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Nasdaq:SHLM
A.
Schulman, Inc. is engaged in the sale of plastic resins and compounds,
which are used as raw materials by manufacturers, custom molders and extruders
of a wide variety of plastic products and parts
A.
Schulman, Inc. est engagé dans la vente de résines en plastique
et de composés, qui sont employés comme matières premières
de matière par des fabricants, des molders faits sur commande et
des extrudeuses d'une grande variété de produits et de pièces
en plastique
A.
SCHULMAN REPORTS RESULTS FOR FISCAL 2007 SECOND QUARTER
AKRON, Ohio – April 5,
2007 – A. Schulman, Inc. (Nasdaq-GS: SHLM) announced today that net sales
for the fiscal second quarter ended February 28, 2007 were $412.8 million,
an 11.2% increase over last year’s second-quarter net sales of $371.2 million.
Tonnage was up 4.7% while the effect of changes in prices and product mix
was essentially flat. The translation effect of foreign currencies, primarily
the euro, increased sales by 6.6% or $24.5 million.
Net income for the fiscal
2007 second quarter was $1.6 million or $0.06 per diluted share compared
with $3.9 million or $0.12 per diluted share for the comparable quarter
last year. The 2007 quarter included $0.8 million in restructuring charges
and $0.7 million in accelerated depreciation. The 2006 quarter included
$5.0 million in charges from the extinguishment of debt, a $0.8 million
reduction in the firstquarter tax charge due to a decrease in dividends
to be repatriated from Europe, and $0.6 million of aftertax income for
the cancellation by suppliers of certain distribution agreements in Europe.
The translation effect of foreign currencies increased net income by $0.6
million in the fiscal 2007 second quarter.
Net sales for the six
months ended February 28, 2007 were $855.5 million, an increase of 11.4%
from $767.7 million for the prior-year six-month period. Tonnage accounted
for 4.4% of the increase, while price and mix contributed an additional
1.1%. The translation effect of foreign currencies increased sales by 5.9%
or $45.0 million.
Net income for the fiscal
2007 six-month period was $4.0 million or $0.15 per diluted share compared
with $16.2 million or $0.52 per share for the same period last year. Net
income for the current fiscal year period includes the items outlined above
as well as $0.3 million in accelerated depreciation and $0.1 million in
restructuring expense recorded during the first quarter of 2007, while
net income for the first six months of last year included $5.0 million
in charges from the extinguishment of debt, a tax charge of $2.2 million
related to the repatriation of dividends from Europe, and $0.6 million
of after-tax income for the cancellation by suppliers of certain distribution
agreements in Europe. Net income for the fiscal 2007 six-month period was
increased by $1.2 million due to the translation effect of foreign currencies,
primarily the euro.
“The overall weakness
in our markets has lasted longer than we originally expected,” said Terry
L. Haines, chairman, president and chief executive officer. “All the North
American markets, especially automotive, have remained slow throughout
the first six months of fiscal 2007, and we have taken
significant steps to
reduce costs and return our North American operations to profitability.
In Europe, although we are beginning to see some recovery in our key markets,
we have seen a shift to lower-margin products compared with last year.”
Pre-tax income was $6.7
million for the fiscal 2007 second quarter, a reduction of $2.0 million
from the prior-year quarter. Gross profit declined to $48.2 million or
11.7% of net sales from $50.6 million or 13.6% of net sales a year ago
primarily due to market weakness which drove lower margins in North
America and lower-margin
products in Europe. Pre-tax income was also affected by a rise in selling,
general and administrative
(SG&A) expenses resulting primarily from increases in foreign exchange
rates, along with legal and professional costs including business process
consultants, and compensation costs.
Pre-tax income for the
first six months of fiscal 2007 was $14.7 million compared with $31.6 million
last year. The decline was driven by gross profit weakness and SG&A
increases. The largest driver of the change in SG&A was the increase
in foreign exchange rates, followed by increases in legal and
professional costs, and
compensation costs. Gross profit for the six-month period decreased to
$97.7 million or 11.4% of net sales from $110.6 million or 14.4% of net
sales a year ago. The decrease in gross profit was primarily driven by
the market weakness which drove lower margins in North America and
lower-margin products
in Europe, primarily occurring during the first quarter of 2007 compared
with the first quarter of 2006 |
