A. Schulman Reports Fiscal 2013 Third-Quarter Results

AKRON, Ohio, July 1, 2013 /PRNewswire/ --

  • Net income from continuing operations for the quarter was $10 million, or $0.34 per diluted share; excluding certain items, adjusted net income from continuing operations was $14.8 million, or $0.50 per diluted share
  • Company continues optimizing its cost structure in Europe and Australia and announces actions to adjust capacity in specialty powders facility in the Americas
  • Company updates full-year fiscal 2013 net income guidance, excluding certain items, to a revised range of $1.70 to $1.80 per diluted share, citing continued inconsistency in European markets and additional costs in Latin America
  • Company believes third-quarter challenges are temporary and not systemic in nature and, with a strong balance sheet, the Company is well-positioned for future growth

A. Schulman, Inc. (Nasdaq-GS: SHLM) announced today financial results for the fiscal 2013 third quarter ended May 31, 2013.

Summary of Third-Quarter Results

(In Millions, Except EPS)












Q3

FY13


Q3

FY12


$ or lbs.

Change


%

Change










Volume (lbs.)


490.9


492.5


(1.6)


0%

Net Sales


$548.6


$563.1


($14.5)


-3%

Net Income from Continuing Operations


$10.0


$17.3


($7.3)


-42%

Adjusted Net Income from Continuing Operations*


$14.8


$20.7


($5.9)


-29%

EPS from Continuing Operations as Reported


$0.34


$0.59


($0.25)


-42%

EPS from Continuing Operations as Adjusted*


$0.50


$0.70


($0.20)


-29%

*The Company provides operating results exclusive of certain items such as costs related to acquisitions, restructuring related expenses and asset write-downs, as these costs are not indicative of the Company's ongoing core operations.  The operating results presented in this manner are considered relevant to aid analysis and understanding of the Company's results and business trends. See note later in this release about the use of non-GAAP financial measures. 

Joseph M. Gingo, Chairman, President and Chief Executive Officer, said, "The weak economic environment in Europe has lingered.  We continue to face inconsistent order patterns in our European markets, but the strong performance of our Americas and Asia Pacific segments had helped to offset this challenge in prior periods; however, this did not occur during the fiscal 2013 third quarter, and we have taken the following actions to resolve current challenges:

  • In Brazil, we began streamlining our costs and consolidating two existing facilities into one new facility. However, the costs and disruption to our Latin American operations and the related requirements to service our customers during the transition were greater than anticipated, which resulted in a negative impact on our third-quarter results.  The new plant will be operational during the fiscal 2014 first quarter and will better position us to meet customer demand in an efficient manner. 
  • In Mexico, our operating costs increased as we anticipated improved local market demand that did not materialize. Additionally, we increased capacity needs to serve the shortfall in production caused by the Brazilian consolidation.  We have taken actions to better align our capacity with demand; thus our cost structure in Mexico will be more competitive.
  • We continue to move our global Specialty Powders product family into higher value-added products and optimize our market position.  As previously announced, in our Asia Pacific (APAC) segment we are selling our rotational compounding business in Brisbane, Australia.  In June, we decided to downsize capacity in Grand Junction, Tennessee for an expected annual run rate savings of $1.5 million to $1.7 million in fiscal 2014.
  • As we've previously announced, we've implemented restructuring in EMEA, which is expected to generate approximately $4 million in annual run rate savings in fiscal 2014, bringing the total annualized run rate savings to approximately $10 million from actions taken since 2010."

Fiscal Third-Quarter Results

The 2.6% decrease in net sales for the quarter was primarily a result of the continued sluggish economic environment in Europe, which was only partially offset by the incremental net sales and volume from recent acquisitions. Net sales were negatively impacted by a 2.2% decrease in price per pound and $1.9 million of foreign currency translation. The Company reported net income attributable to A. Schulman, Inc. for the third quarter of $5.2 million, or $0.18 per diluted share.

In the Europe, Middle East and Africa (EMEA) segment, net sales decreased 5.5% for the quarter compared with the prior-year period.  Foreign currency translation negatively impacted net sales by $2.9 million. Overall, price per pound decreased 3.7% across nearly all product families as a result of increased competition, primarily in the specialty powder and distribution product families. As customer demand decreased, volume declined in all product families with the exception of the custom performance colors and masterbatch solutions product families.  EMEA gross profit decreased by $1.9 million compared with the prior-year period. Foreign currency translation negatively impacted gross profit by $0.4 million.

