Specialized polymer materials company PolyOne Corporation (POL - Free Report) has increased its quarterly dividend by 20% to 6 cents per share from the prior payout of 5 cents a share. The increased dividend will be paid on Apr 5, 2013, to shareholders of record as of Mar 5, 2013. The move reflects the company’s sustained commitment in offering higher returns to shareholders.
PolyOne is a leading provider of specialized polymer materials, services and solutions. It has annual sales of $3 billion and operations around the world.
Last month, the company released its fourth-quarter 2012 results with adjusted earnings (excluding special items) of 21 cents per share, in line with the Zacks Consensus Estimate but roughly 17% higher than the year-ago earnings of 18 cents per share. Profit, as reported, fell to $3.1 million or 3 cents per share from $12.3 million or 13 cents per share a year ago.
Revenues came in at $679.4 million in the quarter, up 6% from $640.4 million in the year-ago quarter, beating Zacks Consensus Estimate of $663 million.
PolyOne made several achievements in 2012 including the successful integration of ColorMatrix, a deal to acquire of Spartech and the completion of the Glasforms buyout.
The roughly $34 million Glasforms acquisition will offer the company access to advanced composite technology. The company expects the acquisition to be accretive to its earnings in 2013.
Moreover, the $393 million acquisition of Spartech Corp, which expected to close in the first quarter of 2013, is expected to be accretive to the company’s adjusted earnings in the first year itself. The acquisition will enable PolyOne to enter into new markets including aerospace and security.
PolyOne expects a double digit expansion of adjusted earnings per share in 2013. The company expects to boost organic revenues and earnings through new technology launches, application development and cross-selling by the second half of 2013.
PolyOne currently maintains a Zacks Rank #3 (Hold).
Other companies in the chemical-plastics space with favorable Zacks Rank are Westlake Chemical Corp. (WLK - Free Report) , Landec Corp. (LNDC - Free Report) and A. Schulman, Inc. (SHLM - Free Report) . While Westlake retains a Zacks Rank #1 (Strong Buy), both Landec and Schulman hold a Zacks Rank #2 (Buy).