Polymer company A. Schulman Inc. reported higher sales but lower net income for its fiscal 2013 first quarter ending Nov. 30.
Schulman said Thursday that it earned $11.8 million, or 40 cents per share, on income of $540.6 million for the quarter. Net income was down 13 percent from $13.6 million, or 46 cents per share, for the first quarter a year ago. Schulman revenue was up 4 percent from $517.3 million a year ago.
Adjusted net income was $14.6 million, or 50 cents per share, compared to $15.3 million or 52 cents per share for the first quarter a year ago.
The Fairlawn-based resin maker and compounder said it remains on track to earn $2.14 to $2.19 per share for its fiscal 2013 year.
“We are very encouraged to see modest volume growth in all regions,” Joseph M. Gingo, chairman, president and chief executive officer, said in a statement. “Excluding acquisitions and foreign currency impact, volume increased 3 percent and we saw a sales improvement of 4 percent. Our acquisition strategy continues to position us to better serve customers with our broad array of product offerings. I am proud that we continue to perform well despite a difficult global competitive environment.
Shares of Schulman fell 60 cents to $29.10 on Thursday. Shares are up 37.3 percent from a year ago.
Sales rose in all regions, the company reported. Two acquisitions from 2012 added $3.1 million in “incremental gross profit” in the fiscal 2013 first quarter.
Foreign currency translation hurt earnings by $500,000 or 2 cents per share. Selling, general and administrative costs, excluding some items, rose by $3 million compared to a year ago.
Other strategic initiatives added about $2.3 million in expenses compared to a year ago, the company said.
“We will continue to support value-added strategic initiatives to bolster long-term earnings growth while aggressively pursuing acquisitions that enhance our core offerings and technical capabilities and contribute to our profitability,” Gingo said in a statement. “As we have done in the past, we will continue to monitor trends and refine our operations as needed.”
A. Schulman Inc. has scheduled a one-hour conference call with industry analysts starting at 10 a.m. today. The public can listen online at www.aschulman.com.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
