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
Companies & Associations

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

Dow Chemical to merge chlorine operations with Olin

March 27, 2015 12:43 pm ET

Dow Chemical Co. is combining a large part of its chlorine value chain with specialty chemicals and ammunition maker Olin Corp. to create a global...    More

Image

Eastman Chemical expanding Tritan co-polyester capacity

March 27, 2015 10:00 am ET

Eastman Chemical Co.'s Tritan-brand co-polyester business continues to grow, with 35 million pounds of capacity added late last year and a second...    More

Image

PolyOne's Patterson focused on keeping the momentum going

March 27, 2015 9:30 am ET

New PolyOne CEO Robert Patterson sees a lot of good things when he looks at his company, which ranks as North America's largest compounder and...    More

Image

Improvements to Radici's nylon line takes it into more applications

March 27, 2015 9:00 am ET

Radici Group, the Italian-headquartered materials firm, outlined the benefits of its Radilon and Radistrong nylon products at NPE 2015.    More

Sun Plastech, Plastics Color Corp. note major milestones at NPE

March 27, 2015 9:00 am ET

Sun Plastech Inc. and Plastics Color Corp. — two well-known materials firms — are marking anniversaries at NPE 2015.    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