04/24/2019

Plastics News by Plasteurope.com

POLYONE: Job cuts announced after weak first quarter / Acquisitions alone prevent decline in sales

The start of fiscal 2019 could have been more gratifying for US compounder and distributor PolyOne (Cleveland, Ohio; www.polyone.com). The company recorded first-quarter sales of USD 900m (EUR 800m), which were on a similar level compared to the same quarter of 2018, but this was due solely to acquisitions. Organic sales fell 1.5% and currency exchange rates added another 2% decrease. PolyOne's weak second half of 2018 is continuing on into 2019 see Plasteurope.com of 04.02.2019 and CEO Robert Patterson sees the need to cut jobs and spending.

Low demand dampened sales, mainly due to the weak automotive industry in Europe and China. Demand in the North American construction sector also remained below that of the previous year, said Patterson.
Composites and E&E components fare well
In contrast, the company's composites business grew by 10% in the first quarter of 2019. Here, the group benefited from strong demand for consumer goods and E&E products. PolyOne's acquisition in January of fibre and composites manufacturer Fiber-Line (Hatfield, Pennsylvania / USA; www.fiber-line.com see Plasteurope.com of 11.01.2019) was one contribution to sales, with the growth of 5G mobile networks being a factor here.

In 2018, PolyOne expanded its business in several areas through takeovers. At the beginning of last year, the company acquired Spain's Iqap Masterbatch (Les Masies de Roda; www.iqapgroup.com see Plasteurope.com of 09.01.2018). In the summer, it bought long-fibre thermoplastic (LFT) compounder PlastiComp (Winona, Minnesota / USA; www.plasticomp.com see Plasteurope.com of 05.06.2018), and not long afterward came the Fiber-Line acquisition.

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