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