) has hiked its quarterly cash dividend by 33% to 8 cents per
share from the prior payout of 6 cents. The increased dividend
will be paid on Jan 9, 2014, to stockholders of record as of Dec
This is PolyOne's third dividend increase and a doubling since
it re-instituted its quarterly cash dividend at 4 cents per share
in Mar 2011.
The dividend hike was backed by PolyOne's healthy earnings.
Its adjusted earnings per share jumped 29% year over year to 36
cents per share in third quarter of 2013 from 28 cents a year
ago. This represented the 16th consecutive quarter of
double-digit adjusted earnings per share increase.
Revenues also increased 43% year over year to $1 billion from
$708 million a year ago. The increase in revenues was due to the
acquisitions of Spartech and Glasforms along with organic growth
in Specialty and Distribution.
The dividend increase is also a testimony to the company's
healthy balance sheet. It also testifies PolyOne's
commitment to meet aggressive targets and create shareholders'
value. PolyOne ended the third quarter with $323 million of cash
and over $630 million of liquidity.
PolyOne, holding a strong liquidity position, expects to
continue to deploy cash by investing in research and development,
commercial resources, realigning the Spartech assets and in
selective merger and acquisition. The company further expects to
continue returning cash to its shareholders through dividend and
PolyOne accredits its four-pillar strategy for the strong
third-quarter results. The company's commitment to execute this
strategy enables it to achieve new record profitability and
earnings per share.
While PolyOne considers fourth-quarter 2013 to be seasonally
the weakest, the company believes it can continue to deliver
double-digit adjusted earnings per share growth in the quarter.
The projection is attributable to current trajectory of organic
growth and upside from Spartech synergy capture. PolyOne has
reaffirmed its goal to achieve adjusted earnings of $2.50 per
share by 2015.
PolyOne, which is among the prominent players in the
chemical-plastics industry along with
Kraton Performance Polymers Inc.
), is a leading provider of specialized polymer materials,
services and solutions.
PolyOne currently retains a Zacks Rank #3 (Hold).
Other companies in the chemical-plastics space worth
Westlake Chemical Corp.
A. Schulman, Inc.
). Both carry a Zacks Rank #2 (Buy).
KRATON PERFORM (KRA): Free Stock Analysis
POLYONE CORP (POL): Free Stock Analysis
SCHULMAN(A) INC (SHLM): Free Stock Analysis
WESTLAKE CHEM (WLK): Free Stock Analysis
To read this article on Zacks.com click here.