PolyOne Updates First-quarter 2008 Outlook

CLEVELAND, March 21  /PRNewswire-FirstCall/ -- PolyOne Corporation (NYSE: POL) today updated its outlook for the first quarter ending March 31, 2008.

The Company expects first quarter consolidated sales to increase 9% to 11% compared with the first quarter of 2007.  Demand is expected to weaken in the later portion of the quarter as the North American economic downturn is impacting other industrial end markets beyond automotive and building and residential construction, such as wire and cable.

Aggregate sales for PolyOne's Specialty businesses, including sales from the recently acquired GLS Corporation, are projected to grow nearly 25% in the quarter compared with the first quarter of 2007.  GLS was acquired in January 2008 and represents approximately 14% of the Specialty growth.  PolyOne's Specialty businesses consist of: International Color and Engineered Materials, Specialty Engineered Materials (which includes the results of GLS), North American Color and Additives, and Specialty Inks and Polymer Systems. Operating income in the aggregate for these businesses is projected to grow significantly from the same period a year ago, reflecting stronger profit margins across this increased sales base.  The Company anticipates that International segment sales and operating income in the first quarter would continue to demonstrate double-digit growth compared to a year ago.  This anticipated solid performance by the Specialty businesses underpins PolyOne's strategic portfolio transformation.

For PolyOne Distribution, the Company anticipates meaningful increases in both sales and operating income during the first quarter of 2008 compared with the first quarter of 2007.

First-quarter sales for the Company's Vinyl Business segment are expected to decline 2% to 4% compared with the first quarter of 2007.  Vinyl Business segment earnings are anticipated to be substantially below first quarter of 2007 levels, due to a combination of lower demand and margin pressure caused by higher raw material and energy costs not fully offset by increased pricing.

Resin and Intermediates segment earnings are projected to increase slightly compared with a year ago.  Chlor-alkali margins have remained strong, although weak vinyl industry demand is adversely affecting sales volumes.  In the first-quarter of 2007, the OxyVinyls joint venture reported a $1.3 million loss.  PolyOne sold its interest in this joint venture on July 6, 2007.

  Additional considerations:

  -- The Company expects first quarter Corporate and eliminations to be
     between $12 million and $14 million, including a $1.6 million one-time
     purchase accounting charge related to the GLS acquisition.

  -- The Company anticipates net financing expenses to be approximately
     $9.2 million in the first quarter of 2008, down $5.5 million from the
     $14.7 million recorded in the first quarter of 2007.  The lower expense
     is due to the redemption of $241.4 million of the 2010 notes, partially
     offset by debt incurred in connection with the acquisition of GLS.


  First quarter 2008 Earnings Release and Conference Call


PolyOne intends to release its first-quarter earnings on Tuesday, May 6, 2008, and host a conference call at 9:00 a.m. Eastern time on Wednesday, May 7, 2008.  The conference dial-in number is 866-543-6403 (domestic) or 617-213- 8896 (international), passcode 77320730, conference topic: First quarter 2008 PolyOne Earnings Conference Call.  The replay number is 888-286-8010 (domestic) or 617-801-6888 (international).  The passcode for the replay is 99544252.  The call will be broadcast live and then be available via replay until Wednesday, May 14, 2008, on the Company's Web site at http://www.polyone.com/.

About PolyOne

PolyOne Corporation, with annual revenues of more than $2.7 billion, is a leading global provider of specialized polymer materials, services and solutions.  Headquartered outside of Cleveland, Ohio USA, PolyOne has operations around the world.  For additional information on PolyOne, visit our new website at http://www.polyone.com/.

Forward-looking Statements

In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historic or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance and/or sales. In particular, these include statements relating to future actions; prospective changes in raw material costs, product pricing or product demand; future performance; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of contingencies such as legal proceedings; and financial results, including those of GLS. Factors that could cause actual results to differ materially include, but are not limited to:

  -- the effect on foreign operations of currency fluctuations, tariffs,
     nationalization, exchange controls, limitations on foreign investment
     in local businesses and other political, economic and regulatory risks;
  -- changes in polymer consumption growth rates within the U.S., Europe or
     Asia or other countries where PolyOne conducts business;
  -- changes in global industry capacity or in the rate at which anticipated
     changes in industry capacity come online in the polyvinyl chloride
     (PVC), chlor-alkali, vinyl chloride monomer (VCM) or other industries
     in which PolyOne participates;
  -- fluctuations in raw material prices, quality and supply and in energy
     prices and supply, in particular fluctuations outside the normal range
     of industry cycles;
  -- production outages or material costs associated with scheduled or
     unscheduled maintenance programs;
  -- the cost of compliance with environmental laws and regulations,
     including any increased cost of complying with new or revised laws and
     regulations;
  -- unanticipated developments that could occur with respect to
     contingencies such as litigation and environmental matters, including
     any developments that would require any increase in our costs and/or
     reserves for such contingencies;
  -- an inability to achieve or delays in achieving or achievement of less
     than the anticipated financial benefit from initiatives related to cost
     reductions and employee productivity goals;
  -- an inability to raise or sustain prices for products or services;
  -- an inability to maintain appropriate relations with unions and
     employees in certain locations in order to avoid business disruptions;
  -- any change in any agreements with product suppliers to PolyOne
     Distribution that prohibits PolyOne from continuing to distribute a
     supplier's products to customers;
  -- the ability to successfully integrate GLS;
  -- the ability to successfully integrate Ngai Hing PlastChem, and
  -- other factors affecting our business beyond our control, including,
     without limitation, changes in the general economy, changes in interest
     rates and changes in the rate of inflation.




We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Investors should bear this in mind as they consider forward-looking statements.

We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission. You should understand that it is not possible to predict or identify all risk factors. Consequently, you should not consider any list to be a complete set of all potential risks or uncertainties. (Ref. #32108) 

DATASOURCE: PolyOne Corporation



CONTACT:   Investors, W. David Wilson, Senior Vice President & Chief

Financial Officer, [phone], or Media, John Daggett, Director of

Corporate Communications, [phone]



Web site:  http://www.polyone.com/

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