https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Press Release_0.pdf
This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, environmental remediation costs, mark-to-market adjustments associated with benefit plans, acquisition related costs, and other non-routine costs.
Three Months Ended March 31, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 49.4 $ 0.54 $ 20.8 $ 0.23 Special items, after-tax (Attachment 3) 5.5 0.06 22.3 0.24 Amortization expense, after-tax 14.9 0.16 15.1 0.16 Adjusted net income / EPS $ 69.8 $ 0.76 $ 58.2 $ 0.63 7 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended March 31, 2024 2023 Sales $ 829.0 $ 845.7 Cost of sales 550.8 598.1 Gross margin 278.2 247.6 Selling and administrative expense 184.2 190.5 Operating income 94.0 57.1 Interest expense, net (26.6) (28.8) Other (expense) income, net (0.9) 0.7 Income from continuing operations before income taxes 66.5 29.0 Income tax expense (16.8) (7.7) Net income from continuing operations 49.7 21.3 Loss from discontinued operations, net of income taxes — (0.9) Net income 49.7 20.4 Net income attributable to noncontrolling interests (0.3) (0.5) Net income attributable to Avient common shareholders $ 49.4 $ 19.9 Earnings (loss) per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.54 $ 0.23 Discontinued operations — (0.01) Total $ 0.54 $ 0.22 Earnings (loss) per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.54 $ 0.23 Discontinued operations — (0.01) Total $ 0.54 $ 0.22 Cash dividends declared per share of common stock $ 0.2575 $ 0.2475 Weighted-average shares used to compute earnings per common share: Basic 91.2 91.0 Diluted 92.0 91.8 8 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended March 31, 2024 2023 Cost of sales: Restructuring costs, including accelerated depreciation $ 3.6 $ (6.6) Environmental remediation costs (4.0) (1.4) Impact on cost of sales (0.4) (8.0) Selling and administrative expense: Restructuring and employee separation costs (0.7) (11.3) Legal and other (3.5) (4.4) Acquisition related costs (1.6) (3.4) Impact on selling and administrative expense (5.8) (19.1) Impact on operating income (6.2) (27.1) Other income (loss), net — (0.2) Impact on income from continuing operations before income taxes (6.2) (27.3) Income tax benefit on above special items 1.4 6.9 Tax adjustments(2) (0.7) (1.9) Impact of special items on net income from continuing operations $ (5.5) $ (22.3) Diluted earnings per common share impact $ (0.06) $ (0.24) Weighted average shares used to compute adjusted earnings per share: Diluted 92.0 91.8 (1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to- market adjustments associated with gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non- recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax impact from non-recurring income tax items, adjustments to uncertain tax position reserves and the establishment, reversal or changes to valuation allowances. 9 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (In millions) (Unaudited) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 444.3 $ 545.8 Accounts receivable, net 475.3 399.9 Inventories, net 354.0 347.0 Other current assets 117.1 114.9 Total current assets 1,390.7 1,407.6 Property, net 1,021.7 1,028.9 Goodwill 1,700.1 1,719.3 Intangible assets, net 1,546.5 1,590.8 Other non-current assets 217.1 221.9 Total assets $ 5,876.1 $ 5,968.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 9.6 $ 9.5 Accounts payable 428.3 432.3 Accrued expenses and other current liabilities 294.2 331.8 Total current liabilities 732.1 773.6 Non-current liabilities: Long-term debt 2,069.4 2,070.5 Pension and other post-retirement benefits 66.3 67.2 Deferred income taxes 280.0 281.6 Other non-current liabilities 390.5 437.6 Total non-current liabilities 2,806.2 2,856.9 SHAREHOLDERS' EQUITY Avient shareholders’ equity 2,321.3 2,319.2 Noncontrolling interest 16.5 18.8 Total equity 2,337.8 2,338.0 Total liabilities and equity $ 5,876.1 $ 5,968.5 10 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Three Months Ended March 31, 2024 2023 Operating activities Net income $ 49.7 $ 20.4 Adjustments to reconcile net income to net cash used by operating activities: Depreciation and amortization 43.8 48.7 Accelerated depreciation 0.5 1.8 Share-based compensation expense 3.3 3.2 Changes in assets and liabilities: Increase in accounts receivable (81.9) (40.2) (Increase) decrease in inventories (12.3) 3.8 Increase (decrease) in accounts payable 1.7 (9.9) Accrued expenses and other assets and liabilities, net (47.6) (50.0) Net cash used by operating activities (42.8) (22.2) Investing activities Capital expenditures (24.4) (20.3) Net proceeds from divestiture — 7.3 Proceeds from plant closures 2.0 — Other investing activities (2.1) — Net cash used by investing activities (24.5) (13.0) Financing activities Cash dividends paid (23.5) (22.5) Repayment of long-term debt (2.7) (0.8) Other financing activities (1.9) (2.3) Net cash used by financing activities (28.1) (25.6) Effect of exchange rate changes on cash (6.1) 2.4 Decrease in cash and cash equivalents (101.5) (58.4) Cash and cash equivalents at beginning of year 545.8 641.1 Cash and cash equivalents at end of period $ 444.3 $ 582.7 11 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/2024-08/AVNT Second Quarter Earnings Press Release.pdf
This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, environmental remediation costs, mark-to-market adjustments associated with benefit plans, acquisition related costs, and other non-routine costs.
