CLEVELAND, April 22 /PRNewswire/ -- Noveon, Inc. today reports selected
financial results for the first quarter of 2002.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010523/CLW011LOGO-b )
Three Months Ended
March 31
2001 2002
($ millions) unaudited
Sales $282.8 $259.4
Gross Profit $77.5 $82.4
Operating Income $19.9 $29.4
Net Income $5.0 $8.5
EBITDA (a) $44.1 $51.4
Free Cash Flow (b) $21.5 $29.2
Cash Balance $19.3 $110.7
(a) EBITDA (unaudited) is not a measure of operating income, net income,
operating performance or liquidity under GAAP
(b) Free cash flow (unaudited) is EBITDA less capex plus/less changes in
accounts receivable, inventory and accounts payable
In the quarter, Noveon reports sales of $259.4 million, and earnings
before interest, taxes, depreciation and amortization (EBITDA) of
$51.4 million. For the first quarter of 2001, Noveon reported sales of
$282.8 million, and EBITDA of $44.1 million. First quarter 2001 results
include two months as BFGoodrich Performance Materials ("Performance
Materials"), a segment of The B.F.Goodrich Company and one month as Noveon.
Results of Performance Materials included certain businesses that were not
part of Noveon's acquisition of Performance Materials on February 28, 2001.
Sales decreased 8% from the prior year first quarter reflecting lower
volumes in products sold to the textile, industrial and automotive related
industries, lower European demand, competitive pricing pressure, and the
weaker Euro; partially offset by volume gains in Noveon's Personal Care
product lines. EBITDA increased 17% from the prior year quarter primarily due
to lower raw material, manufacturing and selling, general and administrative
costs due to productivity initiatives, which more than offset lower sales
volume. Free cash flow improved by 36% from $21.5 million to $29.2 million
due to higher EBITDA and lower capital expenditures.
Steve Demetriou, Noveon president and chief executive officer, said, "As
expected, benefits from productivity initiatives and lower raw material costs
drove our improved bottom line results in the first quarter versus the prior
year and versus the fourth quarter of 2001. While we are pleased with the
volume improvements in the first quarter over the fourth quarter, we continue
to expect that any meaningful economic recovery would not occur until the
second half of 2002. At this time, we reiterate our expectations for 2002 of
sequential and year over year improvements in the second quarter and, if
improved industrial economic conditions materialize in the second half, we
would expect to generate double-digit EBITDA growth for the full year."
Consumer Specialties Segment
Noveon's Consumer Specialties Segment reported a sales decrease of 5% from
$70.3 million to $66.9 million compared with the prior year first quarter due
to the impact of lower phenol prices within the food and beverage product
lines, discontinued product lines at our Cincinnati location and lower
pharmaceutical volumes; partially offset by higher volumes in our personal
care product lines. EBITDA increased 21% or $2.8 million from $13.1 million
to $15.9 million, principally due to favorable raw material and natural gas
costs, higher personal care volumes and productivity benefits.
Polymer Solutions Segment
Sales declined 11% from $110.0 million to $98.1 million compared to the
first quarter of the prior year in Noveon's Polymer Solutions Segment. Lower
sales were primarily due to reduced volumes in products used in industrial and
automotive related applications within Noveon's polymer additives, Estane(R)
and Temprite(R) product lines, lower European demand, competitive pricing
pressure and the weaker Euro; partially offset by higher plumbing and fire
sprinkler related sales within the Temprite(R) product lines. EBITDA
decreased 8% or $2.7 million from $32.3 million to $29.6 million due to lower
sales volume; partially offset by lower raw material, utility and
manufacturing costs.
Performance Coatings Segment
Performance Coatings Segment sales decreased 8% from $102.5 million to
$94.4 million compared to the first quarter of the prior year due to volume
declines resulting from lower demand from customers in the textile and graphic
arts related industries, slower European demand and the disposition of the
textile dyes business; partially offset by higher volumes in industrial
coatings applications. EBITDA increased by 46% from $13.8 million to $20.1
million as lower raw material costs and improved productivity more than offset
the impact of lower volume.
Corporate
In the first quarter, corporate overhead expenses excluding depreciation
and management fees decreased $0.9 million from $15.1 million to $14.2
million. The improvement is primarily the result of the Company's
restructuring and spending control efforts as well as reduced postretirement
benefits costs; partially offset by the incremental administrative costs of a
stand-alone entity.
Noveon will be hosting a conference call to discuss first quarter results
today, at 1:00 PM EDT. Domestic callers should dial 1 (800) 446-1671 and
international callers should dial 1 (847) 413-3362 and ask to be connected to
the Noveon first quarter earnings call (confirmation code 5632903). A replay
of the call will be available through Friday, April 26, by calling (domestic)
1 (888) 843-8996 or (international) 1 (630) 652-3044 with the above
confirmation code.
Noveon is a leading global producer and marketer of technologically
advanced specialty chemicals for a broad range of consumer and industrial
applications. The Company was formed as an independent entity on February 28,
2001 when an investor group comprised of AEA Investors Inc., and affiliates of
DLJ Merchant Banking Partners and DB Capital Partners, Inc., acquired the
Performance Materials business from The B.F.Goodrich Company. Noveon is
headquartered in Cleveland, Ohio, with regional centers in Brussels, Belgium,
and Hong Kong.
This release contains forward-looking statements that relate to future
events or performance. These statements reflect the Company's current
expectations, and the Company does not undertake to update or revise these
forward-looking statements, even if experience or future changes make it clear
that any projected results express or implied in this or other Company
statements will not be realized. Furthermore, investors are cautioned that
these statements involve risks and uncertainties, many of which are beyond the
Company's control, which could cause actual results to differ materially from
the forward-looking statements. Further information about these risks can be
found in the Company's filings with the Securities and Exchange Commission.
Investors are cautioned not to place undue reliance on any forward-looking
statements contained herein, which speak only as of the date hereof. The
Company undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
SOURCE Noveon, Inc.
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Related links:
http://www.noveoninc.com
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CONTACT:
Media, Rob Jewell, +1-216-447-5255, or
Investor Relations, Sean Stack, +1-216-447-6494, both of Noveon,
Inc.
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