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

RPC Group buying Iceland's Promens

November 27, 2014 8:46 am ET

In a major acquisition that combines two rigid packaging companies with international footprints, RPC Group plc has signed a 399 million euro ($497...    More

RheTech to commercialize hemp fibers to replace glass in PP

November 27, 2014 6:00 am ET

RheTech Inc. plan to commercialize its first hemp fiber compounds in January.    More

Image

Market growing, but compounders say customers remain 'cautious'

November 27, 2014 6:00 am ET

Everywhere they've looked, North American compounders and concentrate makers have seen numbers on the rise in 2014.    More

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Americhem beats weather woes at start of 2014 for good fiscal year

November 26, 2014 9:45 am ET

Gains from the automotive and construction markets provided a strong fiscal 2014 for Americhem Inc.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

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

January 14, 2015 - January 14, 2015Plastics in Automotive

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

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events