Three Months Ended June 30, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 33.6 $ 0.36 $ 22.1 $ 0.24 Special items, after-tax (Attachment 3) 21.8 0.24 19.6 0.21 Amortization expense, after-tax 14.8 0.16 16.2 0.18 Adjusted net income / EPS $ 70.2 $ 0.76 $ 57.9 $ 0.63 Six Months Ended June 30, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 83.0 $ 0.90 $ 42.9 $ 0.47 Special items, after-tax (Attachment 3) 27.3 0.30 41.9 0.46 Amortization expense, after-tax 29.7 0.32 31.3 0.34 Adjusted net income / EPS $ 140.0 $ 1.52 $ 116.1 $ 1.27 8 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Sales $ 849.7 $ 824.4 $ 1,678.7 $ 1,670.1 Cost of sales 592.1 583.7 1,142.9 1,181.8 Gross margin 257.6 240.7 535.8 488.3 Selling and administrative expense 185.1 178.4 369.3 368.9 Operating income 72.5 62.3 166.5 119.4 Interest expense, net (26.6) (29.4) (53.2) (58.2) Other (expense) income, net (0.9) (0.2) (1.8) 0.5 Income from continuing operations before income taxes 45.0 32.7 111.5 61.7 Income tax expense (11.2) (10.4) (28.0) (18.1) Net income from continuing operations 33.8 22.3 83.5 43.6 Loss from discontinued operations, net of income taxes — — — (0.9) Net income $ 33.8 $ 22.3 $ 83.5 $ 42.7 Net income attributable to noncontrolling interests (0.2) (0.2) (0.5) (0.7) Net income attributable to Avient common shareholders $ 33.6 $ 22.1 $ 83.0 $ 42.0 Earnings (loss) per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.37 $ 0.24 $ 0.91 $ 0.47 Discontinued operations — — — (0.01) Total $ 0.37 $ 0.24 $ 0.91 $ 0.46 Earnings (loss) per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.36 $ 0.24 $ 0.90 $ 0.47 Discontinued operations — — — (0.01) Total $ 0.36 $ 0.24 $ 0.90 $ 0.46 Cash dividends declared per share of common stock $ 0.2575 $ 0.2475 $ 0.5150 $ 0.4950 Weighted-average shares used to compute earnings per common share: Basic 91.3 91.1 91.3 91.1 Diluted 92.2 91.9 92.0 91.9 9 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cost of sales: Restructuring costs, including accelerated depreciation $ 0.2 $ (1.2) $ 3.8 $ (7.8) Environmental remediation costs (21.8) (13.0) (25.8) (14.4) Impact on cost of sales (21.6) (14.2) (22.0) (22.2) Selling and administrative expense: Restructuring and employee separation costs (2.8) (0.5) (3.5) (11.9) Legal and other (2.3) (6.4) (5.8) (10.6) Acquisition related costs (0.5) (0.7) (2.1) (4.2) Impact on selling and administrative expense (5.6) (7.6) (11.4) (26.7) Impact on operating income (27.2) (21.8) (33.4) (48.9) Interest expense, net - financing costs (1.0) — (1.0) — Other income (loss) 0.1 0.1 0.1 (0.1) Impact on income from continuing operations before income taxes (28.1) (21.7) (34.3) (49.0) Income tax benefit on above special items 7.0 5.5 8.4 12.4 Tax adjustments(2) (0.7) (3.4) (1.4) (5.3) Impact of special items on net income from continuing operations $ (21.8) $ (19.6) $ (27.3) $ (41.9) Diluted earnings per common share impact $ (0.24) $ (0.21) $ (0.30) $ (0.46) Weighted average shares used to compute adjusted earnings per share: Diluted 92.2 91.9 92.0 91.9 (1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to- market adjustments associated with gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non- recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax impact from non-recurring income tax items, adjustments to uncertain tax position reserves and the establishment, reversal or changes to valuation allowances. 10 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (In millions) (Unaudited) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 489.4 $ 545.8 Accounts receivable, net 486.6 399.9 Inventories, net 365.9 347.0 Other current assets 117.2 114.9 Total current assets 1,459.1 1,407.6 Property, net 1,019.9 1,028.9 Goodwill 1,685.1 1,719.3 Intangible assets, net 1,515.7 1,590.8 Other non-current assets 228.0 221.9 Total assets $ 5,907.8 $ 5,968.