Jul 2 2008
PolyOne Corporation, a premier provider of specialized polymer materials, services and solutions, announced on June 30, 2008 the streamlining of its management and segment organization as well as the presentation of its financial results.
Producer Services, which offers compounding expertise and multiple manufacturing platforms to resin producers and processors, will be combined with Geon Performance Polymers to form the Performance Products and Solutions operating segment. This segment will be led by Rob Rosenau, senior vice president and general manager.
In addition, North American Color and Additives and Specialty Inks and Polymer Systems will be combined into a new operating segment named Specialty Color, Additives and Inks. The newly created segment will be led by John Van Hulle, vice president and general manager.
The Company also announced that it has defined gross margin as a line item on the face of its externally presented financial statements.
"These changes represent another step in our transformation process and improve investor transparency," said Stephen D. Newlin, chairman, president and chief executive officer. "By streamlining our management structure we are able to more closely align our reporting organization with our three platforms. We further believe that investors will welcome the enhanced gross margin and operating income disclosures that highlight our specialty focus."
The Company frequently discusses its businesses in terms of three strategic platforms - Performance Products and Solutions, PolyOne Distribution and Specialty. The Performance Products and Solutions and PolyOne Distribution platforms will also be reportable segments.
The Specialty platform will consist of three reportable segments - International Color and Engineered Materials, Specialty Engineered Materials and Specialty Colors, Additives and Inks.
The Resin and Intermediates reportable segment, which consists almost entirely of PolyOne's 50 percent equity interest in SunBelt Chlor-Alkali Partnership (and the Company's former 24 percent equity interest in Oxy Vinyls LP through its disposition date of July 6, 2007), will no longer be discussed as part of the Performance Products and Solutions platform.
The chart below illustrates this organization in the context of the Company's operating segments and reporting units:
PLATFORMS
- Operating Segments
* Reporting Units
PERFORMANCE PRODUCTS AND SOLUTIONS
- Performance Products and Solutions
* Geon Compounds
* Specialty Resins
* Specialty Coatings
* Producer Services
POLYONE DISTRIBUTION
- PolyOne Distribution
SPECIALTY
- International Color and Engineered Materials
- Specialty Engineered Materials
* North American Engineered Materials
* GLS
- Specialty Color, Additives and Inks
* North American Color and Additives
* Specialty Inks and Polymers
Resin and Intermediates will continue to be a reportable segment, but will not be discussed as part of the Performance Products and Solutions platform.
To facilitate investor analysis, the Company has included attachments with this release that recast historical information according to the new structure.