PolyOne Corporation (NYSE:POL) Q2 2019 Earnings Conference Call - Final Transcript

Jul 24, 2019 • 08:00 am ET


PolyOne Corporation (NYSE:POL) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the PolyOne Corporation Second Quarter 2019 Conference Call. My name is Katherine, and I will be your operator for today. [Operator Instructions]

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

Joe Di Salvo

Thank you, Katherine. 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 current 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 in 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 from the most comparable GAAP financial measures.

Operating results referenced during today's call will be comparing the second quarter of 2019 to the second quarter of 2018 unless otherwise stated. Joining me today on 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

Well, thanks, Joe, and good morning. At $0.74, we finished the quarter at the high end of the range we communicated when we raised our projections in early June, and this represents a 4% increase over last year.

Sequentially, margins expanded in all segments when compared to the first quarter of this year. This helped us to offset much of the weakness we continue to experience in certain end markets and regions as well as unfavorable foreign exchange. And as a result, we are now increasing our outlook for the balance of 2019, such that we expect EPS to expand 4% to 6% for the full year. I have more to say on our outlook in a moment but for now we'll focus on current results and initiatives.

Compared to the prior year's second quarter, our Engineered Materials segment led our performance with a 22% increase in operating income. I am very pleased with the investments we have made in composites, wire and cable applications, which have helped us to drive this growth. As you know, this has been a significant area of focus for us as we build out our portfolio of more specialized materials and solutions in this segment.

I am also pleased with the expansion of our sustainable solutions portfolio, which was up 7% year-to-date versus last year.