PolyOne announces Q2 2014 results

MOSCOW (MRC) -- PolyOne Corporation, a premier global provider of specialized polymer materials, services and solutions, has reported its second quarter results. As expected and to drive earnings growth, the company continued to exit certain unprofitable products associated with the Spartech acquisition completed in March of last year. Accordingly, revenues were USD1.01 billion for the second quarter of 2014, compared to USD1.04 billion in the second quarter of 2013, reported the company on its site.

These actions, coupled with other ongoing initiatives to expand margins, resulted in a 38% increase in adjusted earnings per share to USD0.51 for the second quarter of 2014, up from USD0.37 in the second quarter of 2013. Recently announced asset realignment actions taken in Brazil led to higher restructuring costs this quarter. As a result, GAAP earnings per share totaled USD0.33 for the second quarter of 2014 versus USD0.39 in the second quarter of 2013.

President and chief executive officer Robert M. Pattersonr said, "Mix improvement continues to be at the heart of our transformation as our specialty businesses reached record levels of operating income and profitability for the quarter. Driven by an expanding portfolio of specialty solutions, our underlying mix of earnings has never been stronger with specialty now contributing two-thirds of our segment income."

"Our strong track record of converting earnings to cash continued this quarter as we generated USD100 million of free cash flow," said executive vice president and chief financial officer Bradley C. Richardson.

Mr. Richardson continued, "We ended the quarter with USD261.5 million in cash. This, coupled with our availability under our asset-based revolver, gives us significant capacity to invest in innovation, aggressively pursue acquisition opportunities and deliver cash to shareholders. During the quarter, we repurchased approximately 1.8 million shares at an average price of USD38.15, bringing the total share buyback since early 2013 to 8.2 million shares."

Commenting on the company's outlook, Mr. Patterson said, "We are very pleased with our first half performance in 2014 and the underlying momentum and strength of our earnings growth. While our second quarter is seasonally our strongest, we expect to deliver strong year-over-year double-digit EPS expansion for the balance of 2014. With a growing pipeline of new and differentiated solutions, we are very confident in our ability to continue to create value for our customers and deliver market-beating performance for our shareholders."

As MRC informed previously, PolyOne Corporation has recently presented its specialty portfolio for automotive interiors to designers and engineers. These advanced technologies, including soft-touch materials as well as colorants and special effects, enable customers to design new features that boost consumer appeal and reduce manufacturing complexity.

PolyOne Corporation, with 2013 revenues of USD3.8 billion, is a global provider of specialized polymer materials, services, and solutions. PolyOne is a provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins.
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MOSCOW (MRC) -- CB&I and Clariant, a world leader in specialty chemicals, have announced that their new Ziegler-Natta (ZN) polypropylene catalyst plant in Louisville, Kentucky, is on schedule to begin production in 2015, reported Hydrocarbonprocessing.

The plant is part of a long-term strategic partnership between Clariant’s catalysts business and CB&I’s Lummus Novolen Technology business. Based at Clariant’s largest US production hub, the new facility will combine innovative catalysts jointly developed by both companies with high-capacity output.

The partnership strengthens both companies’ position in polypropylene catalyst and technology by leveraging Clariant’s catalyst research and development and production know-how together with CB&I’s vast knowledge in catalyst, process design and licensing of polypropylene plants.

"The successful joint development of new generation polypropylene catalyst and progressing of Louisville plant are key milestones for our catalyst business," said Stefan Heuser, senior vice president of Clariant. "It strengthens greatly our competitive position in this attractive and fast-growing market."

As a result of joint efforts from research and development teams of Clariant and CB&I, a series of new ZN polypropylene catalysts to be produced in the Louisville plant has been developed recently.

As MRC informed previously, Clariant is making its products available in UL’s Materials Search Engine, Prospector, so that it’s easier for designers and engineers to find color masterbatches they need to make plastics products that comply with UL standards and those of other organizations.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
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MOSCOW (MRC) -- Praxair, through a subsidiary, has expanded its presence in China, signing a long-term contract to supply industrial gases to Nanjing Jinling Huntsman New Materials, a joint venture between Sinopec Jinling and Huntsman, as per Plastemart.

