US A Schulman trims Q2 loss to $6.8m as sales jump 21.4%

31 March 2010 23:50  [Source: ICIS news]

HOUSTON (ICIS news)--A Schulman posted a 2010 fiscal second-quarter net loss of $6.81m (€5.11m), an improvement from a $10.82m loss in the year-earlier period as sales increased 21.4%, the US plastic compounds and resins producer said on Wednesday.

Sales for the quarter that ended on 28 February were $331m, up from $272.6m in the 2009 second quarter on increased sales of higher-priced products and positive translation effects from foreign currency, particularly the euro, A Schulman said.

Increased demand was particularly present in Asia and Europe sales, the company said. Asian sales rose 60.3% year over year, while European sales grew by 24.5%.

By segment, A Schulman's colour and additive concentrates and polyolefins businesses were the most successful, with sales growing by 22.4% and 18.1%, respectively.

The increased demand was countered by rising costs, however, with overall costs of sales rising 14.9% year over year and selling, general and administrative expenses (SG&A) increasing 30.2%.

The $331m in second-quarter sales was down from $362.9m in the 2010 fiscal first quarter.

Looking forward, "We are optimistic that markets will gradually improve in the remaining half of fiscal 2010, and we expect North America's performance to continue to be significantly favourable compared with last year," said A Schulman chief executive Joseph Gingo. "While our performance in Europe is steadily improving, it is not likely to approach 2008 levels until market volumes recover significantly.”

($1 = €0.75)

Additional reporting by Brian Ford

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