PolyOne Updates 2006 First-Quarter Outlook

March 23, 2006

CLEVELAND, March 23 /PRNewswire-FirstCall/ -- PolyOne Corporation
(NYSE: POL) today updated its outlook for the fourth quarter ending March 31,
2006. This action is part of PolyOne's continuing effort to keep investors
informed of current business conditions.

    Following is a summary of conditions within the business segments:

     - Performance Plastics - PolyOne anticipates that first-quarter sales
       will increase 4 percent to 7 percent compared with the first quarter of
       2005.  Demand has increased seasonally over the fourth quarter of 2005.
       PolyOne projects that shipments will be 3 percent to 6 percent higher
       than in the fourth quarter, and will approximate first-quarter 2005
       levels.  International shipments (Europe and Asia) appear particularly
       strong compared with first-quarter 2005 levels.

       Reaffirming its earlier projection, PolyOne anticipates that product
       spreads (selling price less raw material costs) will improve compared
       with the first quarter of 2005.  The Company expects that, in
       combination, the above factors should result in stronger segment
       operating income compared with the first quarter of 2005 and
       substantially higher earnings compared with the fourth quarter of 2005.

     - Distribution - Shipment volume is developing as anticipated and should
       be 3 percent to 6 percent higher than in the first quarter of 2005.
       Year over year, sales should increase more than 10 percent despite
       lower selling prices for commodity and some engineering-grade resins,
       reflective of a current softening of broad market pricing.  PolyOne
       expects that segment operating income, paced by the higher shipments,
       will be in line with both the first and fourth quarters of 2005.

     - Resin and Intermediates - Industry spreads for polyvinyl chloride
       (PVC) resins in the first quarter should hold or improve moderately
       compared with year-end 2005 levels, due primarily to lower ethylene
       costs.  In addition, PolyOne's equity joint ventures, SunBelt Chlor-
       Alkali and Oxy Vinyls, LP, should benefit in the first quarter from
       sustained strength in caustic soda and chlorine spreads.  PolyOne
       anticipates that strong chlor-alkali earnings will approximate fourth-
       quarter 2005 levels.

       The combination of these factors should result in higher Resin and
       Intermediates earnings than anticipated in PolyOne's February 7, 2006,
       earnings release.  Further, the Company projects that the segment's
       first-quarter 2006 operating income should improve compared with the
       first and fourth quarters of 2005.

As a result of these business segment conditions, PolyOne now expects
first-quarter 2006 financial results to be better than anticipated at the end
of 2005, exceeding first-quarter 2005 results.

PolyOne continues to project full-year 2006 cash generation well above the
2005 level, even though the Company expects negative operating cash flow
generation in the first quarter. PolyOne anticipates, however, that the
negative first-quarter level will be less than both its earlier projection and
the first-quarter 2005 level.

About PolyOne

PolyOne Corporation, with 2005 annual revenues of approximately $2.5
billion, is a leading global polymer compounding and services company and a
North American distributor of thermoplastic resins. Product offerings include
vinyl and other thermoplastic compounds, polymer coating systems, color and
additive masterbatches, and specialty vinyl resins. Headquartered in
northeast Ohio, PolyOne has joint ventures in North America and South America
and manufacturing facilities in North America, Europe, Asia and Australia.
Information on PolyOne's products and services can be found at

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.
In particular, these include statements relating to future actions;
prospective changes in raw material costs, product pricing or product demand;
future performance, including, without limitation, meeting cash flow goals,
receiving cash distributions from equity affiliates and achieving working
capital targets; results of current and anticipated market conditions and
market strategies; sales efforts; expenses; the outcome of contingencies such
as legal proceedings; financial results. 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 U.S., regional or world polymer consumption growth rates
       affecting PolyOne's markets;
     - 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;
     - costs or difficulties and delays related to the operation of joint
       venture entities;
     - lack of day-to-day operating control, including procurement of raw
       materials, of equity or joint venture affiliates;
     - partial control over investment decisions and dividend distribution
       policy of the OxyVinyls partnership and other minority equity holdings
       of PolyOne;
     - an inability to launch new products and/or services within PolyOne's
       various businesses;
     - the possibility of further goodwill impairment;
     - an inability to maintain any required licenses or permits;
     - an inability to comply with any environmental laws and regulations;
     - the cost of compliance with environmental laws and regulations,
       including any increased cost of complying with new or revised laws and
     - 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;
     - a delay or inability to achieve targeted debt level reductions through
       divestitures and/or other means;
     - an inability to access the revolving credit facility and/or the
       receivables sale facility as a result of breaching covenants due to not
       achieving anticipated earnings performance or for any other reason;
     - any poor performance of our pension plan assets and any obligation on
       our part to fund PolyOne's pension plan;
     - any delay and/or inability to bring the North American Color and
       Additives Masterbatch and the Engineered Materials product platforms to
     - an inability to raise prices or sustain price increases for products;
     - an inability to achieve anticipated earnings performance due to the
       divestment of a non-core business;
     - an inability to maintain appropriate relations with unions and
       employees in certain locations in order to avoid disruptions of
       business; 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

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 provided 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. #32306)

SOURCE  PolyOne Corporation
    -0-                             03/23/2006
    /CONTACT:  Dennis Cocco, Vice President, Investor Relations &
Communications of PolyOne Corporation, +1-440-930-1538/
    /Web site:  http://www.polyone.com/

CO:  PolyOne Corporation
ST:  Ohio

-- CLTH007 --
7552 03/23/2006 08:00 EST http://www.prnewswire.com
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