A. Schulman Anticipates Lower Earnings for Its Fiscal 2000 Fourth Quarter.Business Editors AKRON, Ohio--(BUSINESS WIRE)--Sept. 29, 2000 A. Schulman Inc. (Nasdaq:SHLM) announced today that net income per share for its fourth quarter ending August 31, 2000 will be approximately 50 percent below the $.40 to $.43 consensus estimates of the financial community. Net income per share was $.48 in the fourth quarter last year, the highest fourth quarter per share earnings in the history of the Company. Net income in last year's fourth quarter was $15,034,000 on sales of $241.3 million. The Company said the major reasons for the anticipated shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. are lower profit margins due to higher costs of plastic feedstocks, weaker than anticipated volume and deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the value of the Euro. In addition, the Company was unable to utilize anticipated tax benefits, which resulted in higher than expected income taxes. "Profit margins have been lower due to a significant increase in the cost of plastic 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. throughout most of the fiscal year," said Terry L. Haines, president and chief executive officer. "It has been extremely difficult to offset the increase in raw material costs with higher sales prices due to competitive conditions in the marketplace. "Demand softened soft·en v. soft·ened, soft·en·ing, soft·ens v.tr. 1. To make soft or softer. 2. To undermine or reduce the strength, morale, or resistance of. 3. in the fiscal fourth quarter due to broad-based inventory reductions by customers. Customers reduced inventories in anticipation of 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 in 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 prices," Haines said. Looking ahead, Haines said, "The current outlook for the first fiscal quarter ending November 30, 2000 is weaker than originally forecast. We anticipate continuing margin pressure, some softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in demand and no significant improvement in the Euro, which by itself could adversely affect earnings by up to $.05 per share at present levels to the dollar. We currently anticipate that earnings could be off at least 25 percent from last year's first quarter." Earnings in the first quarter last year were $11,942,000 or $.38 per share. These earnings included a one-time insurance gain of $787,000 or $.02 per share. A. Schulman will release its fiscal 2000 fourth quarter and year-end results on October 20, 2000. Separately, the Company said it plans to announce its regular quarterly dividend on October 6, 2000. Headquartered in Akron, Ohio Akron is a city in the U.S. state of Ohio and the county seat of Summit County.GR6 The municipality is located in northeastern Ohio on the Cuyahoga River between Cleveland to the north and Canton to the south, approximately 60 miles (96 km) west of , A. Schulman is a leading international supplier of high-performance plastic compounds and resins. These materials are used in a variety of consumer, industrial, automotive and packaging applications. The Company employs about 2,400 people and has 13 manufacturing facilities 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. , Europe, Mexico and the Asia-Pacific region. Revenues for the fiscal year ended August 31, 1999, were $986 million. Additional information about A. Schulman can be found on the World Wide Web at www.aschulman.com. Statements in this release which are not historical facts are forward looking statements which involve risks and uncertainties and actual events or results could differ materially from those expressed or implied in this release. These "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " are based on currently available information. They are also inherently uncertain, and investors must recognize that events could turn out to be significantly different from what was expected. Examples of such uncertainties include, but are not limited to, the following: -- Worldwide and regional economic, business and political conditions -- Fluctuations in the value of the currencies in major areas where the Company operates, i.e., the U.S. dollar, the Euro, U.K. pound sterling, Canadian dollar, Mexican peso and Indonesian rupiah -- Fluctuations in the prices of plastic resins and other raw materials -- Changes in customer demand and requirements # # # |
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