PolyOne Updates Second-quarter 2008 Outlook

Company Expects Earnings Improvement

CLEVELAND, June 19 /PRNewswire-FirstCall/ -- PolyOne Corporation (NYSE:
POL) today updated its outlook for the second quarter ending June 30, 2008.
The Company expects second-quarter consolidated sales to increase 7% to 9%
compared with the second quarter of 2007, despite challenging demand trends in
the North American housing and automotive markets. This projection is
slightly higher than the Company's original estimate of 6% to 8% sales growth.
Second-quarter 2008 earnings before special items are expected to show modest
improvement over the same period a year ago earnings before special items and
to increase sequentially from first-quarter 2008 earnings before special
items.
Aggregate sales for PolyOne's Specialty platform, including sales from GLS
Corporation, are projected to grow nearly 25% in the quarter compared with the
second quarter of 2007. GLS was acquired in January 2008 and represents
approximately 60% of the Specialty growth for the second quarter, similar to
the first quarter of 2008. PolyOne's Specialty platform consists of
International Color and Engineered Materials, Specialty Engineered Materials,
North American Color and Additives and Specialty Inks and Polymer Systems.
Operating income in the aggregate for these businesses is projected to grow
significantly from the same period a year ago, reflecting both margin
expansion and an increased sales base.
International Color and Engineered Materials sales in the second quarter
are expected to demonstrate double-digit growth compared with the same period
a year ago, primarily due to favorable foreign currency translation. While
International demand is generally intact, sales in the latter part of the
quarter could be adversely affected by delivery disruptions due to freight
carrier strikes in Europe. In Asia, pockets of demand softening continue to
be evident for customers who primarily export to North America. International
segment operating income, driven by stronger operating margins, is expected to
increase significantly compared with the second quarter of 2007.
For PolyOne Distribution, the Company anticipates meaningful increases in
both sales and operating income during the second quarter of 2008 compared
with the second quarter of 2007, with earnings impacted favorably by targeted
growth efforts in key end markets.
Second-quarter 2008 sales for the Performance Products and Solutions
platform are expected to decline 6% to 8% compared with the second quarter of
2007. The Performance Products and Solutions platform consists of Geon
Performance Polymers, Producer Services and Resin and Intermediates.
Operating income for Performance Products and Solutions is anticipated to be
slightly above first-quarter 2008 performance, although significantly below
the second-quarter 2007 level. This decrease is due primarily to lower demand
in the North American housing, construction and automotive markets compared
with the same period a year ago, and margin pressure caused by higher raw
material and energy costs not fully offset by increased pricing.
SunBelt earnings are projected to increase sequentially compared with the
first quarter of 2008, but decline compared with the second quarter of 2007.
Strong chlor-alkali margins, driven by increasing caustic prices, are expected
to be more than offset by weak end-market demand for chlorine derivatives
compared with the same period last year.
Additional considerations:
-- The Company expects second-quarter Corporate and eliminations to be
between $11 million and $13 million, down from the prior-year quarter
primarily due to adjustments in 2007 to associated operating reserves.
-- The Company anticipates net financing expenses to be approximately $11
million in the second quarter of 2008. Second-quarter 2007 net financing
expenses were $14.7 million, before consideration of a $1.1 million special
item. The lower expense is due to the redemption in 2007 of $241.4 million of
senior notes due 2010, partially offset by debt incurred in connection with
the acquisition of GLS.
-- The Company anticipates an effective tax rate between 33% and 35%.