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 657.7 $ 9.5 Accounts payable 435.2 432.3 Accrued expenses and other current liabilities 405.3 331.8 Total current liabilities 1,498.2 773.6 Non-current liabilities: Long-term debt 1,420.8 2,070.5 Pension and other post-retirement benefits 63.3 67.2 Deferred income taxes 276.3 281.6 Other non-current liabilities 315.0 437.6 Total non-current liabilities 2,075.4 2,856.9 SHAREHOLDERS' EQUITY Avient shareholders’ equity 2,317.5 2,319.2 Noncontrolling interest 16.7 18.8 Total equity 2,334.2 2,338.0 Total liabilities and equity $ 5,907.8 $ 5,968.5 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Six Months Ended June 30, 2024 2023 Operating Activities Net income $ 83.5 $ 42.7 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 88.4 96.2 Accelerated depreciation 0.8 1.9 Share-based compensation expense 9.0 6.5 Changes in assets and liabilities: Increase in accounts receivable (97.0) (66.6) (Increase) decrease in inventories (27.3) 14.0 Increase (decrease) in accounts payable 11.9 (26.2) Taxes paid on gain on sale of business — (103.0) Accrued expenses and other assets and liabilities, net (6.2) 9.8 Net cash provided (used) by operating activities 63.1 (24.7) Investing activities Capital expenditures (55.8) (45.9) Net proceeds from divestiture — 7.3 Proceeds from plant closures 3.4 — Other investing activities (2.1) — Net cash used by investing activities (54.5) (38.6) Financing activities Cash dividends paid (47.0) (45.0) Repayment of long-term debt (4.5) (1.0) Other financing activities (3.3) (2.3) Net cash used by financing activities (54.8) (48.3) Effect of exchange rate changes on cash (10.2) (0.8) Decrease in cash and cash equivalents (56.4) (112.4) Cash and cash equivalents at beginning of year 545.8 641.1 Cash and cash equivalents at end of period $ 489.4 $ 528.7 12 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/2020-09/edgetek-processing-guide.pdf
PROBLEM CAUSE SOLUTION Excessive Shrink Too much orientation • Increase packing time and pressure • Increase hold pressure • Decrease melt temperature • Decrease mold temperature • Decrease injection speed • Decrease screw rpm • Increase venting • Increase cooling time Not Enough Shrink Too little orientation • Decrease packing pressure and time • Decrease hold pressure • Increase melt temperature • Increase mold temperature • Increase injection speed • Increase screw rpm • Decrease cooling time Burning Melt and/or mold temperature too hot Mold design Moisture • Decrease nozzle and barrel temperatures • Decrease mold temperature • Decrease injection speed • Clean, widen and increase number of vents • Increase gate size or number of gates • Verify material is dried at proper conditions Nozzle Drool Nozzle temperature too hot • Decrease nozzle temperature • Decrease back pressure • Increase screw decompression • Verify material has been dried at proper conditions Weld Lines Melt front temperatures too low Mold design • Increase pack and hold pressure • Increase melt temperature • Increase vent width and locations • Increase injection speed • Increase mold temperature • Decrease injection speed • Increase gate size • Perform short shots to determine fill pattern and verify proper vent location • Add vents and/or false ejector pin • Move gate location Warp Excessive orientation Mold design • Increase cooling time • Increase melt temperature • Decrease injection pressure and injection speed • Increase number of gates Sticking in Mold Cavities are overpacked Mold design Part is too hot • Decrease injection speed and pressure • Decrease pack and hold pressure • Decrease nozzle and barrel temperatures • Decrease mold temperature • Increase cooling time • Increase draft angle • Decrease nozzle and barrel temperatures • Decrease mold temperature • Increase cooling time TROUBLESHOOTING RECOMMENDATIONS PROBLEM CAUSE SOLUTION Incomplete Fill Melt and/or mold temperature too cold Mold design Shot Size • Increase nozzle and barrel temperatures • Increase mold temperature • Increase injection speed • Increase pack and hold pressure • Increase nozzle tip diameter • Check thermocouples and heater bands • Enlarge or widen vents and increase number of vents • Check that vents are unplugged • Check that gates are unplugged • Enlarge gates and/or runners • Perform short shots to determine fill pattern and verify proper