Sales rise but profit slips for A. Schulman

By Frank Esposito
Senior Staff Reporter

Published: October 29, 2013 4:42 pm ET
Updated: October 29, 2013 4:44 pm ET

Related to this story

Topics Materials, Materials Suppliers
Companies & Associations A. Schulman Inc.

Materials supplier A. Schulman Inc. has wrapped up a 2013 fiscal year in which sales edged up but profit slumped.

For the year ended Aug. 31, Schulman posted sales of just over $2.1 billion, up 3 percent vs. the prior fiscal year. However, profit at the Fairlawn, Ohio-based compounder and resin distributor slipped almost 40 percent to just under $33 million.

The Europe/Middle East/Africa region accounted for almost 66 percent of Schulman’s sales in fiscal 2013, with the Americas generating 28 percent and the remainder coming from the Asia Pacific region. The Americas were the firm’s fastest-growing sales region in fiscal 2013, with sales up almost 8 percent.

In an Oct. 24 news release, Schulman Chairman, President and CEO Joseph Gingo said that for the past three years, the firm “has executed on our strategies and experienced steady growth despite a stagnant global economy.”

“I'm disappointed that we did not achieve another consecutive year of adjusted earnings per share growth for the company,” he added. “Despite our shortfall in the fiscal third quarter, we're encouraged by a stronger fiscal fourth quarter and believe that our decisive actions have put us back on track toward earnings improvement.”

Gingo also said that Schulman “saw signs of strength in Europe resulting in year-over-year improvement in sales and gross profit in the quarter."

Fiscal 2013 was an active year for Schulman on the M&A front, as the firm bought two compounding/distribution firms — Network Polymers of Akron, Ohio, and Perrite Group of Cheshire, England.

Schulman spent a total of about $100 million on those two deals. Network and Perrite have combined annual sales of almost $200 million. Schulman now has made eight acquisitions in the last four years.

Schulman also generated headlines in fiscal 2013 when it bid almost $600 million to acquire specialty chemicals maker and compounder Ferro Corp. of Mayfield Heights, Ohio. That offer, however, was turned down by Ferro management.

At Schulman, sales volume in pounds grew 2 percent during fiscal 2013 to just over 1.9 billion pounds. On Wall Street, Schulman’s per-share stock price was under $30 in January but was near $34 in early trading Oct. 29, for an increase of almost 17 percent.


Comments

Sales rise but profit slips for A. Schulman

By Frank Esposito
Senior Staff Reporter

Published: October 29, 2013 4:42 pm ET
Updated: October 29, 2013 4:44 pm ET

Post Your Comments


Back to story


More stories

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

BASF pre-tax earnings rise, but will miss financial targets for 2015

October 24, 2014 10:16 am ET

BASF SE has raised its expectations for pre-tax earnings in 2014 but warned that it would not hit its financial targets for next year.    More

Image

Sabic, Shell cancel expansion for SADAF joint venture in Saudi Arabia

October 24, 2014 9:19 am ET

Saudi Basic Industries Corp. and Royal Dutch Shell have cancelled plans to expand an existing petrochemical joint venture in Saudi Arabia following...    More

Image

Sadara CEO says Middle East now has 20 percent of global ethylene capacity

October 24, 2014 9:33 am ET

Sadara CEO Ziad Al-Labban claims that the Middle East's ethylene capacity is now 20 percent of global production.    More

Image

PolyOne increases quarterly profits despite falling sales

October 23, 2014 4:55 pm ET

North American compounding leader PolyOne Corp. saw its third-quarter profit increase, even as sales fell vs. the year-ago period.    More

Market Reports

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 million dollar 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

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

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

More Events