Net sales for the Americas segment increased 3.7% for the quarter compared with the prior-year period due to incremental net sales of $9.8 million from the ECM Plastics, Inc. acquisition. Excluding the impact of ECM, net sales declined due to reduced volume in the engineered plastics and masterbatch solutions product families. Gross profit declined by 6.9% due to the unfavorable mix in the specialty powders product family along with increased costs in Mexico and Brazil. These factors were partially offset by the positive contribution of ECM. Foreign currency translation favorably impacted net sales by $0.6 million.

The Company's Asia Pacific (APAC) segment reported net sales which increased by 3.3% for the quarter compared with the prior-year period, largely due to a 14.7 % increase in price per pound across all product families which more than offset the decreased volume.  Gross profit increased 8.2% compared with the fiscal 2012 third quarter.  

Restructuring Activities

Given the economic environment in Europe, the Company announced further restructuring plans in its EMEA region during the quarter.  As part of this restructuring, the EMEA regional team has reduced headcount.  This action is expected to generate approximately $4 million in annual run rate savings in fiscal 2014. 

As previously announced, the Company intends to sell its rotational compounding business in Brisbane, Australia.  The Company has reflected the results of this business as discontinued operations in its financial statements.  The operating results for this business were previously included in the Company's APAC segment.  The Company expects to complete a sale within 12 months.  This Australian business recorded revenue of approximately $25 million for fiscal 2012. 

In addition, the Company is executing restructuring plans in the Americas region which includes optimizing its Grand Junction, Tennessee facility to better align capacity with demand.  The Grand Junction portion of the project is expected to generate $1.5 million to $1.7 million in annual run rate savings in fiscal 2014.  The Grand Junction facility primarily provides size reduction and custom powder services.  As a result of this action in the U.S., the Company expects to reduce headcount by approximately 25 and to recognize charges of approximately $1 million related to restructuring costs and accelerated depreciation during the fourth quarter of fiscal 2013 and the first half of fiscal 2014.

Summary of Third-Quarter Operating Results
(In Millions, Except Operating Income Per Pound)












Q3

FY13


Q3

FY12


$ Change


%

Change










Operating Income


$16.7


$23.4


($6.7)


-29%

Adjusted Operating Income*


$22.1


$28.1


($6.0)


-21%

Adjusted Operating Income Per lb.*


$0.045


$0.057


($0.012)


-21%

*The Company provides operating results exclusive of certain items such as costs related to acquisitions, restructuring related expenses and asset write-downs, as these costs are not indicative of the Company's ongoing core operations.  The operating results presented in this manner are considered relevant to aid analysis and understanding of the Company's results and business trends. See note later in this release about the use of non-GAAP financial measures. 

Gross profit for the quarter was $73.1 million excluding the effect of certain items, compared with $76.1 million a year ago.  The decline in gross profit was primarily the result of global competitive pricing pressure, unfavorable mix in certain product families and increased manufacturing costs.

SG&A expenses for the quarter increased $3.0 million compared with the same period in the prior year, excluding the effect of certain items.  The increase was primarily attributable to an incremental $1.0 million from recent acquisitions, increased pension expense of $0.5 million in the Company's EMEA region and higher bad debt expense of $0.6 million.  During the quarter, the Company also continued to invest in infrastructure costs related to the newly established regional headquarters in Hong Kong and the new manufacturing facility in India.

Year-to-Date Results

For the nine months, net sales increased $32.5 million compared with the prior-year period.  The increase was primarily a result of incremental net sales of $43.5 million and volume of 30 million pounds from the Elian and ECM acquisitions. Foreign currency translation negatively impacted net sales by $13.5 million.

The Company reported net income of $28.8 million and $39.7 million for the nine months ended May 31, 2013 and 2012, respectively.  Net income from continuing operations was $33.9 million compared with $40.2 million for the comparable period last year. Excluding the effect of certain items such as restructuring-related charges, acquisition-related costs, asset impairments and income tax valuation allowance adjustments, year-to-date adjusted net income was $37.6 million, or $1.28 per diluted share, compared with $47.4 million, or $1.60 per diluted share, a year ago. 

