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PolyOne Corporation Message Board

  • nofool2u nofool2u Dec 19, 2000 1:34 PM Flag

    What Next?

    As a non-employee shareholder I would like to
    know what this company is doing to address the
    problems that are riddled throughout these posts. Profits
    is the name of the game not growth as you can
    clearly see by the merger.Is there a plan in place to
    close plants, layoff workforce, downsize management,
    anything to increase there margins.

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    • What about the Techmer and old Hanna arbitration,
      any news? One way to raise some cash would be to sell
      Techmer back to the old management.

      If the
      management of POL doesn't turn this tugboat around soon,
      grab a life preserver and jump in. The shareholders
      are already up to their neck!

    • POL, I believe, has over $600 million of debt
      outstanding, with, I believe, over $200 million coming due
      within the next 6 months. How does this get refinanced?
      I think they will have a credit downgrade, and
      their refinancing costs will be up by a lot. If they
      try to do a public debt deal they will pay through
      the nose because they will no longer have an
      investment grade rating. I think mgt. of this company, at
      least on the finance side, must have a priority focus
      on refinancing their debt. This is a problem that
      doesn't just take care of itself, and needs a solution.
      Any thoughts?

    • There were big plans in place the 4th quarter of
      '99 with teams of people to carry them out, then
      Ashkettle came on board and put everything on hold. Five
      plant where to be closed and many heads to roll. That
      really would not have improved anything except lower
      payroll somewhat, which would have been off set by the
      severance packages being drawn up. The big problem with
      this company is the corporate overhead that the
      individual plants have to support. Also this company used to
      run profit centers, now they are called cost centers
      and no one speaks in terms of EBIT, or BOTTOM LINE,
      and individual operations managers if you can call
      them that, are not responsible for sales and earnings
      of their plants. They are really nothing more than a
      bunch of overpaid baby sitters. Their sole
      responsibilty is to see that everyone comes to work, works
      safely, and then schedule as many meetings a day as
      humanly possible so they look like the are doing
      My advice to you NoFool is, if this sorry stock ever
      hits $10 bail out don't look back and do not buy Poly1
      ever again.
      Geon was not prepared for the problems
      that Hanna created and will not be able to turn this
      company around for probally five years at the earliest.

      • 2 Replies to suite36_5000
      • I think that way too much attention is being
        given to the problems associated with Hanna. The buying
        public should have been aware of the issues at Hanna and
        therefore discounted the price well ahead of the merger
        with Geon. The current demise of this stock is due to
        the total blow out of the industry and the company in
        general. The basis of this company, the old Geon business
        segments can not be setting the world on fire either. I
        believe this is why the stock is down, not just Hanna's
        performance. For example, it would be significant to know what
        the talking heads at P1 are saying about business
        segment results. By all accounts, housing starts are
        slowing down and the car industry is too, that can not be
        good for a company like this, can it? Does anyone have
        any news on what the compound group is forcasting for
        the 4th quarter and the 1st Q next year? That will be
        very telling as to the turn around of this baby.

      • I think the real problem is the debt load. Not
        that operations and management, cost structure, etc.
        are not big problems, but as I recall, POL has a lot
        of debt, and much of it, $200 million +, comes due
        within a year. How will they refinance this debt with a
        recession staring them in the face and losses about to be
        reported? There is no question in my mind that the debt
        ratings for POL are downgraded very soon to junk status.
        They are 'debt challenged', and refinancing a
        non-investment grade issuer in this market will be VERY
        difficult--not impossible--but difficult, and

        They should probably do a rights offering to raise
        more equity and help prop up the company credit.

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