vent location • Increase wall thickness to move gas trap to parting line • Increase shot size • Increase cushion Brittleness Melt temperature too low Degraded/Overheated material Gate location and/or size • Increase melt temperature • Increase injection speed • Measure melt temperature with pyrometer • Decrease melt temperature • Decrease back pressure • Use smaller barrel/excessive residence time • Relocate gate to nonstress area • Increase gate size to allow higher flow speed and lower molded-in stress Fibers on Surface (Splay) Melt temperature too low Insufficient packing • Increase melt temperature • Increase mold temperature • Increase injection speed • Increase pack and hold pressure, and time • Increase shot size • Increase gate size Sink Marks Part geometry too thick Melt temperature too hot Insufficient material volume • Reduce wall thickness • Reduce rib thickness • Decrease nozzle and barrel temperatures • Decrease mold temperature • Increase shot size • Increase injection rate • Increase packing pressure • Increase gate size Flash Injection pressure too high Excess material volume Melt and/or mold temperature too hot • Decrease injection pressure • Increase clamp pressure • Decrease injection speed • Increase transfer position • Decrease pack pressure • Decrease shot size • Decrease injection speed • Decrease nozzle and barrel temperatures • Decrease mold temperature • Decrease screw speed TROUBLESHOOTING RECOMMENDATIONS www.avient.com Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-09/lubrione-processing-guide.pdf
PROBLEM CAUSE SOLUTION Incomplete Fill Melt and/or mold temperature too cold Mold design Shot Size • Increase nozzle and barrel temperatures • Increase mold temperature • Increase injection speed • Increase pack and hold pressure • Increase nozzle tip diameter • Check thermocouples and heater bands • Enlarge or widen vents and increase number of vents • Check that vents are unplugged • Check that gates are unplugged • Enlarge gates and/or runners • Perform short shots to determine fill pattern and verify proper vent location • Increase wall thickness to move gas trap to parting line • Increase shot size • Increase cushion Brittleness Melt temperature too low Degraded/Overheated material Gate location and/or size • Increase melt temperature • Increase injection speed • Measure melt temperature with pyrometer • Decrease melt temperature • Decrease back pressure • Use smaller barrel/excessive residence time • Relocate gate to nonstress area • Increase gate size to allow higher flow speed and lower molded-in stress Fibers on Surface (Splay) Melt temperature too low Insufficient packing • Increase melt temperature • Increase mold temperature • Increase injection speed • Increase pack and hold pressure, and time • Increase shot size • Increase gate size Sink Marks Part geometry too thick Melt temperature too hot Insufficient material volume • Reduce wall thickness • Reduce rib thickness • Decrease nozzle and barrel temperatures • Decrease mold temperature • Increase shot size • Increase injection rate • Increase packing pressure • Increase gate size Flash Injection pressure too high Excess material volume Melt and/or mold temperature too hot • Decrease injection pressure • Increase clamp pressure • Decrease injection speed • Increase transfer position • Decrease pack pressure • Decrease shot size • Decrease injection speed • Decrease nozzle and barrel temperatures • Decrease mold temperature • Decrease screw speed TROUBLESHOOTING RECOMMENDATIONS PROBLEM CAUSE SOLUTION Excessive Shrink Too much orientation • Increase packing time and pressure • Increase hold pressure • Decrease melt temperature • Decrease mold temperature • Decrease injection speed • Decrease screw rpm • Increase venting • Increase cooling time Not Enough Shrink Too little orientation • Decrease packing pressure and time • Decrease hold pressure • Increase melt temperature • Increase mold temperature • Increase injection speed • Increase screw rpm • Decrease cooling time Burning Melt and/or mold temperature too hot Mold design Moisture • Decrease nozzle and barrel