Working Capital/Cash Flow from Operations

Working capital days at May 31, 2013 decreased to 57 days compared with 59 days at May 31, 2012.  Foreign currency translation, primarily the euro, negatively impacted working capital by approximately $4 million

Net cash provided from operations was $52.6 million and net cash provided from operations was $34.5 million for the nine months ended May 31, 2013 and 2012, respectively. The increase of $18.1 million in cash provided from operations was primarily due to improved working capital management.

The Company's cash and cash equivalents increased $6.1 million from August 31, 2012. This increase was driven primarily by cash provided from operations coupled with increased net borrowings on revolving credit facilities of $48 million, and proceeds from the sale of assets of $11.7 million.  This was partially offset by the acquisition of ECM for $36.4 million in cash consideration, expenditures for capital projects of $20.5 million, repayment of the $30.0 million of senior notes in the United States, and dividend payments of $17.3 million.

Business Outlook

The Company is updating its adjusted earnings per share guidance to between $1.70 and $1.80 per diluted share for its fiscal year ending August 31, 2013.

"The challenges we experienced in the third quarter in Latin America are temporary and not systemic in nature.   We will resolve them during the fiscal fourth quarter and we look forward to significant earnings growth in fiscal 2014.  As always, we will continue to globally align our cost structure with demand and improve our product mix.  With a strong balance sheet, solid cash flow generation and distinctive market position, I am confident that we can achieve our strategy to become a premier global specialty chemicals company through organic growth as well as acquisitions and opportunistically provide additional value to our shareholders through share repurchases and dividends," stated Gingo. 

Conference Call on the Web

A live Internet broadcast of A. Schulman's conference call regarding fiscal 2013 third-quarter earnings can be accessed at 10:00 a.m. Eastern Time on Tuesday, July 2, 2013, on the Company's website, www.aschulman.com.  An archived replay of the call will also be available on the website.

Investor Presentation Materials

Senior executives of the Company may participate in meetings with analysts and investors throughout the remainder of this fiscal year. The Company has posted presentation materials, portions of which may be used during such meetings, in the Investors section of its website at www.aschulman.com. The presentation will remain on the website as long as it is in use.

About A. Schulman, Inc.

A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio.  Since 1928, the Company has been providing innovative solutions to meet its customers' demanding requirements.  The Company's customers span a wide range of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others.  The Company employs approximately 3,300 people and has 34 manufacturing facilities globally.  A. Schulman reported net sales of $2.1 billion for the fiscal year ended August 31, 2012.  Additional information about A. Schulman can be found at www.aschulman.com.

Use of Non-GAAP Financial Measures

This release includes certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States ("GAAP").  These non-GAAP financial measures include: net income excluding certain items and net income per diluted share excluding certain items. However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures, and tables included in this release reconcile each non-GAAP financial measure with the most directly comparable GAAP financial measure. The most directly comparable GAAP financial measures for these purposes are net income and net income per diluted share.  The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

The Company provides operating results exclusive of certain items such as costs related to acquisitions, restructuring related expenses and asset write-downs, as these costs are not indicative of the Company's ongoing core operations.  The operating results presented in this manner are considered relevant to aid analysis and understanding of the Company's results and business trends, and the Company uses these financial measures to make decisions, assess performance and allocate resources.  

While the Company believes that these non-GAAP financial measures provide useful supplemental information to investors, there are very significant limitations associated with their use.  These non-GAAP financial measures are not prepared in accordance with GAAP, may not be reported by all of the Company's competitors and may not be directly comparable to similarly titled measures of the Company's competitors due to potential differences in the exact method of calculation.  The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

Cautionary Note on Forward-Looking Statements

A number of the matters discussed in this document that are not historical or current facts deal with potential future circumstances and developments and may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historic or current facts and relate to future events and expectations. Forward-looking statements contain such words as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which management is unable to predict or control, that may cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect the Company's future financial performance, include, but are not limited to, the following:

  • worldwide and regional economic, business and political conditions, including continuing economic uncertainties in some or all of the Company's major product markets or countries where the Company has operations;
  • the effectiveness of the Company's efforts to improve operating margins through sales growth, price increases, productivity gains, and improved purchasing techniques;
  • competitive factors, including intense price competition;
  • fluctuations in the value of currencies in major areas where the Company operates;
  • volatility of prices and availability of the supply of energy and raw materials that are critical to the manufacture of the Company's products, particularly plastic resins derived from oil and natural gas;
  • changes in customer demand and requirements;
  • effectiveness of the Company to achieve the level of cost savings, productivity improvements, growth and other benefits anticipated from acquisitions, joint ventures and restructuring initiatives;
  • escalation in the cost of providing employee health care;
  • uncertainties regarding the resolution of pending and future litigation and other claims;
  • the performance of the global automotive market; and
  • further adverse changes in economic or industry conditions, including global supply and demand conditions and prices for products.

