US A Schulman Q1 net income rises 48% on higher sales

05 January 2012 22:26  [Source: ICIS news]

HOUSTON (ICIS)--US plastics compounder A Schulman reported on Thursday a 48% year on year increase in net income for the fiscal first quarter of 2012, mostly because of higher sales.

Net income increased to $13.6m (€10.5m), compared with $9.2m in the same period of 2010.

A Schulman said selling, general and administrative (SG&A) expenses decreased by $5.5m to $47.4m, down 10.4% from $52.9m in the same period a year ago.

Net sales for the first quarter also rose to $517.3m from $495.4m in the first quarter of 2010, an increase of 4.4%.

The increase was the result of increased average selling price per pound and a favourable foreign currency translation, the company said.

“The fiscal 2012 second quarter is expected to be challenged by declining demand in Europe,” A Schulman said.

“Offsetting these expected volume declines, the [Europe, Middle East and Africa] and Americas segments will benefit from the restructuring efforts that are ongoing and operating efficiencies driven by acquisition integration activities. The company expects to continue to focus on global SG&A and plant cost controls,” the company added.

A Schulman stock ended the day up 1.2% at $22.15.


By: Bobbie Clark
+1 713 525 2653



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