temperatures • Decrease mold temperature • Decrease injection speed • Clean, widen and increase number of vents • Increase gate size or number of gates • Verify material is dried at proper conditions Nozzle Drool Nozzle temperature too hot • Decrease nozzle temperature • Decrease back pressure • Increase screw decompression • Verify material has been dried at proper conditions Weld Lines Melt front temperatures too low Mold design • Increase pack and hold pressure • Increase melt temperature • Increase vent width and locations • Increase injection speed • Increase mold temperature • Decrease injection speed • Increase gate size • Perform short shots to determine fill pattern and verify proper vent location • Add vents and/or false ejector pin • Move gate location Warp Excessive orientation Mold design • Increase cooling time • Increase melt temperature • Decrease injection pressure and injection speed • Increase number of gates Sticking in Mold Cavities are overpacked Mold design Part is too hot • Decrease injection speed and pressure • Decrease pack and hold pressure • Decrease nozzle and barrel temperatures • Decrease mold temperature • Increase cooling time • Increase draft angle • Decrease nozzle and barrel temperatures • Decrease mold temperature • Increase cooling time TROUBLESHOOTING RECOMMENDATIONS Note: These are general processing conditions.
https://www.avient.com/sites/default/files/2020-12/artisan-thermoplastics-nylon-processing-guide.pdf
Sink Marks Melt too hot • Decrease nozzle and barrel temperatures • Decrease mold temperature Insufficient material volume • Adjust transfer position • Increase shot size • Increase injection rate • Increase packing pressure Part geometry too thick • Reduce wall thickness • Reduce rib thickness Processing Guide 5 Troubleshooting Recommendations Problem Cause Solution Flash Injection pressure too high • Decrease injection pressure • Increase clamp pressure • Decrease injection rate • Increase transfer position Excess material volume • Adjust transfer position • Decrease pack pressure • Decrease shot size • Decrease injection rate Melt or mold too hot • Decrease nozzle and barrel temperatures • Decrease mold temperature Loose clamp • Reset mold height • Increase clamp tonnage Shrink Too much shrink • Increase cooling time • Decrease mold temperature Too little shrink • Decrease cooling time • Increase mold temperature Burning Process related • Decrease nozzle and barrel temperatures • Decrease mold temperature • Decrease injection rate • Reduce decompression Mold design • Clean, widen and increase number of vents • Increase gate size to reduce shear Wet material • Verify material is dried at proper condition Nozzle Drool Nozzle temperature too hot • Decrease nozzle temperature • Decrease back pressure • Increase screw decompression • Verify material has been dried at proper conditions Incorrect nozzle • Use reverse taper tip Weld Lines Melt front temperatures are too low • Increase injection rate • Increase pack and hold pressure • Increase melt temperature • Increase mold temperature Mold design • Increase gate size • Identify end of fill pattern and verify proper vent location • Add vents or increase vent width • Move gate location 6 Artisan Pre-Colored Thermoplastics Problem Cause Solution Warp Process related • Increase melt temp • Reduce injection speed • Increase pack pressure • Increase pack time • Decrease mold temperature • Increase cool time Mold design • Non-uniform mold cooling Part design • Non-uniform wall thickness Thermolator incorrect temperature • Check settings • Inspect thermocouple Sticking in Mold Overfilled cavity • Decrease injection rate and pressure • Decrease hold pressure • Adjust transfer position • Decrease nozzle and barrel temperatures • Decrease mold temperature • Decrease cooling time Part too hot • Decrease barrel temperature • Decrease mold temperature • Increase cooling time Mold design • Increase draft angle • Polish cores in direction of ejection Black Specks Contamination • Purge machine Degradation • Reduce melt temperature • Reduce screw speed • Reduce back pressure