A. SCHULMAN REPORTS RECORD RESULTS FOR THIRD QUARTER AND NINE MONTHS.AKRON Akron (ăk`rən), city (1990 pop. 223,019), seat of Summit co., NE Ohio, on the Little Cuyahoga River; inc. 1865. Once the heart of the nation's rubber industry, Akron still contains the headquarters of some rubber corporations and chemical and , Ohio--(BUSINESS WIRE)--July 12, 1995--A. Schulman Schulman is a surname, usually that of a Jewish person. The name is derived from the Yiddish word shul ("synagogue"). Some well-known people with this name are:
Net income for the third quarter ended May 31, 1995 was $15,239,000 or $.41 per common share, an increase of 26% over earnings of $12,067,000 or $.32 per share for the same quarter last year. Sales were $284.5 million or 40% higher than sales of $203.8 million for the 1994 third quarter. For the nine month period ended May 31, 1995, net income of $41,571,000 or $1.11 per common share was 35% above last year's earnings of $30,810,000 or $.82 per share. Sales were $785.4 million, an increase of 45% over sales of $539.8 million for the comparable 1994 period. "Our record sales and net income were the result of tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. increases of 6% for the quarter and 16% for the nine month period, plus higher selling prices and the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. translation effects from the lower value of the U.S. dollar," said Terry L. Haines, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations provided all of the increase in quarterly earnings. Profits were up in our European operations by 50% for both the quarter and nine month periods. Manufacturing income constituted over 60% of the overall increase in European income. Profits were also higher in our merchant and distribution activities, mainly because of higher selling prices," Haines noted. The translation effect from the weaker U.S. dollar continued to have a positive and important impact on A. Schulman's European operations. The translation effect increased net income by $1,615,000 or $.04 per share for the quarter and $3,454,000 or $.09 per share for the nine months. In addition, the translation effect increased sales by $25.3 million for the quarter and $54.4 million for the nine month period. Profits in the Company's North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. were up 9% for the nine month period, but were down 17% in the quarter. Total tonnage was up 16% for the quarter, but lower margins and higher interest expense were the primary reasons for the decline in profits. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. manufacturing tonnage was up 37% for the quarter mainly due to the acquisition of Texas Polymer Services on February 28, 1995, the Company reported. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the quarter were 16% compared with 17.6% last year. Profit margins declined due to competitive price pressures and the difficulty in passing on the increased cost of resins resins, n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations. in the form of higher selling prices. "The acquisition of assets Acquisition of assets A merger or consolidation in which an acquirer purchases the selling firm's assets. from J.M. Huber, completed on February 28, 1995, will provide the additional capacity we require for future growth," Haines said. "We are pleased with the performance of this facility during its first quarter of operation. This operation, renamed Texas Polymer Services, Inc., will provide new opportunities for our North American business." Capital expenditures for the nine months ended May 31, 1995 were $47.4 million, a new record for A. Schulman. "These expenditures, which include the assets of Texas Polymer Services, provide the foundation for the continuing growth of our manufacturing business," Haines stated. "Currently, we are completing the installation of a new manufacturing line in our Givet, France facility. We will commence operations of this line in September, 1995. This project, which also includes additional warehouse space, will cost approximately $3.6 million. "We are also in the final construction stages of our new manufacturing facility in Mexico. This project, with a cost of $15 million, is scheduled for start-up Start-up The earliest stage of a new business venture. at the end of August 1995. This facility will enable us to participate in the anticipated growth of the Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum and Latin American markets," Haines emphasized. "We sold, on June 30, 1995, the assets of our East St. Louis, Illinois East St. Louis is a city located in St. Clair County, Illinois, USA, directly across the Mississippi River from St. Louis, Missouri. As of the 2000 census, the city had a total population of 31,542. plant. This facility produced rubber shims and tie pads, a business established in the early days of A. Schulman. Strategically, this business did not fit our future growth plans. The financial impact of this transaction is not significant," he said. "In April 1995, we noted some backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. reduction due to our increased capacities and as customers began to reduce inventories in anticipation of improving supplies of plastic resins and stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing pricing. This trend continued through the month of May and it became increasingly difficult to obtain satisfactory profit margins, especially in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ," Haines commented. "Recently, we have noted an overall improvement in our European backlogs, even as we enter the traditional holiday periods. Although we believe resin pricing has stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. , there is some concern in the marketplace of potential softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. which would result in continuing pressure on profit margins. "The current economic situation and outlook for the next few months are unclear. Nevertheless, fiscal 1995 will be another record year, and we remain confident in the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. potential of A. Schulman," he concluded. A. Schulman is a leading international supplier of high performance plastic compounds and resins. -0- A. Schulman, Inc. and its Consolidated Subsidiaries Financial Highlights
Three Months Ended
May 31, 1995 May 31, 1994
Net Sales $284,535,000 $203,766,000
Interest and Other Income 1,956,000 1,786,000
286,491,000 205,552,000
Cost of Sales 238,871,000 168,005,000
Other Costs and Expenses 22,146,000 17,910,000
261,017,000 185,915,000
Income before Taxes 25,474,000 19,637,000 Provision for U.S. and Foreign Income Taxes 10,235,000 7,570,000 Net Income $ 15,239,000 $ 12,067,000 Net Income per Share of Common Stock $0.41 $0.32 Average Number of Shares of Common Stock Outstanding 37,563,510 37,456,544
Nine Months Ended
May 31, 1995 May 31, 1994
Net Sales $785,413,000 $539,781,000
Interest and Other Income 5,244,000 5,749,000
790,657,000 545,530,000
Cost of Sales 656,787,000 444,364,000
Other Costs and Expenses 64,924,000 52,090,000
721,711,000 496,454,000
Income before Taxes 68,946,000 49,076,000 Provision for U.S. and Foreign Income Taxes 27,375,000 18,266,000 Net Income $ 41,571,000 $ 30,810,000 Net Income per Share of Common Stock $1.11 $0.82 Average Number of Shares of Common Stock Outstanding 37,532,687 37,431,450
Condensed Balance Sheet
May 31, 1995 August 31, 1994
Assets
Current Assets $518,542,000 $399,372,000
Other Assets 14,801,000 12,944,000
Net Property, Plant and Equipment 136,197,000 98,103,000
$669,540,000 $510,419,000
Liabilities and Stockholders' Equity
Current Liabilities $151,632,000 $108,364,000
Long-Term Debt 75,107,000 23,126,000
Deferred Credits and Other
Long-Term Liabilities, etc. 37,432,000 33,010,000
Stockholders' Equity 405,369,000 345,919,000
$669,540,000 $510,419,000
Supplemental Information (In thousands of dollars)
Three Months Ended Nine Months Ended
May 31, 1995 May 31, 1994 May 31, 1995 May 31, 1994
Net Sales
Manufacturing $164,890 $122,014 $452,984 $327,212
Merchant 64,856 40,319 176,264 105,364
Distribution 54,789 41,433 156,165 107,205
$284,535 $203,766 $785,413 $539,781
Gross Profit
Manufacturing $ 30,703 $ 24,549 $ 84,869 $ 65,441
Merchant 8,234 5,800 24,735 15,748
Distribution 6,727 5,412 19,022 14,228
$ 45,664 $ 35,761 $128,626 $ 95,417
CONTACT: A. Schulman Inc., Akron Robert A. Stefanko, 216/666-3751 |
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