Second-quarter 2008 Earnings Release and Conference Call
PolyOne intends to release its second-quarter earnings on Wednesday,
August 6, 2008, and host a conference call at 9:00 a.m. Eastern time on
Thursday, August 7, 2008. The conference dial-in number is 866-543-6403
(domestic) or 617-213-8896 (international), passcode 35865076, conference
topic: Second-quarter 2008 PolyOne Earnings Conference Call. The replay
number is 888-286-8010 (domestic) or 617-801-6888 (international). The
passcode for the replay is 12202246. The call will be broadcast live and then
be available via replay until Thursday, August 14, 2008, on the Company's web
site at www.polyone.com .
About PolyOne
PolyOne Corporation, with annual revenues of more than $2.7 billion, is a
leading global provider of specialized polymer materials, services and
solutions. Headquartered outside of Cleveland, Ohio USA, PolyOne has
operations around the world. For additional information on PolyOne, visit our
new website at www.polyone.com .
Forward-looking Statements
In this press release, statements that are not reported financial results
or other historical information are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements give current expectations or forecasts of future events and
are not guarantees of future performance. They are based on management's
expectations that involve a number of business risks and uncertainties, any of
which could cause actual results to differ materially from those expressed in
or implied by the forward-looking statements. You can identify these
statements by the fact that they do not relate strictly to historic or current
facts. They use words such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "believe," and other words and terms of similar meaning in
connection with any discussion of future operating or financial performance
and/or sales. In particular, these include statements relating to future
actions; prospective changes in raw material costs, product pricing or product
demand; future performance; results of current and anticipated market
conditions and market strategies; sales efforts; expenses; the outcome of
contingencies such as legal proceedings; and financial results, including
those of GLS. Factors that could cause actual results to differ materially
include, but are not limited to:
-- the effect on foreign operations of currency fluctuations, tariffs,
nationalization, exchange controls, limitations on foreign investment in local
businesses and other political, economic and regulatory risks;
-- changes in polymer consumption growth rates within the U.S., Europe or
Asia or other countries where PolyOne conducts business;
-- changes in global industry capacity or in the rate at which anticipated
changes in industry capacity come online in the polyvinyl chloride (PVC),
chlor-alkali, vinyl chloride monomer (VCM) or other industries in which
PolyOne participates;
-- fluctuations in raw material prices, quality and supply and in energy
prices and supply, in particular fluctuations outside the normal range of
industry cycles;
-- production outages or material costs associated with scheduled or
unscheduled maintenance programs;
-- the cost of compliance with environmental laws and regulations,
including any increased cost of complying with new or revised laws and
regulations;
-- unanticipated developments that could occur with respect to
contingencies such as litigation and environmental matters, including any
developments that would require any increase in our costs and/or reserves for
such contingencies;
-- an inability to achieve or delays in achieving or achievement of less
than the anticipated financial benefit from initiatives related to cost
reductions and employee productivity goals;
-- an inability to raise or sustain prices for products or services;
-- an inability to maintain appropriate relations with unions and
employees in certain locations in order to avoid business disruptions;
-- any change in any agreements with product suppliers to PolyOne
Distribution that prohibits PolyOne from continuing to distribute a supplier's
products to customers;
-- the ability to successfully integrate GLS;
-- the ability to successfully integrate Ngai Hing PlastChem, and
-- other factors affecting our business beyond our control, including,
without limitation, changes in the general economy, changes in interest rates
and changes in the rate of inflation.
We cannot guarantee that any forward-looking statement will be realized,
although we believe we have been prudent in our plans and assumptions.
Achievement of future results is subject to risks, uncertainties and
inaccurate assumptions. Should known or unknown risks or uncertainties
materialize, or should underlying assumptions prove inaccurate, actual results
could vary materially from those anticipated, estimated or projected.
Investors should bear this in mind as they consider forward-looking
statements.
We undertake no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise. You are
advised, however, to consult any further disclosures we make on related
subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the
Securities and Exchange Commission. You should understand that it is not
possible to predict or identify all risk factors. Consequently, you should not
consider any list to be a complete set of all potential risks or
uncertainties. (Ref. #32108)
SOURCE PolyOne Corporation

Investors, Robert M. Patterson, Senior Vice President & Chief Financial
Officer, PolyOne Corporation, +1-440-930-3302