain of our manufacturing facilities and reduce overall manufacturing capacity. We will be focusing our efforts on accelerating these previously announced actions to help offset the headwinds outlined above.”
Patterson added, “As a result of the business interruption related to the hurricane and the unfavorable trends observed in our Performance Products and Solutions segment and Europe, we expect it will be a challenge to reach consensus expectations of $0.13 per share for the third quarter, before special items.
Further, it is difficult to forecast our results for the year given the number of uncertainties in the market, and therefore we are projecting a range of performance between $0.36 and $0.41 per share before special items for the fiscal year ending December 31, 2008.”
Additional considerations
• The Company expects third quarter special items to approximate $0.17 - $0.19 per share. The majority of these costs relate to the previously announced manufacturing realignment, although the Company also expects to record incremental legacy environmental costs that increased as a result of higher utility cost estimates necessary to support remediation.
• Net interest expense for the remainder of the year is expected to approximate the second quarter run-rate, as anticipated debt reductions will occur toward the end of the year.
• The Company anticipates an effective tax rate between 33% and 35% for the second half of 2008.
Senior vice president and chief financial officer Robert M. Patterson said, “It's unfortunate that our increasingly successful specialty business focus and growth initiatives are being temporarily overshadowed by weak end-market demand and unfavorable pricing dynamics.
Clearly we made the right decision in July to close certain of our manufacturing facilities and reduce overall manufacturing capacity. We will be focusing our efforts on accelerating these previously announced actions to help offset the headwinds outlined above.”
Patterson added, “As a result of the business interruption related to the hurricane and the unfavorable trends observed in our Performance Products and Solutions segment and Europe, we expect it will be a challenge to reach consensus expectations of $0.13 per share for the third quarter, before special items.
Further, it is difficult to forecast our results for the year given the number of uncertainties in the market, and therefore we are projecting a range of performance between $0.36 and $0.41 per share before special items for the fiscal year ending December 31, 2008.”
Additional considerations
• The Company expects third quarter special items to approximate $0.17 - $0.19 per share. The majority of these costs relate to the previously announced manufacturing realignment, although the Company also expects to record incremental legacy environmental costs that increased as a result of higher utility cost estimates necessary to support remediation.
• Net interest expense for the remainder of the year is expected to approximate the second quarter run-rate, as anticipated debt reductions will occur toward the end of the year.
• The Company anticipates an effective tax rate between 33% and 35% for the second half of 2008.
PolyOne Corporation
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
