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

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