SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of
report (Date of earliest event reported): September 28, 2007
POLYONE
CORPORATION
(Exact
name of registrant as specified in charter)
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Ohio
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1-16091
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34-1730488
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(State
or other jurisdiction
of
incorporation)
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(Commission
File
Number)
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(I.R.S.
Employer
Identification
No.)
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PolyOne
Center, 33587 Walker Road, Avon Lake, Ohio
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44012
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including area code: (440)
930-1000
(Former name or former address, if changed since last report.)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing requirements of the registrant under any of the following
provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement
communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13E-4(c))
Item
7.01 - Regulation FD Disclosure.
On
September 28, 2007, the Registrant issued a press release, furnished herewith
as
Exhibit 99.1, updating its third-quarter 2007 financial outlook. The press
release shall not be deemed to be "filed" under the Securities Exchange Act
of
1934.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits.
Exhibit
99.1 - Press release dated September 28, 2007, furnished herewith.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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By:
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/s/
W. David Wilson
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W.
David Wilson
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Senior
Vice President and Chief Financial
Officer
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Dated:
September 28, 2007
News
Release
PolyOne
Updates Third-Quarter 2007 Outlook
CLEVELAND–
September 28,
2007 - PolyOne Corporation (NYSE: POL)
today
updated its outlook for the third quarter ending September 30, 2007.
The
Company expects third-quarter consolidated sales to increase modestly compared
with the third quarter of 2006, despite a marked downturn in building and
residential construction.
Aggregate
sales for the non-vinyl businesses are projected to grow 6% to 8% compared
with
the third quarter of 2006, generally in line with the prior outlook provided
in
the Company’s July 2007 second quarter earnings release. Operating income in
aggregate for these businesses is projected to increase significantly from
the
same period a year ago as a result of expanded gross margin, which, as a
percentage of sales, is expected to demonstrate strong year-over-year
improvement. Consistent with its first half performance, International Color
and
Engineered Materials sales and operating income are expected to demonstrate
double-digit growth compared with the third quarter 2006, despite a recent
inventory correction in the Asian electronics market.
The
Vinyl
Business segment is expected to experience a 10% to 12% sales decline compared
with the third quarter of 2006. This updated estimate reflects a modest
reduction to the Company’s prior outlook. Depressed construction market
conditions, coupled with raw material cost increases, will materially decrease
Vinyl Business segment earnings compared with the third quarter of 2006.
In
the
Resin and Intermediates segment, PolyOne projects that SunBelt Chlor-alkali
margins will remain relatively strong and moderately increase compared with
second-quarter 2007 levels. Oxy Vinyls, LP results will no longer be reported
following its sale on July 6, 2007.
The
Company expects third-quarter “Corporate and eliminations,” excluding
non-recurring charges, to be between $10 million and $12 million, in line with
the first-half 2007 average.
Additional
considerations:
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·
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In
the third quarter of 2006, the Company realized a $6.8 million net
benefit
from legal settlements and adjustments to related reserves. The Company
does not anticipate a similar benefit this year.
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·
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The
Company projects that interest expense for the third quarter of 2007
will
decline sequentially by approximately $5 million as a result of redeeming
the entire $241.4 million outstanding balance of the 2010 Senior
Notes in
the second and third quarters. The redemptions are expected to result
in
an annual interest expense savings of approximately $25.6 million.
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·
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The
completion of the OxyVinyls divestiture will result in a $31.5 million
non-recurring tax benefit in the third quarter from the reversal
of
deferred tax liabilities. Partially offsetting this benefit will
be debt
premium costs and the write-off of unamortized debt issuance fees
totaling
$9.1 million associated with the redemption of the $141.4 million
outstanding balance of the Senior
Notes.
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Third-quarter
2007 Earnings Release and Conference Call
PolyOne
intends to release its third-quarter earnings on Monday, October 29, 2007,
and
host a conference call at 9:00 a.m. Eastern time on Tuesday, October 30, 2007.
