Schulman reports third quarter results

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Tuesday, July 10, 2012

; o4 ]( Q; s5 b" _8 j: [- ^Akron, OH - A. Schulman reported net income for the third quarter ended May 31, of $17 million, or $0.57 per diluted share, compared with net income of $18.8 million, or $0.60 per diluted share, for the comparable period last year. The translation effect of foreign currencies negatively impacted net income for the quarter by $0.8 million. The fiscal 2012 third-quarter net income per diluted share of $0.57 included certain after-tax charges of $3.4 million, or $0.12 per diluted share, primarily related to non-cash asset impairment charges and costs associated with restructuring initiatives. Excluding these items, net income for the fiscal 2012 third quarter was $20.4 million, or $0.69 per diluted share, compared with $20.3 million, or $0.65 per diluted share, for the prior-year period. Last year’s third quarter included certain after-tax charges of $1.5 million, or $0.05 per diluted share, primarily related to restructuring initiatives. Net sales for the fiscal 2012 third quarter were $569.1 million compared with $611.1 million for the same period last year. Net sales declined primarily 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 M. Gingo, chairman, president and chief executive officer. “As expected, our Americas and Asia Pacific segments are significantly outpacing prior-year results while our EMEA segment, including the successful integration of our Elian acquisition, is working aggressively to offset the extremely difficult market conditions. We continue to focus on what’s within our control and we remain committed to developing high-value-added products and implementing cost-control initiatives to improve performance.” Gross profit for the quarter was $76.7 million, compared with $78.9 million last year. Excluding the impact of foreign currency translation, gross profit increased by $0.8 million. Gross profit per pound was 15.4 cents, compared with 14.7 cents for the same period last year. This increase reflects the Company’s continual product mix improvement, the benefits of prior restructuring initiatives, and ongoing efforts to control costs.