A. Schulman Inc. Reports Operating Results (10-K)

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Oct 24, 2012
A. Schulman Inc. (SHLM, Financial) filed Annual Report for the period ended 2012-08-31.

A. Schulman Inc has a market cap of $710.9 million; its shares were traded at around $24.28 with a P/E ratio of 11.6 and P/S ratio of 0.3. The dividend yield of A. Schulman Inc stocks is 3.2%. A. Schulman Inc had an annual average earning growth of 2.5% over the past 10 years.

Highlight of Business Operations:

The Company s business is highly competitive. The Company competes with producers of basic plastic resins, many of which also operate compounding plants, as well as other independent plastic compounders. The producers of basic plastic resins generally are large producers of petroleum and chemicals, which are much larger than the Company and have greater financial resources.

The Company also competes with other merchants and distributors of plastic resins and other products. Limited information is available to the Company as to the extent of its competitors sales and earnings in respect of these activities, but management believes that the Company has only a small fraction of the total market.

The principal methods of competition in plastics manufacturing are innovation, application and processing know-how, price, availability of inventory, quality and service. The principal methods of competition for merchant and distribution activities are price, availability of inventory and service. Management believes it has strong financial capabilities, excellent supplier relationships and the ability to provide quality plastic compounds at competitive prices.

The Company uses various trademarks and tradenames in its business. These trademarks and tradenames protect names of certain of the Company s products and are significant to the extent they provide a certain amount of goodwill and name recognition in the industry. The Company also holds patents in various parts of the world for certain of its products. Additionally, the Company utilizes proprietary formulas in its product manufacturing and benefits from intangible assets acquired through acquisitions. Collectively, the Company's intellectual property, including other intangible assets, contribute to profitability.

The Company has facilities and offices positioned throughout the world. Financial information related to the Company s geographic areas for the three year period ended August 31, 2012 appears in Note 13 to the consolidated financial statements in ITEM 8, FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA, of this Annual Report on Form 10-K and is incorporated herein by reference. For additional information regarding the risks attendant to the Company s foreign operations, see ITEM 1A, RISK FACTORS, and ITEM 7A,

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