A. Schulman Reports Record Earnings for Fiscal Fourth Quarter.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)--Oct. 20, 1997--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:
Earnings of $15,293,000 were 9% higher than the $13,987,000 reported for the 1996 fourth quarter. Net income per share was $.42, an increase of 14% over per share earnings of $.37 for the same quarter last year. Sales were $238.2 million, off slightly from sales of $239.1 million in the fourth quarter last year. The slight decline was due to a $22.1 million adverse translation effect of the stronger U.S. dollar. This more than offset 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. gains of 7.5%, the Company said. Net income of $50,744,000 for the fiscal year ended August 31, 1997 was up 20% over earnings of $42,177,000 in fiscal 1996. Earnings per share were $1.37, a gain of 22% over per share earnings of $1.12 last year. Earnings for fiscal 1997 were the second best in the history of A. Schulman. Worldwide sales were $996.4 million, up 2% from 1996 sales of $976.7 million. A $57.5 million adverse translation effect from the stronger U.S. dollar offset tonnage gains of 8.8%, the Company noted. "Fourth quarter profits reached record levels because of the strength of our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations and higher earnings 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. ," said Terry L. Haines Haines refers to: Persons named Haines
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. were 16.8% for the current and prior year's quarter, but selling, general and administrative expenses were down due to the effects of translation and a reduction in bad debts." Profits from the Company's European operations were up $4.6 million or 13% for fiscal 1997. The translation effect of the stronger U.S. dollar had a major impact on European net income. Earnings were reduced by $1,754,000 or $.05 per share for the quarter and $3,775,000 or $.10 per share for the 1997 year. Overall, tonnage was up 10% with especially strong results from A. Schulman's manufacturing business, where volume was up 14% over last year. European profit margins for the year were up on utilization rates close to capacity. "Profits in North America were up $4 million or 61% for the year," Haines said. "Volume increased 7% and margins improved moderately, primarily due to better profits in our 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. ." The Company reported 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. was 84%, up slightly from last year's 83%. Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). was near 100% capacity levels for all
of fiscal 1997, while North America operated at 75% of capacity, about
the same as last year.
A. Schulman's capital expenditures for 1997 were $27.2 million, an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal record. The major capital expenditures were $5.4 million for a new Indonesian facility and acquisition of Specialty Compounding operations from Laurel Laurel, cities, United States Laurel. 1 Town (1990 pop. 19,438), Prince Georges co., central Md., about halfway between Washington, D.C., and Baltimore; patented in the late 1600s, inc. 1870. Industries in November November: see month. 1996. "We are in the final stages of completing our facility in Indonesia which is scheduled for start-up Start-up The earliest stage of a new business venture. in November 1997," Haines stated. This facility, with one production line, is already virtually sold out. "We are replacing an older line in our United Kingdom plant. This new line will cost $4 million and increase capacity by approximately 8 million pounds. Production is scheduled to start in January 1998. We are also adding a second production line to our Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum facility. This line, with a cost of $5.8 million, should go on-stream in March 1998," Haines announced. On August 1, 1997, A. Schulman acquired the assets of a distributor and merchant in Warsaw Warsaw (wôr`sô), Pol. Warszawa, city (1993 est. pop. 1,655,700), capital of Poland and of Mazowieckie prov., central Poland, on both banks of the Vistula River. , Poland. This business includes a customer list and small sales force which will provide an expanded market for the Company's wide range of products. "Our Board has also approved an increased