Machine related • Check for wear on screw, barrel or check ring Delamination Process related • Increase melt temperature • Decrease injection speed • Purge barrel to eliminate material contamination Mold design • Reduce sharp corners in material flow path • Increase venting Troubleshooting Recommendations Processing Guide 7 Troubleshooting Recommendations Problem Cause Solution Discoloration Oversheared material • Decrease melt temperature • Decrease injection speed • Reduce residence time Mold design • Increase gate sizing Dry material • Check moisture of material to ensure it is within the recommended moisture percentage for molding 1.844.4AVIENT www.avient.com Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2021-11/artisan-ar7300-pre-colored-formulation-processing-guide.pdf
Sink Marks Melt too hot • Decrease nozzle and barrel temperatures • Decrease mold temperature Insufficient material volume • Adjust transfer position • Increase shot size • Increase injection rate • Increase packing pressure Part geometry too thick • Reduce wall thickness • Reduce rib thickness TROUBLESHOOTING RECOMMENDATIONS PROBLEM CAUSE SOLUTION Flash Injection pressure too high • Decrease injection pressure • Increase clamp pressure • Decrease injection rate • Increase transfer position Excess material volume • Adjust transfer position • Decrease pack pressure • Decrease shot size • Decrease injection rate Melt and/or mold temperature too hot • Decrease nozzle and barrel temperatures • Decrease mold temperature Loose clamp • Reset mold height • Increase clamp tonnage Shrink Too much shrink • Increase cooling time • Decrease mold temperature Too little shrink • Decrease cooling time • Increase mold temperature Burning Process related • Decrease nozzle and barrel temperatures • Decrease mold temperature • Decrease injection rate • Reduce decompression Mold design • Clean, widen and increase number of vents • Increase gate size to reduce shear Wet material • Verify material is dried at proper condition Nozzle Drool Nozzle temperature too hot • Decrease nozzle temperature • Decrease back pressure • Increase screw decompression • Verify material has been dried at proper conditions Incorrect nozzle • Use reverse taper tip Weld Lines Melt front temperatures are too low • Increase injection rate • Increase pack and hold pressure • Increase melt temperature • Increase mold temperature Mold design • Increase gate size • Identify end of fill pattern and verify proper vent location • Add vents or increase vent width • Move gate location TROUBLESHOOTING RECOMMENDATIONS PROBLEM CAUSE SOLUTION Warp Process related • Increase melt temperature • Reduce injection speed • Increase pack pressure • Increase pack time • Decrease mold temperature • Increase cool time Mold design • Non-uniform mold cooling Part design • Non-uniform wall thickness Thermolator incorrect temperature • Check settings • Inspect thermocouple Sticking in Mold Overfilled cavity • Decrease injection rate and pressure • Decrease hold pressure • Adjust transfer position • Decrease nozzle and barrel temperatures • Decrease mold temperature • Decrease cooling time Part too hot • Decrease barrel temperature • Decrease mold temperature • Increase cooling time Mold design • Increase draft angle • Polish cores in direction of ejection Black Specks Contamination • Purge machine Degradation • Reduce melt temperature • Reduce screw speed • Reduce back pressure Machine related • Check for wear on screw, barrel or check ring Delamination Process related • Increase melt temperature • Decrease injection speed • Purge barrel to eliminate material contamination Mold design • Reduce sharp corners in material flow path • Increase venting TROUBLESHOOTING RECOMMENDATIONS PROBLEM CAUSE SOLUTION Discoloration Oversheared material • Decrease melt temperature • Decrease injection speed • Reduce residence time Mold design • Increase gate sizing Dry material • Check moisture of material to ensure it is within the recommended moisture percentage for molding TROUBLESHOOTING RECOMMENDATIONS 1.844.4AVIENT www.avient.com Copyright © 2021, Avient Corporation.
