Specialty polymer materials maker
) announced the sale of its vinyl dispersion, blending and
suspension resin assets to Mexichem, S.A.B. de C.V. for $250
million in cash. The sale is subject to regulatory approvals and
fulfillment of other closing conditions.
PolyOne's resin assets formed a part of its Performance Products
and Solutions segment and are involved in the direct manufacture
of base resins. PolyOne stated that its decision to sales the
assets is a part of its strategy to realign its portfolio.
PolyOne's resin assets generated revenues of $147 million in
2012. The sale is expected to dilute the earnings of PolyOne by
about 22 cents per share in 2013. However, PolyOne's earnings
target for 2015 to remain at $2.50 per share.
The divestiture of the base resin assets is consistent with
PolyOne's strategy of focusing on its core competence of material
science formulation for specialty applications. This is in sync
with the improvement strategy, which has delivered substantial
shareholder value over the last five years.
PolyOne is a leading provider of specialized polymer materials,
services and solutions. It has annual sales of $3 billion and
operations around the world.
In Jan 2013, 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 the 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.
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 Tredegar and Westlake retain a Zacks Rank #1 (Strong
Buy), Schulman holds a Zacks Rank #2 (Buy).
POLYONE CORP (POL): Free Stock Analysis
SCHULMAN(A) INC (SHLM): Free Stock Analysis
TREDEGAR CORP (TG): Free Stock Analysis
WESTLAKE CHEM (WLK): Free Stock Analysis
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