Sales down, but profit surges, at A. Schulman

By Frank Esposito
Senior Staff Reporter

Published: October 26, 2012 6:00 am ET

Related to this story

Topics Materials, Suppliers

FAIRLAWN, OHIO (Oct. 26, 1:15 p.m. ET) — A. Schulman Inc. — one of North America’s leading compounders — just wrapped up a fiscal year in which profit jumped more than 25 percent, even as sales dipped slightly.

Schulman’s sales for the year ended Aug. 31 were just over $2.1 billion, down almost 4 percent from sales of almost $2.2 billion in fiscal 2011. But profit surged almost 27 percent to just over $52 million in the same comparison.

“In fiscal 2012, we delivered on our promise to control what we could in a tough environment,” chairman, president and chief executive officer Joseph Gingo said in an Oct. 24 news release. “I’m pleased with our results.”

“With that said, we’ll aggressively look for ways to continue to deliver value to our shareholders given expected tepid global growth, at best, in fiscal 2013,” he added.

Schulman’s sales in the Americas grew eight percent to almost $559 million in fiscal 2012, while operating income more than doubled to almost $29 million. Sales in Europe, the Middle East and Africa, however, fell eight percent to just over $1.4 billion, as several European countries struggled financially. Operating income in that region fell 17 percent to less than $72 million.

The EMEA region continued to be Schulman’s primary sales region in fiscal 2012, contributing 67 percent of sales and almost 65 percent of operating income. The Americas chipped in with almost 27 percent of sales and just over 25 percent of operating income.

Schulman also made two acquisitions during fiscal 2012 and now has made six in the last three calendar years. Its fiscal 2012 purchases were specialty color concentrate maker Elian SAS of Oyonnax, France, and specialty compounder ECM Plastics Inc. of Worcester, Mass. Schulman paid $63 million for Elian and $36.5 million for ECM.

On Wall Street, Schulman’s per-share stock price has performed well during the 2012 calendar year so far. It began the year around $22 and was near $25.50 in early trading Oct. 26, for an increase of more than 15 percent.


Comments

Sales down, but profit surges, at A. Schulman

By Frank Esposito
Senior Staff Reporter

Published: October 26, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Polypropylene prices rise, while PE and PS fall

February 26, 2015 4:01 pm ET

North American prices for polyethylene and polystyrene resins continued to fall in February, while regional prices for polypropylene showed a...    More

Image

NFM Welding Engineers opens direct office in China

February 26, 2015 2:05 pm ET

MASSILLON, OHIO — Extrusion equipment manufacturer NFM Welding Engineers Inc. has opened a sales office in Dalian, China.    More

Image

Price and sustainability both key to success for carpet recycler

February 26, 2015 1:28 pm ET

DALLAS — A green message will get you in the door, but ultimately that sustainability message has to be backed up with quality at the right...    More

Image

3i to sell specialty chemicals company Azelis to Apax Partners

February 26, 2015 11:36 am ET

Azelis Holding SA, the specialty chemicals distributor, is being sold by its private equity owners 3i Group plc to another private investment outfit, ...    More

Image

Medical compounder adding two extrusion lines

February 25, 2015 3:49 pm ET

Compounding Solutions LLC plans to add two new co-rotating twin-screw extruders this year to raise its capacity and provide more flexibility.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events