investment for a new line in our Givet, France facility which was previously authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: in April 1997. The cost of this line will be increased from $7 million to $11 million and will double capacity from 30 million to 60 million pounds annually," Haines stated. "It is scheduled for completion in early January 1999 and will enable us to provide additional capacity to meet the rapidly growing demand for our products. It will also enable us to produce specialty products for the European markets at a cost that will be extremely competitive. "In April 1997, we announced a 3 million share stock repurchase plan stock repurchase plan 1. See buyback. 2. See self-tender. . During the 1997 fiscal year, we repurchased 1,610,000 shares for $32.2 million. We plan to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. , subject to market conditions during the next twelve months, the balance of 1,390,000 shares under the existing program. These purchases will increase earnings per share and enhance shareholder value," Haines said. "It's extremely satisfying to finish our fiscal year with a record fourth quarter. As we enter our 1998 fiscal year, we see strong demand for our products throughout our worldwide operations. Our European operations have solid order levels and continue to operate at or near capacity levels. Pricing is firm, and we are seeing an overall improvement in the European economies. The strength of the U.S. dollar will continue to have an adverse effect on our European operations. Nevertheless, we anticipate improved results over the year just ended. "In North America, sales and margins have recently improved. We have a good level of orders, and demand from the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. is stable. We see sound overall economic conditions in the months ahead. "We are excited about the prospects for A. Schulman in our 1998 fiscal year and anticipate continuing earnings growth in the years ahead," Haines concluded. Based 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. . -0-
A. Schulman, Inc. and Its Consolidated Subsidiaries
Financial Highlights
Three Months Ended
August 31, 1997 August 31, 1996
Net Sales $238,212,000 $239,096,000
Interest and Other Income 1,018,000 1,605,000
239,230,000 240,701,000
Cost of Sales 198,193,000 198,818,000
Other Costs and Expenses 15,093,000 17,974,000
213,286,000 216,792,000
Income before Taxes 25,944,000 23,909,000
Provision for U.S. and Foreign
Income Taxes 10,651,000 9,922,000
Net Income $ 15,293,000 $ 13,987,000
Net Income per Share of Common Stock $0.42 $0.37
Average Number of Shares of Common
Stock Outstanding 36,295,818 37,699,237
Year Ended
August 31, 1997 August 31, 1996
Net Sales $ 996,376,000 $976,694,000
Interest and Other Income 4,998,000 6,075,000
1,001,374,000 982,769,000
Cost of Sales 833,345,000 826,076,000
Other Costs and Expenses 81,747,000 85,721,000
915,092,000 911,797,000
Income before Taxes 86,282,000 70,972,000
Provision for U.S. and Foreign
Income Taxes 35,538,000 28,795,000
Net Income $ 50,744,000 $ 42,177,000
Net Income per Share of Common Stock $1.37 $1.12
Average Number of Shares of Common
Stock Outstanding 37,125,345 37,584,561
Condensed Balance Sheet
August 31, 1997 August 31, 1996
Assets
Current Assets $403,714,000 $466,803,000
Other Assets 19,836,000 17,539,000
Net Property, Plant and Equipment 139,395,000 139,036,000
$562,945,000 $623,378,000
Liabilities and Stockholders' Equity
Current Liabilities $111,741,000 $105,957,000
Long-Term Debt 12,009,000 40,054,000
Deferred Credits and Other Long-Term
Liabilities, etc. 45,794,000 44,257,000
Stockholders' Equity 393,401,000 433,110,000
$562,945,000 $623,378,000
Supplemental Information (in thousands of dollars)
Three Months Ended
August 31, 1997 August 31, 1996
Net Sales
Manufacturing $140,273 $148,875
Merchant 60,316 47,832
Distribution 37,623 42,389
$238,212 $239,096
Gross Profit
Manufacturing $ 28,929 $ 29,972
Merchant 6,477 4,147
Distribution 4,613 6,159
$ 40,019 $ 40,278
Year Ended
August 31, 1997 August 31, 1996
Net Sales
Manufacturing $607,922 $598,297
Merchant 229,350 201,795
Distribution 159,104 176,602
$996,376 $976,694
Gross Profit
Manufacturing $116,725 $102,557
Merchant 26,096 22,331
Distribution 20,210 25,730
$163,031 $150,618
CONTACT: A. Schulman Robert A. Stefanko, 330/666-3751 |
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