28 June 2002 15:07 [Source: ICIS news]
HOUSTON (CNI)--Resins manufacturer and distributor A Schulman said Friday its fiscal third quarter earnings/share (eps) will be 20% higher than current analysts' estimates of 30 cent/share, citing higher margins and volumes worldwide.
The company also said its expectations for its fiscal fourth quarter eps will be at the high end of current analysts' estimates or some 27 cent/share.
Akron, Ohio-based A Schulman noted that its eps estimates for the fiscal third quarter ended 31 May include a 4 cent/share one-time tax benefit resulting from a March 2002 change in tax law that extended the period for loss carry-backs in the US from two to five years.
According to the company's revised expectations, A Schulman could report eps as high as 36 cents when its formal third quarter results are announced on 11 July. That would represent a 63% improvement over the firm's third quarter 2001 eps of 22 cents.
The company said in a statement: "The primary reasons for the improved third quarter earnings outlook include higher profit margins, strong tonnage worldwide, low customer inventory levels and possible pre-buy activities due to increases in the prices of plastic resins."
Although the statement cautions that "it is early in the quarter," A Schulman said it anticipates its fiscal fourth quarter, which ends 31 August, should be "at the high end of the current First Call estimate range of 21-27 cent/share." In its fiscal fourth quarter last year the firm reported eps of 19 cents.
A Schulman has some 2300 employees at 13 manufacturing sites in North America, Europe, Mexico and the Asia-Pacific region. It had fiscal 2001 sales of $975m (Euro985m).
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