PolyOne’s revenue up nine per cent in 2018
But softening demand conditions in the fourth quarter most heavily impacted the company’s Performance Products and Solutions, and Specialty Engineered Materials segments.
Driven by what it calls “organic growth of 5%”, specialty polymer maker PolyOne Corp. reported revenue of US$3.53 billion in 2018, an increase of almost 9% compared to 2017.
Avon Lake, Ohio-based PolyOne also reported fourth-quarter 2018 profits of US$11.4 million.
“This growth is a testament to the execution of our four-pillar strategy, our world-class service and the dedication of our global associates,” Robert Patterson, PolyOne’s chairman, president and CEO, said in a statement. “Our investments in commercial resources and specialty acquisitions continue to drive our expansion with our Color, Additives and Inks segment leading the way. For the year, Color increased revenue and operating income by 17 per cent and 14 per cent, respectively.”
Softening demand conditions in the fourth quarter most heavily impacted PolyOne’s Performance Products and Solutions (PP&S) and Specialty Engineered Materials (SEM) segments, the company said. “Specifically, end markets negatively impacting PP&S were building & construction and appliance. SEM was impacted by a more recent decline in demand in Europe and Asia, primarily in transportation and consumer end markets,” it said.
“Many companies are citing softening conditions in certain end markets and geographies,” Patterson said. “We certainly saw this at the end of 2018 and expect these conditions to continue into the beginning of this year. Fortunately, with the investments we have made, the breadth of our portfolio of technologies, and the organization we have in place, we are better positioned to navigate these near-term dynamics than ever before.”
Patterson also noted that PolyOne had had a busy year in acquisitions in 2018, having purchased two specialty companies, IQAP and PlastiComp. PolyOne also completed a third acquisition, Fiber-Line, in January 2019, which is expected to add nearly US$100 million in revenue in 2019 to Specialty Engineered Materials segment.