A. Schulman reports increased sales, profits in Q2 2013

Plastic compounds supplier A. Schulman Inc. reported a 30 per cent increase in 2013 second-quarter profits.

Akron, Ohio-based Schulman reported quarterly net income of US$11.8 million compared to US$9 million last year.

Sales increased 5.3 per cent from last year, Schulman said in a statement, but was somewhat offset by weak demand and lower margins in the Europe, the Middle East, and Africa (EMEA) segments. The fiscal second quarter “was the first quarter in quite some time where our Americas and Asia Pacific segments could not offset softness in our Europe, Middle East and Africa segment,” Schulman chairman, president and CEO Joseph Gingo said in a statement.

Schulman lowered its adjusted earnings outlook for fiscal year 2013, citing renewed global economic softness. The company also is progressing with its restructuring efforts in Brazil and Europe to address weakening market trends.

Last month, Schulman offered to acquire specialty materials and chemicals maker Ferro Corporation for $855 million, including debt. Schulman has requested the Ferro Board to reconsider their expressed position to remain independent and urged Ferro shareholders to support such a move. The deal represents a total equity value of US$563 million. In this recent news release, Gingo addressed the issue. “We believe our offer for Ferro merits serious consideration,” he said. “And we continue to engage Ferro shareholders in hopes that we can enter into mutually beneficial conversations with their board.”