The risks and uncertainties identified above are not the only risks the Company faces. Additional risk factors that could affect the Company's performance are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2012. In addition, risks and uncertainties not presently known to the Company or that it believes to be immaterial also may adversely affect the Company. Should any known or unknown risks or uncertainties develop into actual events, or underlying assumptions prove inaccurate, these developments could have material adverse effects on the Company's business, financial condition and results of operations.

SHLM_ALL

www.aschulman.com

 

A. SCHULMAN, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS






Three months ended May 31,


Nine months ended May 31,


2013


2012


2013


2012


Unaudited

(In thousands, except per share data)

Net sales

$

548,589



$

563,071



$

1,596,114



$

1,563,588


Cost of sales

475,766



487,016



1,391,113



1,354,718


Selling, general and administrative expenses

53,188



48,271



153,837



143,662


Restructuring expense

1,807



1,944



5,413



6,785


Asset impairment

1,121



2,586



1,619



2,586


Curtailment (gain) loss



(101)



333



(310)


Operating income

16,707



23,355



43,799



56,147


Interest expense

1,865



1,953



5,559



6,532


Interest income

(80)



(318)



(408)



(674)


Foreign currency transaction (gains) losses

139



(199)



676



410


Other (income) expense, net

(27)



(71)



(374)



(1,206)


Income from continuing operations before taxes

14,810



21,990



38,346



51,085


Provision (benefit) for U.S. and foreign income taxes

4,497



4,422



3,584



10,066


Income from continuing operations

10,313



17,568



34,762



41,019


Loss from discontinued operations, net of tax

(4,821)



(320)



(5,102)



(518)


Net income

5,492



17,248



29,660



40,501


Noncontrolling interests

(275)



(252)



(881)



(850)


Net income attributable to A. Schulman, Inc.

$

5,217



$

16,996



$

28,779



$

39,651










Weighted-average number of shares outstanding:








Basic

29,316



29,440



29,275



29,411


Diluted

29,477



29,569



29,421



29,585










Basic earnings per share of common stock attributable to A. Schulman, Inc.








Income from continuing operations

$

0.34



$

0.59



$

1.16



$

1.37


Loss from discontinued operations

(0.16)



(0.01)



(0.18)



(0.02)


      Net income attributable to A. Schulman, Inc.

$

0.18



$

0.58



$

0.98



$

1.35










Diluted earnings per share of common stock attributable to A. Schulman, Inc.








Income from continuing operations

$

0.34



$

0.59



$

1.15



$

1.36


Loss from discontinued operations

(0.16)



(0.02)



(0.17)



(0.02)


      Net income attributable to A. Schulman, Inc.

$

0.18



$

0.57



$

0.98



$

1.34










Cash dividends per common share

$

0.195



$

0.190



$

0.585



$

0.530


 


A. SCHULMAN, INC.

CONSOLIDATED BALANCE SHEETS






May 31,
2013


August 31,
2012


Unaudited

(In thousands)

ASSETS




Current assets:




Cash and cash equivalents

$

130,088



$

124,031


Accounts receivable, less allowance for doubtful accounts of $10,222 at May 31, 2013 and $9,190 at August 31, 2012

322,872



304,698


Inventories, average cost or market, whichever is lower

272,744



247,222


Prepaid expenses and other current assets

46,081



32,403


Total current assets

771,785



708,354


Property, plant and equipment, at cost:




Land and improvements

27,666



28,739


Buildings and leasehold improvements

145,013



156,951


Machinery and equipment

348,597



363,811


Furniture and fixtures

38,174



39,404


Construction in progress

12,391



14,320


Gross property, plant and equipment

571,841



603,225


Accumulated depreciation and investment grants of $473 at May 31, 2013 and $579 at August 31, 2012

