Plastic raw materials supplier A. Schulman Inc. (SHLM: Quote), 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
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