The conference dial-in number is 800-901-5218 (domestic) or 617-786-4511
(international), passcode 55390604, conference topic: Third-quarter 2007 PolyOne
Earnings Conference Call. The replay number is 888-286-8010 (domestic) or
617-801-6888 (international). The
passcode for the replay is 23235125. The call will be broadcast live and then
be
available via replay until Tuesday, November 13, 2007, on the Company’s Web site
at www.polyone.com.
About
PolyOne
PolyOne
Corporation, with 2006 annual revenues of $2.6 billion, is a leading global
provider of specialized polymer materials, services and solutions. Headquartered
in northeast Ohio, PolyOne has operations in North America, Europe, Asia and
Australia, and joint ventures in North America and South America. See
www.polyone.com
for
additional information on PolyOne.
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John
Daggett
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Director
of Corporate Communications
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440.930.3162
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Investor
Contact:
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W.
David Wilson
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Senior
Vice President & Chief Financial Officer
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440-930-3204
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Forward-looking
Statements
In
this
press release, statements that are not reported financial results or other
historical information are “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
give current expectations or forecasts of future events and are not guarantees
of future performance. They are based on management’s expectations that 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 statements. You can identify these statements by the fact that
they do not relate strictly to historic or current facts. They use words such
as
“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and
other words and terms of similar meaning in connection with any discussion
of
future operating or financial performance and/or sales. In particular, these
include statements relating to future actions; prospective changes in raw
material costs, product pricing or product demand; future performance; results
of current and anticipated market conditions and market strategies; sales
efforts; expenses; the outcome of contingencies such as legal proceedings;
and
financial results. Factors that could cause actual results to differ materially
include, but are not limited to:
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the
effect on foreign operations of currency fluctuations, tariffs,
nationalization, exchange controls, limitations on foreign investment
in
local businesses and other political, economic and regulatory risks;
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changes
in polymer consumption growth rates within the U.S., Europe or Asia
or
other countries where PolyOne conducts business;
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changes
in global industry capacity or in the rate at which anticipated changes
in
industry capacity come online in the polyvinyl chloride (PVC),
chlor-alkali, vinyl chloride monomer (VCM) or other industries in
which
PolyOne participates;
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fluctuations
in raw material prices, quality and supply and in energy prices and
supply, in particular fluctuations outside the normal range of industry
cycles;
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production
outages or material costs associated with scheduled or unscheduled
maintenance programs;
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the
cost of compliance with environmental laws and regulations, including
any
increased cost of complying with new or revised laws and
regulations;
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unanticipated
developments that could occur with respect to contingencies such
as
litigation and environmental matters, including any developments
that
would require any increase in our costs and/or reserves for such
contingencies;
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an
inability to achieve or delays in achieving or achievement of less
than
the anticipated financial benefit from initiatives related to cost
reductions and employee productivity goals;
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an
inability to raise or sustain prices for products or
services;
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an
inability to maintain appropriate relations with unions and employees
in
certain locations in order to avoid business disruptions;
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any
change in any agreements with product suppliers to PolyOne Distribution
that prohibits PolyOne from continuing to distribute a supplier’s products
to customers; and
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other
factors affecting our business beyond our control, including, without
limitation, changes in the general economy, changes in interest rates
and
changes in the rate of inflation.
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We
cannot
guarantee that any forward-looking statement will be realized, although we
believe we have been prudent in our plans and assumptions. Achievement of future
results is subject to risks, uncertainties and inaccurate assumptions. Should
known or unknown risks or uncertainties materialize, or should underlying
assumptions prove inaccurate, actual results could vary materially from those
anticipated, estimated or projected. Investors should bear this in mind as
they
consider forward-looking statements.
We
undertake no obligation to publicly update forward-looking statements, whether
as a result of new information, future events or otherwise. You are advised,
however, to consult any further disclosures we make on related subjects in
our
reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and
Exchange Commission. You should understand that it is not possible to predict
or
identify all risk factors. Consequently, you should not consider any list to
be
a complete set of all potential risks or uncertainties. (Ref. #92707)
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