356,765



377,349


Net property, plant and equipment

215,076



225,876


Other assets:




Deferred charges and other noncurrent assets

53,683



41,146


Goodwill

138,187



128,353


Intangible assets, net

94,481



90,038


Total other assets

286,351



259,537


Total assets

$

1,273,212



$

1,193,767


                                       LIABILITIES AND EQUITY

Current liabilities:




Accounts payable

$

280,133



$

248,069


U.S. and foreign income taxes payable

5,086



4,268


Accrued payroll, taxes and related benefits

40,003



42,275


Other accrued liabilities

47,576



37,282


Short-term debt

7,213



35,411


Total current liabilities

380,011



367,305


Long-term debt

221,017



174,466


Pension plans

96,671



92,581


Other long-term liabilities

26,758



29,324


Deferred income taxes

21,223



22,402


Total liabilities

745,680



686,078


Commitments and contingencies




Stockholders' equity:




Common stock, $1 par value, authorized - 75,000 shares, issued - 48,096 shares at May 31, 2013 and 47,958 shares at August 31, 2012

48,096



47,958


Additional paid-in capital

263,336



259,253


Accumulated other comprehensive income (loss)

(1,724)



(5,921)


Retained earnings

582,671



571,205


Treasury stock, at cost, 18,683 shares at May 31, 2013 and 18,649 shares at August 31, 2012

(371,912)



(371,099)


Total A. Schulman, Inc.'s stockholders' equity

520,467



501,396


Noncontrolling interests

7,065



6,293


Total equity

527,532



507,689


Total liabilities and equity

$

1,273,212



$

1,193,767


 

A. SCHULMAN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS




Nine months ended May 31,


2013


2012


Unaudited

(In thousands)

Operating from continuing and discontinued operations:




Net income

$

29,660



$

40,501


Adjustments to reconcile net income to net cash provided from (used in) operating activities:




      Depreciation

22,489



21,860


      Amortization

8,665



6,937


      Deferred tax provision

(8,879)



(7,414)


      Pension, postretirement benefits and other deferred compensation

6,465



4,327


      Asset impairment

5,619



2,586


      Curtailment (gain) loss

333



(310)


Changes in assets and liabilities, net of acquisitions:




      Accounts receivable

(13,123)



(6,501)


      Inventories

(18,841)



(31,161)


      Accounts payable

27,092



16,726


      Income taxes

(1,157)



(6,123)


      Accrued payroll and other accrued liabilities

2,034



(11,305)


      Other assets and long-term liabilities

(7,780)



4,380


      Net cash provided from (used in) operating activities

52,577



34,503


Investing from continuing and discontinued operations:




Expenditures for property, plant and equipment

(20,518)



(27,505)


Proceeds from the sale of assets

11,745



1,255


Business acquisitions, net of cash acquired

(36,360)



(64,918)


Net cash provided from (used in) investing activities

(45,133)



(91,168)


Financing from continuing and discontinued operations:




Cash dividends paid

(17,313)



(15,352)


Increase (decrease) in short-term debt

(28,086)



(5,623)


Borrowings on revolving credit facilities

133,950



166,830


Repayments on revolving credit facilities

(85,950)



(139,769)


Borrowings on long-term debt

147



130


Repayments on long-term debt

(3,291)



(3,512)


Cash distributions to noncontrolling interests



(580)


Issuances of stock, common and treasury

1,469



1,079


Redemptions of common stock

(397)



(375)


Purchases of treasury stock

(1,021)



(21,474)


      Net cash provided from (used in) financing activities

(492)



(18,646)


Effect of exchange rate changes on cash

(895)



(10,989)


Net increase (decrease) in cash and cash equivalents

6,057



(86,300)


Cash and cash equivalents at beginning of period

124,031



155,753


Cash and cash equivalents at end of period

$

130,088



$

69,453


 

A. SCHULMAN, INC.

Reconciliation of GAAP and Non-GAAP Financial Measures

Unaudited

(In thousands, except per share data)








Three months ended May 31,


Nine months ended May 31,



2013


2012


2013


2012



(In thousands, except per

 share data)

Net income attributable to A. Schulman, Inc.:









