logo
Share SHARE
FONT-SIZE Plus   Neg

A. Schulman Profit Rises, But Sales Decline; Shares Fall

Plastic raw materials supplier A. Schulman Inc. (SHLM), Wednesday reported an increase in second-quarter profit, helped mainly by lower charges as compared to last year. However, adjusted profit declined, impacted by foreign currency translation and lower volumes.

Following the news, A. Schulman shares fell ten percent in after-hours trade on the Nasdaq.

Revenues for the quarter were impacted by negative foreign currency translation and lower volumes. Volumes declined 7.8 percent to 458.7 million pounds, but was partially offset by a 5.8 percent increase in selling price. Foreign currency translation had a negative impact of $11.7 million for the quarter.

A. Schulman, which makes plastic compounds and resins, said second-quarter net sales declined to $495.9 million from $508.3 million in the same-period last year.

Geographically, sales increased 9.4 percent to $129.6 million in the Americas, while EMEA sales dropped 6.7 percent to $332.6 million. Asia Pacific sales increased $0.4 million to $33.7 million.

The Akron, Ohio-based company's second-quarter net income improved to $9.1 million or $0.31 per share from $7.1 million or $0.23 per share last year.

The second-quarter results include one-time charges of $2.1 million compared to $5.0 million last year. Excluding the charges, adjusted net income dropped to $11.2 million or $0.38 per share from $12.1 million or $0.39 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.

Moving ahead, A. Schulman expects full-year 2012 net income to exceed the levels of fiscal-year 2011.

SHLM closed Wednesday's trading at $27.85, up 0.18%, on a volume of 0.2 million shares. However, in after-hours, stock fell 9.52%.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Procter & Gamble Co., (PG) Tuesday announced the promotion of David Taylor to the role of Chief Executive Officer, as the consumer goods giant replaces Chief Executive A.G. Lafley for the second time. David Taylor, a 35-year-veteran and currently Group President of Global Beauty, Grooming and Health... Anadarko Petroleum reported a plunge in second-quarter profit, hurt by weak oil prices, partly offset by some derivative gains. However, its earnings topped Street estimates, driven by operational efficiencies and sales of higher-margin oil. Anadarko shares... Micro-blogging site Twitter Inc said Tuesday after the markets closed that its second quarter net loss narrowed from last year, as revenue surged 61%. The company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
RELATED NEWS
Trade SHLM now with 
Follow RTT