https://www.avient.com/sites/default/files/2024-03/Nymax _ Nymax REC Processing Guide.pdf
Degraded/ overheated material • Decrease melt temperature • Decrease back pressure • Use smaller barrel • Decrease injection speed Gate location and/or size • Relocate gate to nonstress area • Increase gate size to allow higher flow rate and lower molded in stress Fibers/Minerals on Surface or Uneven Surface Appearance Melt temperature too low • Increase melt temperature • Increase mold temperature • Increase injection speed Insufficient packing • Increase hold pressure and time • Increase shot size Processing Guide 5 Problem Cause Solution Sink Marks Part geometry too thick • Reduce wall thickness • Reduce rib thickness Melt too hot • Decrease nozzle and barrel temperatures • Decrease mold temperature Insufficient material volume • Increase shot size • Increase injection rate • Increase packing pressure • Increase gate size Flash Injection pressure too high • Decrease injection pressure • Increase clamp pressure • Decrease injection rate • Increase transfer position Excess material volume • Adjust transfer position • Decrease pack pressure • Decrease shot size • Decrease injection rate Melt and/or mold too hot • Decrease nozzle and barrel temperatures • Decrease mold temperature • Decrease screw speed Loose clamp • Reset mold height • Increase clamp tonnage Shrink Too much shrink • Increase cooling time • Decrease mold temperature Too little shrink • Decrease cooling time • Increase mold temperature Troubleshooting Recommendations 6 Nymax Polymer Formulations Troubleshooting Recommendations Problem Cause Solution Burning Process related • Decrease nozzle and barrel temperatures • Decrease mold temperature • Decrease injection rate Mold design • Clean, widen and increase number of vents • Increase gate size to reduce shear Wet material • Check moisture.
https://www.avient.com/sites/default/files/resources/FAQs%2520for%2520PolyOne%2520GHS%2520Requirements%2520Ver%252006%2520April%25202015.pdf
Q15: Will GHS change how product labels are marked for transport of hazardous ingredients?
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Investor%2520Day%25205-18-15.pdf
Garratt 3:40 PolyOne Distribution Mark Crist 4:10 Financial Highlights and Goals Bradley C.
Garratt Senior Vice President, President of Performance Products & Solutions John Midea Senior Vice President, Global Operations & Process Improvement Mark Crist Senior Vice President, President of PolyOne Distribution Cathy Dodd Vice President, Marketing Chris Murphy Vice President, Research & Development, Chief Innovation Officer Kurt Schuering Vice President, Global Key Account Management The Leaders Behind the Team PolyOne Corporation Page 8 Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2014 2015 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • Substantial EPS growth from $0.13 to all-time high of $1.80 • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Specialty mix expands to 65% of Operating Income – strongest mix of earnings in history • Accelerating growth • Deliver consistent double digit annual EPS growth • Maintain >35% vitality index • Pursue strategic acquisitions that expand specialty offerings and geographic breadth • Invest and grow current and next generation talent PolyOne Corporation Page 9 2006 2014 “Where we were” “Where we are” Operating Income % Specialty: Global Color, Additives & Inks 1.7% 14.7% Global Specialty Engineered Materials 1.1% 12.1% Designed Structures & Solutions 1.4%(2012) 7.3% Performance Products & Solutions 5.5% 7.7% Distribution 2.6% 6.1% Specialty Platform % of Operating Income 6.0% 65% ROIC 5.0% 11.3% Adjusted EPS Growth N/A 37% Proof of Performance PolyOne Corporation Page 10 2% 34% 43% 62% 65% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2014 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty Old PolyOne Mix Shift Highlights Specialty Transformation New PolyOne Transformation Specialty OI $5M $46M $87M $195M $242M *Operating Income excludes corporate charges and special items PolyOne Corporation Page 11 2014 2015 Target “Where we are” (Est. in 2012) Operating Income % Specialty: Global Color, Additives & Inks 14.7% 12 – 16% Global Specialty Engineered Materials 12.1% 12 – 16% Designed Structures & Solutions 7.3% 8 – 10% Performance Products & Solutions 7.7% 9 – 12% Distribution 6.1% 6 – 7.5% Specialty Platform % of Operating Income 65% 65 – 75% ROIC 11.3% 15% Adjusted EPS Growth 37% Double Digit Expansion Proof of Performance PolyOne Corporation Page 12 • Sold non-core resin assets – EPS dilutive • Completed acquisition of Spartech • Housing starts below 1.25 million units Single family units 30% below expectations • Longstanding weakness in Europe, and decline in Euro Successfully Navigating Change Since 2012 PolyOne Corporation Page 13 -100% 0% 100% 200% 300% 400% 500% 600% POL S&P 500 Strategy and Execution Drive Results $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 '06 '07 '08 '09 '10 '11 '12 '13 '14 ‘06-‘14 Adjusted EPS CAGR = 40% Adjusted EPS Share Price vs.
