iStock

Shares of chemical-maker PolyOne (POL - Get Report) are up 10% to $29.60 Tuesday after the company announced it was raising its second-quarter earnings guidance. 

The Cleveland-based company now expects to earn between 72 cents and 74 cents per share, up from its previous guidance of 68 cents EPS. Analysts forecast the company to report earnings of 70 cents per share. 

"We are achieving better-than-expected margins in all segments from pricing actions, improved mix and cost reductions," said CEO Robert M. Patterson. "I want to highlight our Specialty Engineered Materials segment, which is overcoming continued weakness in Europe and China with gains in composites and wire and cable applications. We have invested heavily in composites over the last few years and are now delivering with multiple new business wins."

PolyOne shares are up 5.3% year to date, but the stock is down 32% over the past 12 months. 

"We have also seen modest improvements in certain end markets such as construction in North America. This is positively impacting our Performance Products and Solutions segment beyond our previous expectations at the beginning of the quarter," Patterson said.