03 April 2009 05:26 [Source: ICIS news]
SINGAPORE (ICIS news)--US plastic resins and compound producer A Schulman reported on Friday its net loss nearly tripled to $10.5m (€7.77m) in the second quarter ending February 2009 from $3.8m loss a year earlier as demand slumped.
The losses for the period included about $3.8m of charges, some related to its ongoing restructuring activities, the company said.
Net sales for the three-month period plunged 43.2% year-on-year to $272.7m.
"The demand slowdown we experienced in November 2008 continued into December and January," said A Schulman chairman Joseph Gingo, who concurrently holds the positions of president and CEO of the company.
"Although we did make an operating and net profit in February 2009, it was insufficient to overcome the prior two months' losses,” he said.
For the first six months to February of its current fiscal year, A Schulman swung into a net loss of $2.3m from a net profit of $6.2m in the same period a year earlier.
"The economic environment we are now experiencing is definitely the most severe I have seen over my 40 plus years in business," said Gingo.
"Although demand appears to have now stabilized, it is still far below the levels of a year ago. The actions we have taken will help us maintain a healthy liquidity position as we anticipate a slow but steady climb to appropriate levels of profitability," he added.
The substantial weakening of demand in late 2008 amid the economic downturn prompted A Schulman to cut its workforce and reduce operating rates.
“If the economy continues to deteriorate, we will use our cash position to support further restructuring as required to achieve profitable levels of performance,” said Gingo.
($1 = €0.74)
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