Three Months Ended Nine Months Ended
September 30 September 30
2000 2001 2000 2001
Sales $284.9 $262.4 $891.0 $816.3
EBITDA $49.2 $44.2 $161.8 $130.7
Free Cash Flow(a) $36.1 $70.1 $114.0 $128.1
(a) EBITDA less capex plus/less changes in accounts receivable, inventory
and accounts payable
CLEVELAND, Nov. 14 /PRNewswire/ -- Noveon, Inc. today reported results for
the third quarter ended September 30, 2001. Noveon reported sales of
$262.4 million, earnings before interest, taxes, depreciation and amortization
(EBITDA) of $44.2 million and free cash flow of $70.1 million. For the third
quarter of 2000, BFGoodrich Performance Materials (Performance Materials), the
Predecessor Company, and a segment of The B.F.Goodrich Company, reported sales
of $284.9 million, EBITDA of $49.2 million and free cash flow of $36.1
million. Results of Performance Materials included certain businesses that
were not part of Noveon's acquisition of Performance Materials on February 28,
2001.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010523/CLW011LOGO-b )
Sales decreased 8% from a year ago reflecting volume declines related to
products sold to customers in the paper and packaging, textile and automotive
related industries, and unfavorable changes in foreign currency exchange
rates; partially offset by volume gains in Noveon's TempRite(R) and food and
beverage product lines. EBITDA declined by approximately 10% from the prior
year period primarily due to lower sales volume, the impact of reduced
production volume, higher raw material and utility costs, and the weaker Euro;
partially offset by lower manufacturing and selling, general and
administrative costs (SG&A). Free cash flow increased by $34.0 million from
$36.1 million to $70.1 million due to improved working capital management and
the impact of productivity improvements on capital spending levels.
Steve Demetriou, Noveon president and chief executive officer, said,
"Noveon's relentless focus on improved working capital management, cost
reductions and overall spending levels produced exceptional free cash flow
during the third quarter and an improvement in EBITDA from our second quarter.
However, Noveon's operating performance continued to be impacted by lower
demand due to the state of the economy. When the economy improves, Noveon
will be well positioned due to our cash focus and additional growth and
productivity initiatives. We continue to remain on track to deliver the
annualized cost savings of $12-15 million related to the restructuring
implemented earlier this year and are pursuing additional productivity related
opportunities."
Consumer Specialties Group
During the quarter, Noveon's Consumer Specialties Group reported a sales
increase of 1% from $72.1 million to $72.9 million compared with the prior
year third quarter due to higher volume in Noveon's food and beverage product
lines partially offset by the weaker Euro. EBITDA declined $2.8 million from
$17.6 million to $14.8 million, principally due to a weaker mix and new
product start-up costs within the pharmaceutical product lines, higher raw
material and utility costs and the impact of the weaker Euro.
Polymer Solutions Group
Noveon's Polymer Solutions Group sales declined 4% from $101.0 million to
$97.1 million compared to the prior year period. Lower results were primarily
due to volume reductions in products sold to automotive related industries by
Noveon's polymer additives and Estane(R) product lines and the impact of the
weaker Euro; partially offset by continued strength in sales volume within
Noveon's TempRite(R) product lines to the housing and fire sprinkler
industries. EBITDA decreased $1.4 million from $26.4 million to $25.0 million
due to lower sales volume, the impact of reduced production volume, and the
impact of the weaker Euro.
Performance Coatings Group
Performance Coatings Group sales decreased 17% from $111.8 million to
$92.4 million compared to the prior year period due to volume declines
resulting from lower demand from customers in the paper and packaging, and
textile industries. EBITDA decreased $4.2 million from $20.2 million to
$16.0 million due to sales volume declines, reduced production volume, and
higher raw material and utility costs; partially offset by lower manufacturing
and SG&A costs.
Corporate
Corporate overhead excluding depreciation and management fees decreased
$3.4 million from $15.0 to $11.6 million. The decrease is primarily the
result of the Company's restructuring, spending control efforts and a
reduction in postretirement benefit costs; partially offset by the incremental
administrative costs of a stand-alone entity.
Noveon will be hosting a conference call to discuss third quarter results
on Thursday, November 15 at 10:00 AM 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 third quarter earnings call (confirmation
code 5034379). A replay of the call will be available through Wednesday,
November 21 by calling (domestic) 1 (888) 843-8996 (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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AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 212-782-2840
CONTACT:
Media, Rob Jewell, or +1-216-447-5255, or
Investors, Sean Stack, +1-216-447-6494, both of Noveon
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