A. Schulman reports results for 1996 fourth quarter and fiscal year.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. 21, 1996--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:
Sales for the 1996 fiscal year were $976.7 million, a decline of 5% from last year's record sales of $1,027.5 million. Net income was $42,177,000 or $1.12 per common share, off 21% from 1995 record earnings of $53,618,000 or $1.43 per share. Net income for the quarter ended August 31, 1996 was the highest for any fourth quarter in the history of A. Schulman. Earnings were $13,987,000 or $.37 per share, an increase of 16% over net income of $12,047,000 or $.32 per share for the same period last year. Sales of $239.1 million were slightly lower than last year's 1995 fourth quarter sales of $242.0 million. The Company said that fourth quarter profits advanced to record levels due to an 8% increase in European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. earnings and a significant improvement in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. net income. 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 up and 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. improved from last year's depressed fourth quarter level. "Profits for fiscal 1996 were lower as a result of a sharp drop in plastic 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 early in the year and a concerted effort by our customers to reduce their high level of inventories in the wake of declining prices," said Terry L. Haines Haines refers to: Persons named Haines
"The decline in profits bottomed out at the end of our second quarter. Since then, profits have improved sequentially through our fourth quarter when earnings surpassed last year's level," Haines said. "European net income for fiscal 1996 was down 11% or $4.5 million from last year's results. This decline was attributable primarily to lower resin prices and weak economic conditions, especially in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). ," Haines noted. "Sales 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. were off slightly for the year because of lower resin prices, even though tonnage was up 9%. However, earnings declined $7 million. Profit margins were less than last year because of less than planned utilization of new capacities and our customers' resolve to reduce inventories," he said. The translation effect of the stronger U.S. dollar reduced A. Schulman's sales by $7.1 million for the quarter and $3.6 million for the year. Net income was reduced by $410,000 or $.02 per share for the quarter and $217,000 or $.01 per share for the year. The Company reported that its total worldwide tonnage was up 14% for the quarter. European tonnage increased 6%, while North American volumes advanced 23% on solid growth in each business category. For the year, total tonnage grew 3% due to a 9% increase in North America, which was partially offset by a decline in A. Schulman's European merchant activities. Manufacturing tonnage was up 19% for the quarter and 8% for the year. Fourth quarter 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 85% in 1996 versus 73% last year. "The increases in tonnage and the significant improvement in capacity utilization were the major reasons for the better fourth quarter profit margins," Haines stated. "Profit margins were 16.8% compared with 14.6% in the same quarter last year. The major improvement was derived from manufacturing, where gross profit was up $8.2 million on higher margins. "For the year, profit margins were 15.4%, down from 16% in 1995. This decline was attributable to lower margins and profits in both manufacturing and merchant activities. The fall in resin prices early in fiscal 1996, along with a reduction in capacity utilization, were the principal reasons for the margin reductions. "Capital expenditures were $18.5 million in 1996, down from last year's all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal record of $58.5 million," Haines said. "The major expenditure in 1996 was the addition of a second manufacturing line for The Sunprene Company, our partnership with MKV MKV Mittelschüler Kartell-Verband MKV Matroska Video (file extension) MKV Management, Kommunikation und Verkauf (German: Management, Commmunication and Sales) MKV Milchkontingentierungsverordnung America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. Inc. This line, with a cost of $5 million, provides approximately 14 million pounds of additional capacity. "Currently, we are constructing a new manufacturing facility in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. , and investing $8.5 million for an additional line at our facility in 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. . These projects are scheduled for start-up Start-up The earliest stage of a new business venture. in fiscal 1997 and 1998, respectively. We will also replace a manufacturing line in our United Kingdom facility. These projects will add approximately 32 million pounds or 4% to our existing capacity. "We should resume a pattern of growth in fiscal 1997. 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. , our capacity additions provide a solid foundation for expansion of our business, and it appears that in the European economies, including Germany, there are some signs of recovery. In addition, our presence throughout the world provides broad capabilities for new opportunities," Haines commented. "It has been an extremely difficult period, with significant changes in resin pricing throughout the year. The future undoubtedly will be full of many challenges, but we continue to be enthusiastic about the worldwide prospects for A. Schulman." Based in Akron, A. Schulman is an 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 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. -0-
A. Schulman, Inc. and its Consolidated Subsidiaries
Financial Highlights
Three Months Ended
August 31, 1996 August 31, 1995
Net Sales $239,096,000 $242,045,000
Interest and Other Income 1,605,000 1,855,000
240,701,000 243,900,000
Cost of Sales 198,818,000 206,623,000
Other Costs and Expenses 17,974,000 16,411,000
216,792,000 223,034,000
Income before Taxes 23,909,000 20,866,000
Provision for U.S. and Foreign Income
Taxes 9,922,000 8,819,000
Net Income $13,987,000 $12,047,000
Net Income per Share of Common Stock $0.37 $0.32
Average Number of Shares of
Common Stock Outstanding 37,699,237 37,579,568
Year Ended
August 31, 1996 August 31, 1995
Net Sales $976,694,000 $1,027,458,000
Interest and Other Income 6,075,000 7,099,000
982,769,000 1,034,557,000
Cost of Sales 826,076,000 863,410,000
Other Costs and Expenses 85,721,000 81,335,000
911,797,000 944,745,000
Income before Taxes 70,972,000 89,812,000
Provision for U.S. and Foreign Income
Taxes 28,795,000 36,194,000
Net Income $42,177,000 $53,618,000
Net Income per Share of Common Stock $1.12 $1.43
Average Number of Shares of
Common Stock Outstanding 37,584,561 37,544,408
Consolidated Balance Sheet
August 31. 1996 August 31, 1995
Assets
Current Assets $466,803,000 $491,106,000
Other Assets 17,539,000 14,883,000
Net Property, Plant and Equipment 139,036,000 141,177,000
$623,378,000 $647,166,000
Liabilities and Stockholders' Equity
Current Liabilities $105,957,000 $128,066,000
Long-Term Debt 40,054,000 75,096,000
Deferred Credits and Other Long-Term
Liabilities, etc. 44,257,000 38,786,000
Stockholders' Equity 433,110,000 405,218,000
$623,378,000 $647,166,000
Supplemental Information (in thousands of dollars)
Three Months Ended
Aug. 31, 1996 Aug. 31, 1995
Net Sales
Manufacturing $148,875 $140,494
Merchant 47,832 54,066
Distribution 42,389 47,485
$239,096 $242,045
Gross Profit
Manufacturing $ 29,972 $ 21,820
Merchant 4,147 7,194
Distribution 6,159 6,408
$ 40,278 $ 35,422
Year Ended
Aug. 31, 1996 Aug. 31, 1995
Net Sales
Manufacturing $598,297 $593,478
Merchant 201,795 230,330
Distribution 176,602 203,650
$976,694 $1,027,458
Gross Profit
Manufacturing $ 102,557 $ 106,690
Merchant 22,331 31,929
Distribution 25,730 25,430
$150,618 $164,049
CONTACT: A. Schulman Inc., Akron Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. A. Stefanko, 330/666-3751 |
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