Page 45 - Plastics News February 2021

Business news

Avient (Polyone) results exceed Amcor registers net income of

projections $417 million

ourth quarter 2020 GAAP EPS ackaging converter Amcor
Ffrom continuing operations Phas delivered strong
was $0.81 and compared to financial results for the first
$0.08 in the prior year fourth half and raised its outlook for
quarter. The company noted the full year. The company
that GAAP EPS includes special posted net income of $417
items of $0.29 (Attachment million for the six months
3) primarily associated with ended December 31, 2020, up
one-time tax benefits of $0.35, 65 per cent, while adjusted
which was partially offset EBIT of $743m was up 8 per
by acquisition-related and cent in constant currency
restructuring costs. Adjusted terms.Amcor’s CEO Ron Delia
EPS of $0.52 exceeded the $0.48 projection included in said: “Amcor delivered strong financial results ahead
the Company's performance update provided in December of our expectations for the first half and we have
and was driven by better-than-expected sales in the Color, raised the outlook for the full year as our teams
Additives and Inks segment."I am extremely pleased with continue to demonstrate resilience and outstanding
our record fourth quarter results, as every segment and execution." "Sales growth of 3% was balanced across
end market grew over the prior year fourth quarter. SEM our businesses and regions, cost performance has been
generated its highest-ever quarterly operating income at strong and synergies from the Bemis acquisition are
$30 million, a 58% increase over prior year fourth quarter. running ahead of schedule. We have built momentum
For the year, SEM grew operating income 13%, as demand in both operating segments resulting in Adjusted EBIT
growth of 9% in Flexibles and 10% in Rigid Packaging in
for our composites technologies continues to strengthen," constant currency terms. That momentum translates
said Robert M. Patterson, Chairman, President and Chief into higher expectations for the full year with Adjusted
Executive Officer, Avient Corporation. Mr. Patterson added, EPS growth now forecast at 10-14% in constant currency
"Our Color, Additives and Inks segment also delivered terms as well as an increased dividend and additional
record operating income of $58 million during the fourth share repurchases.” “Amcor’s investment case remains
quarter. This represents a 45% increase over the prior as strong as ever. We are well positioned to continue
year quarter, pro forma for the Clariant Masterbatch generating growth from attractive consumer and
business."The Company highlighted that integration of healthcare end markets, our leadership and scale
the Clariant Masterbatch business is continuing to exceed in emerging markets and our extensive innovation
expectations. Total expected cost synergy estimates capabilities. With annual free cash flow of more than
increased from $60 million to $75 million, and the rate $1 billion, we have substantial capacity to create value
of capture has also accelerated. Customer collaboration for shareholders by reinvesting in the business, pursuing
and feedback has been extremely positive, and cultural acquisitions, and returning capital through a compelling
integration has been excellent, as evidenced by the and growing dividend and share repurchases.” . For the
employee engagement scores that clearly reflect Avient twelve month period ending 30 June 2021, the Company
is a great place to work. Mr. Patterson reflected on 2020 expects: Adjusted constant currency EPS growth of
saying, "It was a historic year where we brought two global approximately 10 to 14% (previously 7 to 12%), compared
leaders together to create an even stronger company – now with adjusted EPS of 64.2 US cents per share in fiscal
known as Avient. Thanks to our talented associates and 2020. ‘ Overall first half segment volumes were 2% higher
strategic portfolio investments, we have navigated the than the same period last year. All geographic regions
unprecedented challenges of the pandemic. We held our delivered.volume growth and by end market, growth in
priorities firm by keeping health and safety first, providing food, pet food and beverage was partially offset by lower
world-class service to our customers." volumes incertain healthcare end markets.

45 Februar y 2021 Plastics News