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 reaches agreement with Third Point

November 21, 2014 9:11 am ET

Dow Chemical Co. has reached an agreement with the investment firm that has been trying to force the company to sell off some assets.More

Image

Ineos making its UK shale play

November 21, 2014 9:29 am ET

Chemical giant Ineos Group AG is planning to be the biggest player in the United Kingdom's shale gas industry.    More

Image

Total to buy majority stake in Polyblend

November 20, 2014 10:04 am ET

French oil and gas giant Total SA will buy a 68 percent stake in Germany's Polyblend GmbH, a subsidiary of Polymer-Chemie GmbH.    More

Image

Silica can replace plastic microbeads

November 19, 2014 6:00 am ET

As cosmetics and soap makers face pressure to remove plastic microbeads from their products, Evonik Industries touts its new silica-based microbeads...    More

Chase Plastics building new Indiana distribution center

November 18, 2014 11:13 am ET

Resin distributor Chase Plastics will invest $5.4 million to build a new distribution center in South Bend, Ind.    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

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

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