GAAP, as reported


$

5,217



$

16,996



$

28,779



$

39,651


Loss from discontinued operations, net of tax


(4,821)



(320)



(5,102)



(518)


Net income from continuing operations


$

10,038



$

17,316



$

33,881



$

40,169


Certain items, net of tax:









      Asset write-downs (1)


1,386



1,917



2,417



1,917


      Costs related to acquisitions (2)


890



147



1,799



952


      Restructuring related (3)


2,472



1,556



5,554



4,904


      Inventory step-up (4)




53



138



451


      Tax benefits (charges) (5)


(17)



(260)



(6,177)



(967)


      Total certain items, net of tax


$

4,731



$

3,413



$

3,731



$

7,257


Non-GAAP


$

14,769



$

20,729



$

37,612



$

47,426











Non-GAAP diluted EPS


$

0.50



$

0.70



$

1.28



$

1.60











Weighted-average number of shares outstanding -diluted


29,477



29,569



29,421



29,585











1 - Asset write-downs primarily relate to asset impairments and accelerated depreciation.

2 - Costs related to acquisitions include those costs incurred to pursue intended targets.

3 - Restructuring related costs include items such as employee severance charges, lease termination charges, curtailment gains/losses, other employee termination costs and charges related to the reorganization of the legal entity structure.

4 - Inventory step-up costs include the adjustment for fair value of  inventory acquired as a result of acquisition purchase accounting.

5 - Tax benefits (charges) include the effect of the adjustments to the Italian valuation allowance in fiscal 2012 and the adjustments to the Germany and Brazil valuation allowances in fiscal 2013.

 

A. SCHULMAN, INC.

SUPPLEMENTAL SEGMENT INFORMATION








Three months ended May 31,


Nine months ended May 31,



2013


2012


2013


2012



Unaudited

(In thousands, except for %'s)

Pounds sold to unaffiliated customers









EMEA


303,662



309,200



875,393



882,292


Americas


162,411



155,705



479,060



439,415


APAC


24,805



27,548



69,779



73,645


Total pounds sold to unaffiliated customers


490,878



492,453



1,424,232



1,395,352











Net sales to unaffiliated customers









EMEA


$

362,847



$

383,852



$

1,056,533



$

1,069,304


Americas


152,535



147,059



446,314



404,685


APAC


33,207



32,160



93,267



89,599


Total net sales to unaffiliated customers


$

548,589



$

563,071



$

1,596,114



$

1,563,588











Segment gross profit









EMEA


$

47,669



$

49,612



$

130,701



$

133,926


Americas


19,796



21,273



59,272



60,796


APAC


5,679



5,250



16,169



14,825


Total segment gross profit


73,144



76,135



206,142



209,547


Inventory step-up




(80)



(138)



(677)


Accelerated depreciation and restructuring related


(321)





(1,003)




Total gross profit


$

72,823



$

76,055



$

205,001



$

208,870











Segment operating income









EMEA


$

20,222



$

23,413



$

47,888



$

57,953


Americas


5,340



7,869



18,977



19,323


APAC


2,738



2,969



8,231



8,242


Total segment operating income


28,300



34,251



75,096



85,518


Corporate and other


(6,192)



(6,195)



(19,651)



(18,567)


Total operating income before certain items


22,108



28,056



55,445



66,951


Costs related to acquisitions


(849)



(192)



(1,837)



(1,066)


Restructuring related


(3,166)



(1,944)



(6,772)



(6,785)


Accelerated depreciation


(265)





(947)




Asset impairment


(1,121)



(2,586)



(1,619)



(2,586)


Curtailment gain (loss)




101



(333)



310


Inventory step-up




(80)



(138)



(677)


Operating income


16,707



23,355



43,799



56,147


Interest expense, net


(1,785)



(1,635)



(5,151)



(5,858)


Foreign currency transaction gains (losses)


(139)



199



(676)



(410)


Other income (expense), net


27



71



374



1,206


Income from continuing operations before taxes


$

14,810



$

21,990



$

38,346



$

51,085











Capacity utilization









EMEA


81

%


87

%


77

%


81

%

Americas


67

%


70

%


65

%


67

%

APAC


66

%


89

%


69

%


82

%

Worldwide


74

%


80

%


71

%


75

%

 

SOURCE A. Schulman, Inc.



RELATED LINKS
http://www.aschulman.com

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