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Last Update: 09-Apr-13 07:40 ET
A Schulman shares little changed in pre-market following miss on earnings
A. Schulman (SHLM 29.75 +0.00) reported second quarter earnings of $0.27 per share, ex items, $0.13 worse than the Capital IQ consensus Estimate of $0.40, while revenues rose 5.3% year/year to $522.4 million versus the $515.85 million consensus. The company issued lowered guidance for fiscal year 2013 with EPS of $2.08-2.13 from prior guidance of $2.14-2.19 versus the $2.17 consensus. During the quarter, the Company initiated a restructuring plan to consolidate two existing manufacturing facilities in Brazil into one new facility. This action reflects the Company's focus on streamlining costs, along with the need to create a single, efficient facility with optimal equipment to serve the niche market. The facility consolidation is expected to be completed by the end of the fiscal 2014 first quarter. In the second quarter of fiscal 2013, the Company recognized $0.3 million of non-cash pretax employee-related restructuring costs and $0.3 million of accelerated depreciation. The Company expects to recognize additional employee-related restructuring and accelerated depreciation charges totaling approximately $1.5 million during the remainder of fiscal 2013. Outlook: "Although we are not encouraged by the global economic environment and its impact on the plastic compounding industry, as we have successfully demonstrated in the past we will aggressively manage what we can control while driving growth through new products and value-generating acquisitions, including expansion into adjacent markets...We believe our offer for Ferro merits serious consideration, and we continue to engage Ferro (FOE) shareholders in hopes that we can enter into mutually beneficial conversations with their board."
