A. Schulman Reports Third-Quarter 2000 Results.Business Editors 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 11, 2000 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:
Prices and changes in mix increased third-quarter sales by 17.2%, but 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 flat and the translation effect of currencies, mainly the weak Euro, reduced sales by 7.4%. For the nine months ended May 31, 2000, net income was $31,028,000 or $1.02 per common share compared with $32,755,000 or $1.03 per share for the comparable nine months last year. Net income includes $2,535,000 or $.07 per share of income in the first half of this year from demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. of an insurance company and the settlement of an insurance claim resulting from equipment problems at a North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. facility. Sales for the nine months were $797 million or 7.1% higher than sales of $744.3 million for the comparable period last year. Tonnage was up 5.3% for the nine months. Higher prices and changes in product mix increased sales by 9%. However, the adverse effect from the translation of foreign currencies reduced these gains by $53.9 million or 7.2%. 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 for all reported periods. The translation effect of currencies, primarily the weak Euro, reduced net income by $1,021,000 or $.03 per share for the quarter and $2,864,000 or $.09 per share for the nine-month period. "Our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations have a strong level of orders extending into early fall," 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. are lower due to continuing competitive price pressures. There has been some recent strengthening of the Euro that should reduce a portion of the adverse effect from currency translation." Sales in the European operations were up approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 14% for the third quarter. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was up $491,000, even though the translation effect of weaker currencies reduced profits by approximately $1 million. European volume was up 2.6% for the quarter, but gross profit margins declined 200 basis points due to higher 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 and competitive price pressures. 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. in 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 91% for
the quarter and 87% for the nine-month period.
A. Schulman is in the final stage of acquiring a manufacturing facility in Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. with an annual capacity of approximately 25 million pounds. This transaction is expected to be completed in July July: see month. 2000. "Italy is one of the largest plastics markets in Europe and this facility will enhance our growth opportunities for value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: products in this most important area," said Haines. North American sales were $116.8 million for the quarter, an increase of 5.2% over the same quarter last year. Volume was down 3% from the year-ago quarter. Capacity utilization for the quarter improved to 88% compared with 83% last year, but gross profit margins declined to 13% from 16.5% due to the higher 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. and continuing competitive price pressures. North American third quarter operating income was $2.4 million compared with $4.6 million in the same quarter last year. "We have had success in increasing our sales prices 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. and were able to see positive impacts on margins near the end of our third quarter," Haines said. "We believe prices of resins will stabilize stabilize See peg. by early fall and anticipate better margins in the months ahead. Our order level in North America is reasonably good, but we have noted some recent softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. due to traditional seasonal slowing in automotive business during the summer months. Over the last few quarters, we have pared North American capacity. These reductions relate to products where margins are below our objectives and equipment that is no longer adequate for today's requirements." Haines added, "We anticipate good earnings for the final quarter of this fiscal year, but it will be difficult to match the strong results recorded in last year's fourth quarter." During the quarter, the Company successfully renegotiated union contracts at two plants in North America. This will enable A. Schulman to provide uninterrupted production for customers served by these facilities. A. Schulman has continued to be a buyer of its common stock. During the nine months ended May 31, 2000, the Company repurchased 1,354,933 shares for approximately $18.9 million or an average price of $13.97 per share. During the third fiscal quarter, the Company repurchased 364,100 shares at an average price of $12.60 per share. A. Schulman has 2.3 million shares remaining under a 6 million-share authorization The right or permission to use a system resource; the process of granting access. See access control. approved by its Board in August 1998. As of May 31, 2000, there were 29,775,222 shares outstanding compared with 31,194,505 shares outstanding at the same time 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 Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" 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, Europe, Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. and the Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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
