Specialized polymer materials company
) has increased its quarterly dividend by 20% to 6 cents per
share from the prior payout of 5 cents a share. The increased
dividend will be paid on Apr 5, 2013, to shareholders of record
as of Mar 5, 2013. The move reflects the company's sustained
commitment in offering higher returns to shareholders.
PolyOne is a leading provider of specialized polymer
materials, services and solutions. It has annual sales of $3
billion and operations around the world.
Last month, the company released its fourth-quarter 2012
results with adjusted earnings (excluding special items) of 21
cents per share, in line with the Zacks Consensus Estimate but
roughly 17% higher than the year-ago earnings of 18 cents per
share. Profit, as reported, fell to $3.1 million or 3 cents per
share from $12.3 million or 13 cents per share a year ago.
Revenues came in at $679.4 million in the quarter, up 6% from
$640.4 million in the year-ago quarter, beating Zacks Consensus
Estimate of $663 million.
PolyOne made several achievements in 2012 including the
successful integration of ColorMatrix, a deal to acquire of
Spartech and the completion of the Glasforms buyout.
The roughly $34 million Glasforms acquisition will offer the
company access to advanced composite technology. The company
expects the acquisition to be accretive to its earnings in 2013.
Moreover, the $393 million acquisition of Spartech Corp, which
expected to close in the first quarter of 2013, is expected to be
accretive to the company's adjusted earnings in the first year
itself. The acquisition will enable PolyOne to enter into new
markets including aerospace and security.
PolyOne expects a double digit expansion of adjusted earnings
per share in 2013. The company expects to boost organic revenues
and earnings through new technology launches, application
development and cross-selling by the second half of 2013.
PolyOne currently maintains a Zacks Rank #3 (Hold).
Other companies in the chemical-plastics space with favorable
Zacks Rank are
Westlake Chemical Corp
A. Schulman, Inc.
). While Westlake retains a Zacks Rank #1 (Strong Buy), both
Landec and Schulman hold a Zacks Rank #2 (Buy).
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