PolyOne 2009 Annual Report

To Our
Shareholders
PolyOne is the leanest and strongest we
have ever been. Our confidence, resolve
and focus have reached all-time highs.
We are a more efficient and streamlined organization than
ever before. Taken together, we are approaching our peak
performance and are committed to delivering consistent,
double-digit growth.
Amidst the unprecedented challenges of 2009—without
clarity on the duration of the economic crisis and uncertain
where demand decline in our end markets would trough
—PolyOne reshaped and fortified the Company. We
strengthened our balance sheet, focused on scaling our
organizational size and structure to global demand, and
far surpassed consensus earnings estimates. In trial
after trial, our people flawlessly executed on our strategy,
proving we have both the right team and plan in place.
Given the challenging economic environment, our year-end
results were nothing short of outstanding. Full year earnings
were well beyond analyst estimates and even our own
expectations. With annual sales of $2.1 billion, a 25% yearover-year
decline, we delivered earnings per share before
special items of $0.37. We are very proud of these results
which were just $0.04 shy of 2008 on a comparable basis.
As we enter 2010, our momentum is accelerating and we
are confident in our new stride. With strength built upon the
confidence we gained, the adaptability we demonstrated,
and the results we generated during the most challenging
economic period in our Company’s history, our credibility
is without question. We are poised to consistently deliver
on our commitment to our shareholders. We are the new
PolyOne and we have established a new way of creating
value and selling solutions. From our culture of customer
first, to our stronger balance sheet, to our operational
efficiency gains, to new business growth—PolyOne is
unmistakably leaner, stronger and poised for growth.
Leaner
We began 2009 with a global restructuring aimed at aligning
our organization with near-term demand, while concurrently
planning for future growth. Our restructuring efforts, which
are saving $60 million annually, were completed ahead of
schedule and below cost estimates, without compromising
the safety of our associates. In fact, our 2009 lost time
incidence rate was 0.8, placing PolyOne far ahead of our
industry average of 5.7 and firmly in the elite class of the
world’s safest companies.
Our efficiency improvements were not merely structural—
they were also operational. We realized significant efficiency
gains with the launch of our award-winning global Lean Six
Sigma (LSS) initiative. As evidenced by the size and scope
of the deployment, we are fully committed to optimizing
every aspect of our performance and the service we provide
customers. In fact, our global on-time delivery performance
demonstrated that our customer care remained exemplary.
Stronger
Our balance sheet is another measure of PolyOne’s strength.
Prioritizing and driving LSS projects focused on efficiency
improvements contributed to creating the strongest balance
sheet in the history of our Company—we increased cash
from $44 million at the end of 2008 to $223 million at the
end of 2009 and net debt declined $223 million.
Our resolve was further strengthened by delivering
estimate-beating year-end results. This achievement
This is our time. We have prepared for it. We are ready to grow.
We are the new PolyOne—a company with limitless potential.