url=http://appliancerepair-salt-lake-city.com/sub-zero-appliance-repair-salt-lake-city/subzero-3d-logo/&rct=j&frm=1&q=&esrc=s&sa=U&ei=-vQmVb-MCefIsQTwwYHQAg&ved=0CBYQ9QEwAA&sig2=qX2fTujBfVO6eYzgLN-xVg&usg=AFQjCNHoUQFUZn7iH7fwVxOz9-WdcIpngA PolyOne Corporation Page 53 Geographic Growth Opportunities Mexico represents growth, spurred by: • Robust demand in Automotive • Re-shoring from Asia • PolyOne collaboration China is a $2B PVC market; 2nd largest in the world: • A new tax license enables domestic (vs. export) business • We have expanded capacity • We are investing in capability Performance Products & Solutions PolyOne Corporation Page 54 Addressable Market ($ millions) $300 $150 $200 Innovation Pipeline Potential Performance Products & Solutions Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 0 2 0 1 0 3 0 1 1 1 5 3 1 1 1 Breakthrough Platform Derivative PolyOne Corporation Page 55 Megatrends Aligned with Key End Markets Increasing Energy Efficiency Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer Performance Products & Solutions PolyOne Corporation Page 56 Healthcare Solutions LED Lighting Key Initiatives Eco-Conscious Solutions $25M Revenue potential $30M Revenue potential $60M Revenue Potential Performance Products & Solutions PolyOne Corporation Page 57 Platinum Vision 4.3% 6.3% 7.2% 7.7% 10-12% 2011 2012 2013 2014 2020 Platinum Vision World Class Operating Margin Accelerating Growth Performance Products & Solutions Market Growth/ Megatrends Innovation Collaboration Geographic Expansion PolyOne Corporation Page 58 Summary • Business evolution from volume to value • Business is at an inflection point • Growth will be driven by: Economic & Megatrend alignment Innovation Collaboration across PolyOne Geographic sales expansion in China and Mexico Performance Products & Solutions PolyOne Corporation Page 59 PolyOne Distribution Mark Crist President, Distribution PolyOne Corporation Page 60 At a Glance PolyOne Distribution 15% 52% 2006 2014 Key Suppliers 2014 Revenues: $1.1 Billion ROIC Appliances 6% Building & Construction 5% Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 15% Packaging 4% Transportation 25% Wire & Cable 3% http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 61 What We Do Processing Expertise World-Class Supply Chain Deep Customer Relationships Market Consultation Right the First Time… Every Time PolyOne Corporation Page 62 What We Have Delivered 2.6% 3.5% 4.6% 6.4% 6.1% 2006 2008 2010 2012 2014 Operating Margin $19 $28 $42 $66 $68 2006 2008 2010 2012 2014 Operating Income ($M) • World class supplier line card • Differentiating with service and operational excellence • Key portfolio additions with DuPont, Bayer and Ineos • Value based selling and discipline PolyOne Distribution PolyOne Corporation Page 63 Accelerating Growth PolyOne Distribution Market Growth/ Megatrends Commercial Investment Cross-Selling & Collaboration Growth in Targeted Areas PolyOne Corporation Page 64 Who We Are Growing With PolyOne Distribution http://www.google.com/url?
https://www.avient.com/sites/default/files/resources/PolyOne%25202011%2520Annual%2520Report.pdf
This past year was one marked by significant milestones and record-breaking performance.
YesÍ No‘ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
CHAPPELOW Vice President, Innovation, Sustainability and Chief Innovation Officer MARK D.