Schulman wraps up challenging 2009

FAIRLAWN, OHIO (Oct. 19, 12:45 p.m. ET) — A. Schulman Inc. just wrapped up an extremely challenging 2009 fiscal year.

The Fairlawn-based compounder and distributor posted a loss of almost $3 million in the year ended Aug. 31, as sales fell 36 percent to about $1.3 billion. Schulman had shown a profit of about $18 million in its 2008 fiscal year.

“We are encouraged that, despite significantly lower volumes, our strategic efforts to focus on higher-value-added products and reduce operating costs have resulted in strong [fourth-quarter] margin gains,” Schulman Chairman, President and CEO Joseph Gingo said in an Oct. 19 news release.

Europe accounted for 73 percent of Schulman’s sales in the just-completed fiscal year. Sales in that region were down 36 percent to about $936 million, while sales in North America — including masterbatches, engineering plastics and resin distribution — were down 38 percent to $296 million. Schulman’s sales in Asia were down eight percent to about $45 million in the 2009 fiscal year.

“For fiscal 2010, we anticipate continuing gradual improvement in our masterbatch operations and a possible return to lower levels in our engineered plastics division until the economy reflects a sustained upswing in durable goods consumption,” Gingo said in the release.

“As the economy recovers, our enviable cash position and performance-driven processes will help us meet demand and execute our acquisition strategy.”

On Wall Street, Schulman’s per-share stock price bottomed out near $12 in March but was near $20.50 in early trading Oct. 19. The firm ranks as one of North America’s 30 largest compounders, according to a Plastics News industry estimate.

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