PolyOne Corp. reports fourth-quarter profit vs. big year-earlier loss

PolyOne Corp. (NYSE: POL) has reported a fourth-quarter profit versus a big loss a year earlier, when the company took various charges against earnings.

The polymer producer posted net income in the latest fourth quarter of $24 million, or 25 cents per diluted share, which compared to a loss of $282.6 million, or $3.07 a share, in the fourth quarter of 2008. PolyOne said the loss in the year-ago quarter includes charges of $170 million for goodwill impairment, $105 million related to income tax valuation allowances, and $15 million related to special items.

Commenting on the company's near-term outlook, PolyOne senior vice president and chief financial officer Robert Patterson said in a statement that the company is “cautiously optimistic about the economy and we believe we are seeing positive momentum.”

“We acknowledge government stimulus programs may have helped the economy in the back half of 2009 and this may not continue this year,” Mr. Patterson said. “Nevertheless, we expect to grow our strategic platform earnings through top-line growth in 2010. This earnings expansion will likely be partially offset by a decline in equity earnings from our SunBelt joint venture and could be further challenged by raw material inflation."

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