FAIRLAWN, OHIO (July 10, 1:45 p.m. ET) – Resin compounder and distributor A. Schulman Inc. reported lower sales and profit for the fiscal 2012 third quarter.
For the quarter ended May 31, Fairlawn-based A. Schulman reported net income of $17 million, or 57 cents per diluted share, compared with net income of $18.8 million, or 60 cents per diluted share, for the like period last year.
A. Schulman said the fiscal 2012 third quarter included after-tax charges of $3.4 million, or 12 cents per diluted share, primarily related to non-cash asset impairment charges and costs associated with restructuring initiatives. Excluding those items, net income for the third quarter was $20.4 million, or 69 cents per diluted share, compared with $20.3 million, or 65 cents per diluted share, for the prior-year period.
Sales for the fiscal 2012 third quarter were $569.1 million, down 6.8% from $611.1 million in the like period last year. The company said the sales decline primarily was due to “a $23.5 million negative impact of foreign currency translation” and a 7% decrease in volume.
“Overcoming the economic and political headwinds in today's environment is a challenging task, and I am extremely proud of the efforts of our entire team in putting up some very strong numbers,” said Joseph Gingo, the company's chairman, president and CEO, in a statement.
“As expected, our Americas and Asia Pacific segments are significantly outpacing prior-year results while our (Europe, Middle East and Africa) segment … is working aggressively to offset the extremely difficult market conditions,” he said.
Gingo said the company sees 2012 adjusted earnings per share coming in between $2.03 to $2.07. MarketWatch.com reported that analysts polled by Thomson Reuters had been expecting $2.01 a share.