US compounder A Schulman more than doubles fiscal Q4 net income

25 October 2010 13:53  [Source: ICIS news]

LONDON (ICIS)--A Schulman more than doubled its fiscal fourth-quarter net income to $11.7m (€8.3m) year on year as it strengthened its position in key global markets, the US compounder said on Monday.

Net sales for the period were up by 49% year on year to $476.2m, A Schulman said, with sales volumes increasing by 60%.

The net income figure excludes certain one-time charges and acquisition-related items, while the sales figures include contributions from A Schulman's acquisition of specialty resins maker ICO.

“We are pleased with our strong earnings improvement for both the fourth quarter and the full year of fiscal 2010,” said CEO Joseph Gingo. “We saw the restoration of profitability in our legacy US operations in fiscal 2010 as well as the strengthening of our position in key global markets.”

Earlier this month, A Schulman also announced it had agreed to buy Mash Compostos Plasticos, a masterbatch additive producer and engineered plastics compounder based in Sao Paulo, Brazil.

“Along with ICO, this marks our second acquisition in the past six months in Brazil that will help us expand our presence in this growing market,” said Gingo.

Net income for the fiscal full year, on the same basis as the quarterly figure, was $48.2m compared with $16.4m in 2009.

A Schulman said it expected earnings for 2011 to reach record levels of between $57m and $62m.

($1 = €0.71)

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By: Graeme Paterson
+44 20 8652 3214

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