PolyOne operates in five segments: Global Specialty Engineered Materials, which provides polymer formulations, services and solutions; Global Color, Additives and Inks, which provides color and additive concentrates, and inks, plastisols, and vinyl slush molding solutions; Designed Structures and Solutions, which provides solutions in engineered polymer structures, rigid barrier packaging and specialty cast acrylics; Performance Products and Solutions, which provides products and services for vinyl molding and extrusion processors, and contract manufacturing and outsourced polymer manufacturing services; and PolyOne Distribution, which distributes engineering and commodity grade resins.
PolyOne has no economic moat. It relies on superior execution to achieve success.
PolyOne's top-line continues to struggle. The exit of certain product lines in Brazil and discontinuation of unprofitable product lines reduced sales. POL is making large cuts to operating expenses. Share repurchases will provide an extra lift. The Distribution segment is performing well. This segment distributes more than 3,500 compounds, including non-PolyOne offerings. We expect the positive trend to continue this year. We are optimistic about the 2018-2020 horizon. It is currently sorting through the businesses acquired in recent years, divesting less profitable ones. This process should turn PolyOne into a smaller, but more efficient, company.
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Broad portfolio of performance and specialty engineered materials
Global footprint driving growth
Further goodwill impairment charges could adversely impact the company's results of operations
Intense competition may affect PolyOne's sales growth or cash flows
Stringent environmental regulations may increase the company's costs and liabilities
Launch of innovative products likely to help the company in its incremental revenue growth
Realignment of manufacturing assets may increase PolyOne’s productivity
Expansion of operations likely to help PolyOne in enhancing its geographic presence
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