A. Schulman – SHLM – Remain committed to developing high-value-added products

A. Schulman, Inc. (Nasdaq: SHLM) announced earnings for the fiscal 2012 third quarter ended May 31, 2012.  The Company reported net income for the third quarter of $17.0 million, or $0.57 per diluted share, compared with net income of $18.8 million, or $0.60 per diluted share, for the comparable period last year.  The translation effect of foreign currencies negatively impacted net income for the quarter by $0.8 million.

• Net income was $17.0 million, or $0.57 per diluted share, for the quarter compared with net income of $18.8 million, or $0.60 per diluted share, in last year’s third quarter; excluding certain items, net income for the quarter was $20.4 million, or $0.69 per diluted share, compared with $20.3 million, or $0.65 per diluted share, for the prior-year period
• Net income year-to-date was $39.7 million, or $1.34 per diluted share, compared with $35.1 million, or $1.12 per diluted share, for the same period last year; excluding certain items, net income year-to-date was $46.9 million, or $1.59 per diluted share, compared with $43.0 million, or $1.37 per diluted share, for the same period last year
• The Company’s Americas and Asia Pacific regions outperformed last year’s segment operating income by 61% and 72% respectively for the quarter
• Full-year fiscal 2012 net income, on a non-GAAP basis, expected to be in the range of $2.03 to $2.07 per diluted share

The fiscal 2012 third-quarter net income per diluted share of $0.57 included certain after-tax charges of $3.4 million, or $0.12 per diluted share, primarily related to non-cash asset impairment charges and costs associated with restructuring initiatives.  Excluding these items, net income for the fiscal 2012 third quarter was $20.4 million, or $0.69 per diluted share, compared with $20.3 million, or $0.65 per diluted share, for the prior-year period. Last year’s third quarter included certain after-tax charges of $1.5 million, or $0.05 per diluted share, primarily related to restructuring initiatives.

Net sales for the fiscal 2012 third quarter were $569.1 million compared with $611.1 million for the same period last year. Net sales declined primarily due to a $23.5 million negative impact of foreign currency translation and a 7% decrease in volume.

“Overcoming the economic and political headwinds in today’s environment is a challenging task, and I am extremely proud of the efforts of our entire team in putting up some very strong numbers,” said Joseph M. Gingo, Chairman, President and Chief Executive Officer.  “As expected, our Americas and Asia Pacific segments are significantly outpacing prior-year results while our EMEA segment, including the successful integration of our Elian acquisition, is working aggressively to offset the extremely difficult market conditions.  We continue to focus on what’s within our control and we remain committed to developing high-value-added products and implementing cost-control initiatives to improve performance.”

About A. Schulman, Inc. – SHLM

A. Schulman, Inc. (SHLM) is a leading international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio. SHLM ‘s customers span a wide range of markets such as packaging, consumer products, industrial and automotive, among others.  SHLM employs about 3,100 people and has 35 manufacturing facilities globally.  A. Schulman reported net sales of $2.2 billion for the fiscal year ended August 31, 2011.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.