A. Schulman reports third quarter results.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, 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:
Net income for the third quarter was $12,104,000 or $.32 per common share, an improvement of 60% over second quarter 1996 earnings of $.20 per share. However, earnings were off 21% from last year's record third quarter earnings of $15,239,000 or $.41 per share. Sales for the quarter of $254.4 million were off 11% from 1995 third quarter sales of $284.5 million. For the nine month period ended May 31, 1996, A. Schulman had net income of $28,190,000 or $.75 per share compared with last year's record earnings of $41,571,000 or $1.11 per share. Sales were $737.6 million compared with sales of $785.4 million in the same period a year ago. The Company said the major reason for the sequential improvement in earnings was better profit margins, especially 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. . "Earnings in our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations were off $2.7 million or 24% from last year's third quarter," stated Terry L. Haines Haines refers to: Persons named Haines
adj. Lacking brightness, luster, or vitality; dull. See Synonyms at dull. Adj. 1. lackluster - lacking brilliance or vitality; "a dull lackluster life"; "a lusterless performance" general economic conditions. 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 equal to last year's record levels and manufacturing tonnage was up 4% for the quarter. Plant utilization was near capacity levels," Haines said. "Although tonnage was strong, sales were off 15% for the quarter due to lower 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 and the translation effect of foreign currencies." The translation effect from the stronger U.S. dollar reduced A. Schulman's third quarter sales and net income by $9.9 million and $478,000 or $.01 per share, respectively. For the nine month period ended May 31, 1996, the translation effect increased sales by $3.6 million and net income by $193,000 or $.01 per share. "Profits in our 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 significantly from the second quarter," Haines noted. "The major reason was higher 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. which improved by 27% from the second quarter of 1996. Most of this improvement was derived from 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. which operated at close to 80% of capacity compared with 69% of capacity during our preceding quarter. "Third quarter earnings in North America were off 11% from the same period last year. Margins were slightly higher, but income was down primarily due to lower selling prices," Haines said. Gross profit margins were 16% for the current and same quarter last year, the Company reported. Margins in the Company's manufacturing operations declined to 17.5% from last year's 18.6%, but the reduction was offset by combined merchant and distribution activities. Worldwide tonnage was up 2.8% for the quarter and up slightly for the nine month period. For the quarter, tonnage in North America was up 5.6% over last year's levels. European tonnage was even compared with last year. Tonnage for the quarter was up in each of A. Schulman's business activities by 2 to 3%. Interest expense for the quarter declined from $1.7 million to $1 million due to a lower level of borrowings. The Company said it expects this trend to continue in future quarters. "During the quarter, we completed the acquisition of a Belgian Belgian having some relationship to Belgium. Belgian barge dog see schipperke. Belgian black pied cattle black, Belgian dairy cattle. Belgian blue dual-purpose cattle; blue, white or blue roan. distribution business which will provide us with annual sales of approximately $5 million," Haines announced. "We also commenced operation, in May 1996, of a second manufacturing line for The Sunprene Company, our joint venture 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., an affiliate of Mitsubishi Mitsubishi: see zaibatsu. Chemical MKV Company. This line in Bellevue, Ohio Bellevue is a city in Erie, Huron, Seneca and Sandusky counties in the U.S. state of Ohio. The population was 8,193 at the 2000 census. It is part of the Sandusky, Ohio metropolitan statistical area. has an annual capacity of approximately 14 million pounds and will provide us with the additional capacity required for this growing business. "We will be adding a new manufacturing line to our Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum facility which opened in September 1995. Orders in Mexico continue to increase, and we anticipate the need for additional capacity in the next 18 months." Haines said. "The new line, with an annual capacity of about 14 million pounds, will cost approximately $6 million and is scheduled for start-up Start-up The earliest stage of a new business venture. early in 1998. It will produce materials for the growing packaging markets in Mexico and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . "We also will replace an existing manufacturing line at our United Kingdom facility. The new line, with a cost of $4 million, will increase our capacity by approximately 8 million pounds. It will enhance both our production capabilities and manufacturing efficiencies. The new line is scheduled for start-up in the fall of 1997. Looking ahead, Haines said, "We have a firm order level in Europe and anticipate a good quarter through the traditional European summer holiday season, although earnings in Germany will be off from last year's level, and the effect of the stronger U.S. dollar will have some small adverse effect on earnings. "Volume in North America was good in June. We have a solid level of orders and pricing 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. should be firm throughout the fourth quarter. "We anticipate good results in our final quarter of 1996," Haines concluded. A. Schulman is an international supplier of high-performance plastic compounds and resins. -0-
A. Schulman, Inc. and its Consolidated Subsidiaries
Financial Highlights
Three Months Ended
May 31, 1996 May 31, 1995
Net Sales $254,432,000 $284,535,000
Interest and Other Income 1,300,000 1,956,000
255,732,000 286,491,000
Cost of Sales 213,690,000 238,871,000
Other Costs and Expenses 21,965,000 22,146,000
235,655,000 261,017,000
Income before Taxes 20,077,000 25,474,000 Provision for U.S. and Foreign Income Taxes 7,973,000 10,235,000 Net Income $12,104,000 $15,239,000 Net Income per Share of Common Stock $0.32 $0.41 Average Number of Shares of Common Stock Outstanding 37,546,186 37,563,510
Nine Months Ended
May 31, 1996 May 31, 1995
Net Sales $737,598,000 $785,413,000
Interest and Other Income 4,470,000 5,244,000
742,068,000 790,657,000
Cost of Sales 627,258,000 656,787,000
Other Costs and Expenses 67,747,000 64,924,000
695,005,000 721,711,000
Income before Taxes 47,063,000 68,946,000 Provision for U.S. and Foreign Income Taxes 18,873,000 27,375,000 Net Income $28,190,000 $41,571,000 Net Income per Share of Common Stock $0.75 $1.11 Average Number of Shares of Common Stock Outstanding 37,546,335 37,532,687 Consolidated Balance Sheet
May 31, 1996 August 31, 1995
Assets
Current Assets $468,139,000 $491,106,000
Other Assets 17,123,000 14,883,000
Net Property, Plant and Equipment 138,954,000 141,177,000
$624,216,000 $647,166,000
Liabilities and Stockholders' Equity
Current Liabilities $117,007,000 $128,066,000
Long-Term Debt 54,064,000 75,096,000
Deferred Credits and Other Long-Term
Liabilities, etc. 41,054,000 38,786,000
Stockholders' Equity 412,091,000 405,218,000
$624,216,000 $647,166,000
Supplemental Information (in thousands of dollars)
Three Months Ended Nine Months Ended
May 31, 1996 May 31, 1995 May 31, 1996 May 31, 1995
Net Sales
Manufacturing $157,983 $164,890 $449,422 $452,984
Merchant 54,409 64,856 153,963 176,264
Distribution 42,040 54,789 134,213 156,165
$254,432 $284,535 $737,598 $785,413
Gross Profit
Manufacturing $ 27,713 $ 30,703 $ 72,585 $ 84,869
Merchant 6,793 8,234 18,184 24,735
Distribution 6,236 6,727 19,571 19,022
$ 40,742 $ 45,664 $110,340 $128,626
CONTACT: A. Schulman, Inc., Akron Robert A. Stefanko, 330/666-3751 |
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