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A. Schulman Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: January 3, 2013 04:12PM
A. Schulman Inc. (SHLM) filed Quarterly Report for the period ended 2012-11-30. A Schulman, Inc. has a market cap of $847.8 million; its shares were traded at around $28.92 with a P/E ratio of 12.9 and P/S ratio of 0.4. The dividend yield of A Schulman, Inc. stocks is 2.9%. A Schulman, Inc. had an annual average earning growth of 4.4% over the past 10 years.
Highlight of Business Operations:EMEA net sales for the three months ended November 30, 2012 were $351.5 million, relatively consistent with the prior-year period. Excluding the negative impact of foreign currency translation of $16.5 million, net sales increased $15.1 million which includes $9.6 million in incremental net sales from the Elian acquisition. Volume increased 1.5%, which included 2.9 million of incremental pounds sold from Elian. Excluding foreign currency translation, price per pound increased 2.7% to $1.266 per pound compared with the prior-year period primarily due to the custom performance color and distribution services product families.
Net sales for the Americas for the three months ended November 30, 2012 were $149.6 million, an increase of $21.6 million or 16.9% compared with the prior-year period, as all product families realized increased volumes. The Americas experienced an increase in price per pound in the custom performance color, masterbatch solutions and specialty powders product families. Incremental net sales from the ECM Plastics, Inc. acquisition were $8.7 million during the first quarter of fiscal 2013. Foreign currency translation negatively impacted net sales by $0.9 million.
Operating income for the Americas for the three months ended November 30, 2012 was $7.8 million compared with $6.1 million last year. Operating income increased primarily due to the increase in gross profit as noted above and a $0.6 million decrease in selling, general and administrative expenses. The decline in selling, general and administrative expenses was primarily due to successful restructuring initiatives and cost control efforts. Operating income per pound increased 14.0% to $0.049 per pound primarily related to the engineered plastics product family.
APAC operating income for the three months ended November 30, 2012 was $3.1 million compared with $2.5 million last year. The increase in profitability was principally due to the increase in gross profit and partially offset by a slight increase of $0.3 million in selling, general and administrative expenses. Operating income per pound increased 17.4% to $0.101 primarily due to the aforementioned focus on products with higher technical requirements.
Working capital, excluding cash, was $240.6 million as of November 30, 2012, an increase of $23.6 million from August 31, 2012. The primary reasons for the increase in working capital from August 31, 2012 included an increase of $18.7 million in accounts receivable and an increase of $29.0 million in inventory offset by increases in accounts payable and accrued liabilities of $20.1 million and $6.1 million, respectively. The translation effect of foreign currencies, primarily the Euro, increased accounts receivable by $6.5 million and inventory by $5.1 million. Excluding the impact of translation of foreign currencies, accounts receivable increased $12.2 million, and inventory increased $23.9 million. The acquisition of ECM Plastics, Inc. contributed $5.1 million and $5.4 million to the increases in accounts receivable and inventory, respectively. Inventory was further impacted as a result of increased tonnage to support the increased sales volume during the quarter. Accounts payable increased $14.6 million, excluding the impact of foreign currency, primarily as a result of improved working capital management, the aforementioned increase in inventory and $1.1 million of incremental accounts payable from ECM Plastics, Inc.
Stocks Discussed: SHLM,