PolyOne announces its first-quarter results in a press release. With sales flat and profits down the company reduces spending and cuts jobs.
PolyOne notes a revenue of nearly $900 million for the first quarter. Acquisition-related sales growth of 3.5% was canceled out by a 1.5% decline in organic sales and a 2% reduction from unfavorable exchange rates.
“We believe the current market challenges are temporary, and we will see a recovery in the second half of the year,” chairman, president, and CEO Robert Patterson says.
He adds, “While we are encouraged and optimistic, we are not waiting for market improvement to unfold. Accordingly, we have taken actions to reduce costs primarily through targeted workforce reductions and limiting discretionary spending.”
Plastic News reports the company went through “around 40 job reductions in the first quarter, primarily in corporate and managerial positions.” Pulling back on “discretionary spending” includes the use of outside professional services and travel.
“We believe these actions are prudent in the short term, but also balanced, as we are not curtailing our ability to deliver for the long term,” Patterson says.
For more on PolyOne’s first-quarter earnings report, visit www.polyone.com/investor-center/news/polyone-announces-first-quarter-2019-results.