PolyOne Corporation (NYSE:POL) Q1 2019 Earnings Conference Call - Final Transcript

Apr 17, 2019 • 08:00 am ET


PolyOne Corporation (NYSE:POL) Q1 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the PolyOne Corporation First Quarter 2019 Conference Call. My name is Brian and I'll be your operator for today. At this time, all participants are in a listen-only mode. We will have a question-and-answer session at the end of the conference. As a reminder, this conference call is being recorded for replay purposes.

At this time, I would like to turn the call over to Joe Di Salvo, Vice President, Treasurer, Investor Relations. Please proceed.

Joe Di Salvo

Thank you, Brian. Good morning, and welcome to everyone joining us on the call today. Before beginning, we would like to remind you that statements made during this conference call may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements will give expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations and involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed and or implied by the forward-looking statement. Some of these risks and uncertainties can be found in the Company's filings with the Securities and Exchange Commission, as well as in today's press release.

During the discussion today, the Company will use both GAAP and non-GAAP financial measures. Please refer to the earnings release posted on the PolyOne website, where the Company describes the non-GAAP measures and provides a reconciliation for the most comparable GAAP financial measures. Operating results referenced during today's call will be comparing the fourth quarter of 2019 to the fourth quarter of 2018, unless otherwise stated.

Joining me today in our call is our Chairman, President and Chief Executive Officer, Bob Patterson; and Executive Vice President and Chief Financial Officer, Brad Richardson.

Now, I will turn the call over to Bob.

Robert M. Patterson

Thanks, Joe, and good morning everyone. Today we reported adjusted earnings per share of $0.64 for the first quarter, which compares to $0.68 for the first quarter of last year. This is only the second time in nearly 10 years, since we've had a year-over-year decline in quarterly EPS. Like many companies in our space, our results for the first quarter were negatively impacted by the weaker demand in certain end markets and regions, and unfavorable foreign exchange. Most notably, a decline in automotive related demand in China, in Europe, were the primary drivers in an overall sales decline of 6% and 8% respectively in those regions, which impacted our Color and Engineered Materials segments. In addition construction and appliance-related sales in North America fell significantly, primarily impacting our performance, products and solutions segment, weather likely play a role as customers believe the construction cycle was delayed due to colder than normal temperatures in the U.S.

However, underlying our results in a challenging macro conditions are several encouraging proof points that the investments we have been making better position us to navigate these challenges, but more importantly, position us for long-term growth