A. Schulman Inc. raised its earnings expectations for 2014 after its European operations showed strong results as the Fairlawn polymer company reported second-quarter finances.
Adjusted net income for fiscal 2014 should be about 25 percent higher than previous estimates and come in between $2.23 to $2.28 per share, Schulman chairman, president and chief executive officer Joseph Gingo said in a statement.
Schulman’s 2014 second quarter net income and earnings per share were lower than a year ago while revenue was higher. Results beat forecasts by industry analysts.
“Driven by the trend of our positive European results, the continuation of relatively stable raw material pricing and modest global economic growth, we have raised our expectations for 2014 adjusted net income to a range of $2.23 to $2.28 per diluted share, which would represent an approximately 25 percent increase over the prior-year results using the high-end of this range,” Gingo said.
Schulman reported earning nearly $6.9 million, or 23 cents per share, on revenue of $588.5 million. Net income was down from $11.8 million, or 40 cents per share, a year ago while revenue was up from $515.4 million.
“Our strong second-quarter financial results reflect sustained operational improvements combined with the benefits of our acquisition strategy,” Gingo said in a statement.
Improved efficiencies and restructuring at Schulman’s European operations helped drive stronger profits, he said.
“At the same time, we continue to benefit from our aggressive acquisition strategy and gained solid contributions from our bolt-on acquisitions this quarter, which exceeded our expectations,” Gingo said. “This combination is adding excitement to what we believe will be a strong 2014 for A. Schulman.”
Sales for the first six months of the fiscal year were $1.18 billion, up 12.1 percent compared to the same period a year ago. Schulman had net income of $21.9 million, or 75 cents per share, for the first six months of fiscal 2014 compared to $23.6 million, or 79 cents per share for the same six month period in fiscal 2013.
Schulman scheduled an earnings conference call for 10 a.m. today with industry analysts. The public can listen in on the call by going to the company website, www.aschulman.com.
Jim Mackinnon can be reached at 330-996-3544 or email@example.com