Thomas A. Waltermire Steps Down as PolyOne's President and Chief Executive Officer
October 7, 2005
Chairman William F. Patient to serve as interim CEO until successor is named
CLEVELAND, Oct. 7 /PRNewswire-FirstCall/ -- PolyOne Corporation
(NYSE: POL), a leading global polymer compounding and North American
distribution company, today announced that Thomas A. Waltermire has stepped
down as the company's president, chief executive officer and director,
The board has asked William F. Patient, non-executive chairman of the
board, to serve as interim chief executive officer until a permanent successor
Waltermire stated, "As the company enters the next phase of its strategic
evolution, the Board and I agree that the time is right for new leadership. I
take pride in our many accomplishments, starting with the creation of PolyOne,
and I wish my colleagues the best of luck in the future."
Patient added, "The board understands Tom's difficult but reasoned
decision that now is an appropriate time for a change in leadership. During
his tenure, we have made significant progress on many fronts, including
improvement of our core businesses, divestiture of our non-core assets,
achievement of our targeted cost structure and investment in our people. We
believe that PolyOne is positioned for future growth and profitability.
"As PolyOne's leader since its formation five years ago, Tom has played a
vital role in the Company's transformation. On behalf of the entire board, I
would like to thank him for his many years of dedicated service," Patient
PolyOne will begin its search for a permanent chairman and chief executive
immediately. The board has retained the global executive search firm, Russell
Reynolds Associates, to conduct the search. The Company anticipates
completing the process by early 2006.
During the decade of the 1990s, Patient helped to transform The Geon
Company, one of PolyOne's predecessor companies, into an industry leader in
polymers. He retired in 1999 as chairman and chief executive officer. He
joined PolyOne's Board of Directors as non-executive chairman in November
Waltermire became chairman and chief executive officer of PolyOne in
September 2000, with the consolidation of The Geon Company and M.A. Hanna
Corporation. His title became president and CEO in November 2003, when
Patient joined PolyOne's board as non-executive chairman. Prior to PolyOne,
Waltermire served in a variety of positions with The Geon Company, beginning
in 1993 and culminating in his being named chairman and CEO in May 1999. He
began his career with The BF Goodrich Company.
PolyOne Corporation, with 2004 annual revenues of approximately $2.2
billion, is a leading global compounding and North American distribution
company with continuing operations in thermoplastic compounds, specialty
polymer formulations, color and additive systems, and thermoplastic resin
distribution. Headquartered in northeast Ohio, PolyOne has employees at
manufacturing sites in North America, Europe, Asia and Australia, and joint
ventures in North America and South America. Information on PolyOne's
products and services can be found at http://www.polyone.com.
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; and 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, including those related to the effects of Hurricane Katrina; - 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 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; - 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 Colors and Additives Masterbatch and the Engineered Materials product platforms to profitability; - an inability to raise prices or sustain price increases for products; - an inability or delay beyond December 31, 2005 in finding buyers of discontinued operations or other non-core assets for reasonable and acceptable terms; - an inability to achieve anticipated earnings performance due to the divestment of a non-core business; - an inability to complete the sale of discontinued businesses due to problems or delays associated with legal proceedings, regulatory approvals and/or buyers receiving financing for the transaction or any other reasons; 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.
SOURCE PolyOne Corporation
CONTACT: Investors & Media, Dennis Cocco, Vice President, Investor
Relations & Communications of PolyOne Corporation, +1-440-930-1538
Web site: http://www.polyone.com