Profits up for A. Schulman

Material supplier A. Schulman Inc. reported fourth quarter net sales that were approximately 7 per cent higher compared with Q4 2016 figures, and a profit for fiscal 2017 of US$34.2 million, following a loss of US$356 million in 2016.

“In fiscal 2017, our goal was to reset the business, setting the stage for the progressive, long-term shareholder value creation our investors expect from A. Schulman,” said Joseph M. Gingo, the company’s chairman, president, and CEO. “I am proud of the progress our team has made this past year. We have simplified our product family structure, and tackled several difficult operational and consolidation issues we faced. Further, we enhanced our sales resources and improved our pricing processes to drive improving operational and financial performance in fiscal 2018 and beyond. We have more work and opportunities ahead of us.”

Joseph M. Gingo.

Fairlawn, Ohio-based A. Schulman’s businesses in Latin America and Asia-Pacific are strong and growing, Gringo continued, as is the company’s global engineered composites business. “In fact, our Latin American region had a record level of operating income for the year while our Asia-Pacific region reported, excluding foreign currency, a double-digit increase in operating income,” he said. “Engineered composite growth was driven by Quantum, our strong carbon fiber sheet molding business. We will continue to invest in growth platforms while building positive sales momentum in Europe. Lastly, we have stabilized our U.S. and Canada business which will drive future profitability.”

The company anticipates adjusted earnings before interest, tax, depreciation, and amortization
for fiscal 2018 to be in the range of US$220 million to US$230 million. “I believe fiscal 2018 will be the first year in our recovery as we deliver growth that generates strong cash flows and drives profit,” said Gingo. “If we execute our plan properly and capture the opportunities we’ve created for ourselves, we will return A. Schulman to a sustainable growth and profitability trajectory that we experienced prior to fiscal 2015.”