Recent acquisitions led to a big gain in A. Schulman Inc.'s U.S./Canadian sales in the first half of the firm's 2015 fiscal year.
Schulman's sales in that region in the six months ended Feb. 28 were $73.5 million, up almost 36 percent vs. the same period in fiscal 2014, officials with the Fairlawn, Ohio-based firm said in an April 6 news release.
Officials cited the acquisitions of Prime Colorants Inc. and of the plastics business of Ferro Corp. as a main reason for the bump-up in sales. Schulman acquired Franklin, Tenn.-based Prime Colorants for $15 million in January 2014. It then added the Ferro business for $91 million in June 2014.
Schulman's U.S./Canadian sales volume in pounds also grew 19 percent in the first half of fiscal 2015. Operating income for all segments grew almost 9 percent to more than $63 million.
Foreign currency translation had a negative effect on Schulman's first-half sales, which were down more than 1 percent to $1.16 billion. In the release, President and CEO Bernard Rzepka said that in spite of the foreign currencies declines, the firm “is again committed … to realize another year of earnings per share growth.”
Schulman's recent $800 million purchase of Citadel Plastics is not yet reflected in its results. Schulman now has made 11 acquisitions in less than six years, but the Citadel deal — announced in March — was larger than the previous 10 put together.
On Wall Street, Schulman's per-share stock price began the 2015 calendar year under $40, but was near $47 in early trading April 10.
Schulman ranks as one of the largest compounders and concentrate makers in both North America and Europe.
