A. Schulman Posts Improved Net Income and Record Earnings Per Share for 1999 First Quarter; Says Outlook Positive for Fiscal 1999.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)--Jan. 12, 1999--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 first quarter was $12,818,000 or $.40 per common share compared with $12,533,000 or $.35 per share before the cumulative effect of an accounting change in the same quarter last year. The per share earnings of $.40 are the highest for any first quarter in the history of A. Schulman. Basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. per share earnings are the same. Sales totaled $258.6 million, down slightly because of lower selling prices resulting from declines 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. Last year's first quarter sales were $264.2 million. In November 1997, the FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). issued a new ruling requiring the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of business process re-engineering See reengineering. (business) Business Process Re-engineering - (BPR) Any radical change in the way in which an organisation performs its business activities. BPR involves a fundamental re-think of the business processes followed by a redesign of business activities to costs. Accordingly, in last year's first quarter, the Company wrote off $3,237,000 of such costs that were capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. as of August 31, 1997. This write-off, net of income taxes, amounted to $2,007,000 or $.06 per common share and was accounted for as a cumulative effect of an accounting change. After deducting the charge, net income for the quarter ended November 30, 1997 was $10,526,000 or $.29 per common share. The translation effect of foreign currencies was not a significant factor for the quarter. Translation reduced sales by $129,000 and increased net income by $95,000, less than $.01 per share. "We are pleased with the record first quarter per share earnings that were up 14% from last year. Overall, economic conditions were good and it was satisfying to record better margins in today's competitive environment," said Terry L. Haines, president and chief executive officer. "We have decided to add people to increase our presence in new areas of the world and to enable us to better serve our customers. We are also investing in state-of-the-art equipment and new business systems. These actions, of course, result in higher costs but will ensure future growth for A. Schulman." Profits in A. Schulman'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 12% for the quarter, primarily due to better margins. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. earnings were down 1.5%, due to higher expenses including costs from a major plastics trade show held every three years and additional costs arising from the planned implementation of a new business system. Total 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. was down slightly for the quarter. Volume in the Company's manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. declined 5.1% in Europe and 2.6% 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. . The lower volume also reduced capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. from 92% last year to 84% in the current quarter. "We have experienced some softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in order levels near the end of our fiscal first quarter. This softness continued into December," Haines said. The month of December is historically a period of reduced business activity, but Haines noted that demand was softer than normal. "Although recently there has been an improvement in orders, it will be difficult to maintain margins at the levels of our first quarter. We anticipate good business conditions in the months ahead, but will require a strong finish to assure good earnings for our second quarter," said Haines. "We believe worldwide economic conditions, although competitive, will provide a good base for business. Accordingly, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op on our outlook for the 1999 fiscal year," Haines added. "We have been aggressive buyers of our common shares," said Haines. "During the quarter ended November 30, 1998, we repurchased 1,049,500 shares for $16.6 million. These purchases are an excellent investment and reflect our commitment to enhance shareholder value." The Company has 4.8 million shares remaining under a 6 million share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. authorization The right or permission to use a system resource; the process of granting access. See access control. approved by A. Schulman's Board in August 1998. As of November 30, 1998, there were 32,229,005 shares outstanding compared with 35,886,193 shares at the same period last year. 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 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. . These materials are used in a variety of consumer, industrial, automotive and packaging applications. The Company employs about 2,300 people and has 13 manufacturing facilities in North America, Europe, Mexico and the Asia-Pacific region. Revenues for the fiscal year ended August 31, 1998 were approximately $1 billion. 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 Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents , Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum peso and Indonesian rupiah The rupiah (Rp) is the official currency of Indonesia. Issued and controlled by the Bank of Indonesia, the ISO 4217 currency code for the Indonesian rupiah is IDR. The symbol used on all banknotes and coins are Rp. The name derives from the Indian monetary unit rupee. - Fluctuations in the prices of plastic resins and other raw materials - Changes in customer demand and requirements -0-
A. Schulman, Inc. and its Consolidated Subsidiaries
Financial Highlights
Three Months Ended
Nov. 30, 1998 Nov. 30, 1997
_____________ _____________
Net Sales $258,646,000 $264,208,000
Interest and Other Income 651,000 931,000
____________ ____________
259,297,000 265,139,000
____________ ____________
Cost of Sales 209,196,000 220,389,000
Other Costs and Expenses 28,985,000 23,636,000
____________ ____________
238,181,000 244,025,000
____________ ____________
Income before Taxes and
Cumulative Effect of
Accounting Change 21,116,000 21,114,000
Provision for U.S. and
Foreign Income Taxes 8,298,000 8,581,000
____________ ____________
Income before Cumulative Effect of
Accounting Change 12,818,000 12,533,000
Cumulative Effect of Accounting
Change(a) - (2,007,000)
____________ ____________
Net Income $12,818,000 $10,526,000
____________ ____________
____________ ____________
Weighted Average Number of Shares
Outstanding:
Basic 32,288,338 36,029,526
Diluted 32,288,338 36,062,769
Basic and Diluted Earnings per Share:
Income Before Cumulative Effect
of Accounting Change $0.40 $0.35
Cumulative Effect of Accounting
Change(a) - (0.06)
____________ ____________
Net Income $0.40 $0.29
____________ ____________
____________ ____________
(a) On November 20, 1997, The FASB Emerging Issues Task Force
issued a new ruling which requires the write-off of business process
re-engineering costs. Accordingly, $3,237,000 of such costs
capitalized as of August 31, 1997 were written off in the quarter
ending November 30, 1997. This write-off, net of income taxes,
amounted to $2,007,000 or $.06 per common share and was accounted for
as a change in accounting.
Condensed Balance Sheet
November 30, 1998 August 31, 1998
_________________ _______________
Assets
Current Assets $406,788,000 $395,485,000
Other Assets 24,043,000 18,252,000
Net Property, Plant and Equipment 152,194,000 148,183,000
____________ ____________
$583,025,000 $561,920,000
____________ ____________
____________ ____________
Liabilities and Stockholders' Equity
Current Liabilities $125,728,000 $107,185,000
Long-Term Debt 43,000,000 40,000,000
Deferred Credits and Other
Long-Term Liabilities, etc. 48,946,000 48,464,000
Stockholders' Equity 365,351,000 366,271,000
____________ ____________
$583,025,000 $561,920,000
____________ ____________
____________ ____________
Supplemental Information (in thousands of dollars)
Three Months Ended
Nov. 30, 1998 Nov. 30, 1997
_____________ _____________
Net Sales
Manufacturing $175,771 $172,846
Merchant 47,516 49,392
Distribution 35,359 41,970
_________ _________
$258,646 $264,208
_________ _________
_________ _________
Gross Profit
Manufacturing $37,589 $32,463
Merchant 6,857 6,185
Distribution 5,004 5,171
_________ _________
$49,450 $43,819
_________ _________
_________ _________
Certain items previously reported have been reclassified to
conform with the 1998 presentation.
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