Jinling Huntsman will use the gases to help build a propylene oxide and methyl tertiary butyl ether plant in Nanjing, China. Propylene oxide is a compound used to make polyurethane materials, and methyl tertiary butyl ether is a clean fuel additive.

Praxair will erect the air-separation unit, with a capacity of 900 tons per day of oxygen, in Nanjing Chemical Industrial Park, a state-level interconnected chemical production facility. Praxair will also build a pipeline in the park to help meet the industrial gas requirements of Jinling Huntsman and other customers throughout the park. The air separation is expected to start up in 2016.

"The air separation plant that we will build will establish Praxair as the first industrial gases pipeline supplier in NCIP, with great potential to supply more customers in the new phase of this top-notch chemical park," Dr. Minda Ho, president of Praxair China, said in a statement.

We remind that, as MRC reported earlier, in late 2012, Praxair announced the startup of its first large-scale air separation plant in Volgograd, an industrial region in southern Russia. This plant produces oxygen, nitrogen and compressed air for Kaustik, a division of the Nikochem Group, under a long-term contract. The plant has a capacity of 350 tpd and helped to reduce Kaustik's electricity consumption at the site by approximately 30%The plant will also supply merchant products to local markets such as metals, metal fabrication, glass, automotive, food, electronics and healthcare.

Praxair, which has done business in China more than 20 years, has a strong track record of developing industrial gases supply networks in leading chemical industrial parks such as Shanghai Chemical Industry Park, Huizhou Daya Bay Chemical Industrial Park and Yangzhou Chemical Industry Park, according to Ho.
MRC

MOSCOW (MRC) -- Reliance Industries Ltd, operator of the world’s largest oil refining complex, reported first quarter profit that beat analysts’ estimates and rose the most in a year after refining margin widened, according to Hydrocarbonprocessing.

Net income, excluding that of units, rose 5.5% to 56.5 billion rupees (USD936 million), or 17.50 rupees a share, in the three months ended June from a year earlier, Mumbai-based Reliance said on July 19. That exceeded the 53.7 billion-rupee (USD0.891 billion) median profit estimate of 25 analysts compiled by Bloomberg. Sales rose 10% to 963.5 billion rupees (USD15.98 billion).

The company controlled by billionaire Mukesh Ambani depends on earnings from its two refineries to boost profit as natural gas production from its biggest deposit remains near the lowest in four years. Higher profit is crucial for Reliance which is spending 1.8 trillion rupees (USD0.030 trillion) to expand its polyester, petrochemicals, refining and natural gas businesses and starting a new telecommunications service next year.

We remind that last year, as MRC informed previously, RIL announced that it would invest over Rs 100,000 crore in expansion of its petrochemical capacities and adding value to its refining business. Besides, in October 2012, the company unveiled its plans to expand capacity at its refineries in the western state of Gujarat.

Reliance is also building one of the world’s largest ethylene crackers taking advantage of refinery integration at Jamnagar. This project will be commissioned in H2-2016 and would nearly double the ethylene capacity to 3.3 mln tpa.

Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC

MOSCOW (MRC) -- BASF has increased its prices for 1,6-hexanediol (HDO) in Europe with immediate effect or as contracts allow by EUR150/tonne, as per the company's statement.

The price adjustment will be done to reflect the increased operating, logistics as well as raw material costs and to assure highest levels of product and service quality to its customers.

BASF’s customers use HDO to manufacture industrial coatings including lower volatile organic compound formulations, polyurethanes, adhesives and cosmetics. HDO also serves as a reactive thinner in the formulation of epoxy systems which are used for the efficient production of rotor blades for modern wind turbines as well as construction components for automotive lightweight applications.

BASF operates HDO production facilities at its Verbund sites in Freeport, Texas, and Ludwigshafen, Germany, with an annual production capacity of more than 50,000 tons of HDO.

As MRC wrote before, in late June 2014, BASF has increased its European sales prices for Ethyleneamines (EEA). The price increase will be as follows: ethylenediamine (EDA) - by EUR50/tonne, diethylenetriamine (DETA) - EUR50/tonne or by the equivalent amounts in local currency.

Ethyleneamines are high-class intermediates used in the manufacture of crop protection agents and paper chemicals, surfactants for detergents and cleaning products, process chemicals for gas treatment, lubricants and cement additives as well as active pharmaceutical ingredients.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
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