A. Schulman, Inc. and its Consolidated Subsidiaries
Financial Highlights
Three Months Ended
May 31, 2000 May 31, 1999
------------ ------------
Net Sales $275,265,000 $250,450,000
Interest and Other Income 915,000 501,000
------------ ------------
276,180,000 250,951,000
------------ ------------
Cost of Sales 232,679,000 205,186,000
Other Costs and Expenses 27,611,000 27,490,000
------------ ------------
260,290,000 232,676,000
------------ ------------
Income before Taxes 15,890,000 18,275,000
Provision for U.S. and Foreign
Income Taxes 6,538,000 6,978,000
------------ ------------
Net Income $9,352,000 $11,297,000
Weighted Average Number of
Shares Outstanding:
Basic 29,914,622 31,285,838
Diluted 29,914,622 31,285,838
Basic and Diluted Earnings per Share $0.32 $0.36
------------ ------------
Nine Months Ended
May 31, 2000 May 31, 1999
------------ ------------
Net Sales $797,038,000 $744,294,000
Interest and Other Income 5,943,000 2,263,000
------------ ------------
802,981,000 746,557,000
------------ ------------
Cost of Sales 666,644,000 610,088,000
Other Costs and Expenses 85,268,000 82,768,000
------------ ------------
751,912,000 692,856,000
------------ ------------
Income before Taxes 51,069,000 53,701,000
Provision for U.S. and Foreign
Income Taxes 20,041,000 20,946,000
------------ ------------
Net Income $31,028,000 $32,755,000
------------ ------------
Weighted Average Number of
Shares Outstanding:
Basic 30,488,992 31,852,005
Diluted 30,488,992 31,859,917
Basic and Diluted Earnings per Share $1.02 $1.03
------------ ------------
Condensed Balance Sheet
May 31, 2000 August 31, 1999
------------ ------------
Assets
Current Assets $429,106,000 $408,096,000
Other Assets 19,474,000 23,088,000
Net Property, Plant and Equipment 153,762,000 160,343,000
------------ ------------
$602,342,000 $591,527,000
------------ ------------
Liabilities and Stockholders' Equity
Current Liabilities $133,796,000 $117,816,000
Long-Term Debt 81,730,000 65,000,000
Deferred Credits and Other Long-Term
Liabilities, etc. 53,094,000 52,465,000
Stockholders' Equity 333,722,000 356,246,000
------------ ------------
$602,342,000 $591,527,000
------------ ------------
Supplemental Information
North America Europe
------------- ------------
Three months ended May 31, 2000
Sales to unaffiliated customers $116,806,000 $158,459,000
------------- ------------
Gross profit $15,195,000 $27,391,000
------------- ------------
Operating income $2,404,000 $14,732,000
Interest expense, net - -
------------- ------------
Income before taxes $2,404,000 $14,732,000
------------- ------------
Three months ended May 31, 1999
Sales to unaffiliated customers $110,996,000 $139,454,000
------------- ------------
Gross profit $18,322,000 $26,942,000
------------- ------------
Operating income $4,606,000 $14,241,000
Interest expense, net - -
------------- ------------
Income before taxes $4,606,000 $14,241,000
------------- ------------
Other Consolidated
------------- ------------
Three months ended May 31, 2000
Sales to unaffiliated customers - $275,265,000
------------- ------------
Gross profit - $42,586,000
------------- ------------
Operating income - $17,136,000
Interest expense, net ($1,246,000) ($1,246,000)
------------- ------------
Income before taxes ($1,246,000) $15,890,000
------------- ------------
Three months ended May 31, 1999
Sales to unaffiliated customers - $250,450,000
------------- ------------
Gross profit - $45,264,000
------------- ------------
Operating income - $18,847,000
Interest expense, net ($572,000) ($572,000)
------------- ------------
Income before taxes ($572,000) $18,275,000
------------- ------------
North America Europe
------------- ------------
Nine months ended May 31, 2000
Sales to unaffiliated customers $338,415,000 $458,623,000
------------- ------------
Gross profit $46,155,000 $84,239,000
------------- ------------
Operating income $10,857,000 (1)(2) $43,692,000
Interest expense, net - -
------------- ------------
Income before taxes $10,857,000 $43,692,000
------------- ------------
Nine months ended May 31, 1999
Sales to unaffiliated customers $318,193,000 $426,101,000
------------- ------------
Gross profit $53,375,000 $80,831,000
------------- ------------
Operating income $14,763,000 $40,115,000
Interest expense, net - -
------------- ------------
Income before taxes $14,763,000 $40,115,000
------------- ------------
Other Consolidated
------------- ------------
Nine months ended May 31, 2000
Sales to unaffiliated customers - $797,038,000
------------- ------------
Gross profit - $130,394,000
------------- ------------
Operating income - $54,549,000
Interest expense, net ($3,480,000) ($3,480,000)
------------- ------------
Income before taxes ($3,480,000) $51,069,000
------------- ------------
Nine months ended May 31, 1999
Sales to unaffiliated customers - $744,294,000
------------- ------------
Gross profit - $134,206,000
------------- ------------
Operating income - $54,878,000
Interest expense, net ($1,177,000) ($1,177,000)
------------- ------------
Income before taxes ($1,177,000) $53,701,000
------------- ------------
(1) Includes income of $2,689,000 relating to consideration received
due to demutualization of insurance carrier in North America.
(2) Includes income of $1,211,000 from settlement of insurance claim
resulting from equipment problems at North American facility.
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