UPDATE 1-PolyOne Q4 EPS down 38 pct; sales to fall
(Adds detail, outlook)
NEW YORK, Jan 30 (Reuters) - PolyOne Corp. (POL.N), a U.S. maker of specialty polymer products, said fourth-quarter earnings per share fell 38 percent, dampened by "a significant decline" in second-half resins and intermediates demand.
Cleveland-based PolyOne said it expects demand to "rebound seasonally" in the first quarter of 2007, but said it will continue to be "adversely affected by the sluggishness in the automotive and construction-related" markets.
It said it expects North American sales to drop 4 percent to 6 percent in the first quarter 2007 from the comparable quarter a year earlier.
Net income fell to $14.4 million, or 15 cents a share in the fourth quarter, from $21.7 million, or 24 cents a share in the quarter a year earlier.
Sales declined 2 percent to $595.2 million in the quarter.
The company was expected to post fourth quarter earnings per share of 6 cents, according to Reuters Estimates.
PolyOne said the downdraft in resins and intermediates performance reflects "the volatile nature of a commodity business."
However, it said its international color and engineered materials divisions sales grew 24 percent in the fourth quarter from a year ago due to global expansion, particularly in Asia.
Operating income in the fourth quarter fell to $22.4 million from $38 million in the quarter a year ago.
