04 April 2008 16:36 [Source: ICIS news]
HOUSTON (ICIS news)--US plastics compounder A Schulman reported on Friday a second-quarter net loss of $3.8m (€2.4m) due mainly to a $11.7m hit in restructuring expenses.
Had Schulman not incurred so much in expenses, the company said its second-quarter income would have been $7.9m. For the same time last year, Schulman reported a net income of $1.6m.
Recently, the company has replaced its CEO, shut down plants and sold others, the result of a proxy fight that Schulman ultimately lost.
Investment fund Ramius Capital started the fight, citing what it called the company's weak performance.
Schulman's second quarter is the first full quarter under the leadership of Joseph Gingo, the company's new CEO.
The company reported net sales of $479.8m, up from $412.8m reported for the same time last year. Costs of sales were $422.8m, up from $365.3m.
Second-quarter gross profit was $57m, up from $47.4m reported for the same time last year.
By geographic area, Europe reported a gross profit of $50.1m for the second quarter, compared with $38.3m reported for the same time last year.
North America reported a gross profit of $6.9m, compared with $9.1 reported for the same time last year.
"In North America, our non-automotive business performed well," according to a statement by Gingo. "This helped offset the impact of the continued weakness in the North American automotive market."
However, Gingo said the company is beginning to see signs of weakness in the non-automotive segment in North America.
Shares of Schulman were trading up 5.03% at $22.14 in early trading.
($1 = €0.64)
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