A. Schulman sees increase in sales and profit

By Frank Esposito
Senior Staff Reporter

Published: April 9, 2013 3:52 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations A. Schulman Inc., Ferro Corp.

FAIRLAWN, OHIO – Materials firm A. Schulman Inc. saw its sales and profit both increase in the first half of its 2013 fiscal year.

Schulman's sales for the six months ended Feb. 28 were up almost five percent to just under $1.06 billion, according to an April 8 news release from the Fairlawn, Ohio-based firm. First-half profit also grew almost 4 percent to just under $24.2 million.

But Schulman Chairman, President and CEO Joseph Gingo cautioned that slower growth in Schulman's fiscal second quarter could lead to additional consolidations to better align the firm's capacity with current market demand.

The fiscal second quarter "was the first quarter in quite some time where our Americas and Asia Pacific segments could not offset softness in our Europe, Middle East and Africa segment," Gingo said in the release. As a result of these expectations, Schulman decreased its full year adjusted net income outlook to $2.08-$2.13 per share.

Slowness in the Europe, Middle East and Africa (EMEA) segment particularly affects Schulman, since that region accounted for about 65 percent of the firm's first-half sales. EMEA sales grew about one percent in the first half, even though sales volume to that region in pounds essentially was flat.

Schulman's Americas sales volume in pounds had a much better fiscal first half, increasing almost 12 percent.

In the release, Gingo also addressed Schulman's ongoing negotiations to acquire specialty chemicals and plastcs maker Ferro Corp. Of Mayfield Heights, Ohio. "We believe our offer for Ferro merits serious consideration," he said. "And we continue to engage Ferro shareholders in hopes that we can enter into mutually beneficial conversations with their board."

Ferro officials rejected Schulman's initial bid to acquire the firm for $6.50 per share in a deal with a total value of more than $850 million.

Wall Street didn't respond well to Schulman's quarterly results, driving the firm's per-share stock price down almost 11 percent to $26.60 in early trading April 9.


Comments

A. Schulman sees increase in sales and profit

By Frank Esposito
Senior Staff Reporter

Published: April 9, 2013 3:52 pm ET

Post Your Comments


Back to story


More stories

Image

Contigo, Avex buy lets Newell Rubbermaid leapfrog new bottle development

July 22, 2014 4:11 pm ET

Newell Rubbermaid Inc. is ready to accelerate its move into the reusable water bottle business with the purchase of two on-the-go drinkware brands.    More

Image

DSM planning North American nylon plant

July 22, 2014 11:41 am ET

Materials firm Royal DSM NV plans to build a new nylon resin plant in North America, but no decision has been made on the plant's exact location.    More

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of...    More

China launches investments in Belarus

July 21, 2014 10:10 am ET

China is preparing to invest in a major bottle grade PET production project planned by the Belarus PET and polyester fibers producer...    More

Image

Huhtamäki to evaluate its films business

July 21, 2014 9:52 am ET

Finland-based plastics packaging group, Huhtamäki Oyj, has announced that it is evaluating its options regarding its films business, due to its growin...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events