Basic Materials and Chemicals Sector Ideas

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>>> PolyOne's Turkey Facility Comes Online



By Zacks Equity Research

December 17, 2013


http://finance.yahoo.com/news/polyones-turkey-facility-comes-online-153004628.html



Specialty polymer materials maker PolyOne Corporation (POL) has commenced production in its new facility in Turkey. Based in Istanbul, the facility has been geared to offer high-level production, service and flexibility characteristics required by the company’s customers.

The operations involve increased capabilities to better serve PolyOne’s customers with an extended portfolio of specialty polymer formulations. Apart from offering state-of-the-art manufacturing, the new location provides a specially designed layout for customer meetings, training and collaboration.

PolyOne is seeing increasing demand for its solutions in Turkey. It is among the fastest growing markets for thermoplastics globally. According to the Turkish plastics industry association – Pagev – the country’s plastics industry is growing at more than 10% annually. PolyOne’s specialty polymer solutions address the needs of original equipment manufacturers and plastics processors in the region.

PolyOne, which currently retains a Zacks Rank #3 (Hold), is a leading provider of specialized polymer materials, services and solutions. It has annual sales of $2.9 billion and operations around the world.

PolyOne reported healthy third-quarter 2013 results in Oct 2013. Its profit from continuing operations went up roughly 20% year over year to $23.2 million or 24 cents per share. Adjusted earnings jumped 29% year over year to 36 cents per share.

Revenues shot up 43% year over year to $1 billion from $708 million a year ago on the heels of the acquisitions of Spartech and Glasforms and organic growth across specialty and distribution businesses.

PolyOne believes that it can continue to deliver double-digit adjusted earnings per share growth in the final quarter of 2013. Based on its current trajectory of organic growth and upside from Spartech synergy capture, the company backed its target of achieving adjusted earnings of $2.50 per share by 2015.

Other companies in the chemical and related industries worth considering include Asahi Kasei Corporation (AHKSY), Westlake Chemical Corp. (WLK) and A. Schulman, Inc. (SHLM). While Asahi Kasei holds a Zacks Rank #1 (Strong Buy), both Westlake Chemical and A. Schulman carry a Zacks Rank #2 (Buy).

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