A. Schulman 1Q net income slips on charges

A. Schulman 1st-quarter net income declines without tax benefit, and charges increase

Associated Press

AKRON, Ohio (AP) -- A. Schulman Inc. said Thursday its net income fell 13 percent in the fiscal first quarter on an increase in one-time charges and an expired tax benefit.

The company, a supplier of plastic compounds and resins, said sales in the Americas grew 17 percent, offsetting a small decline in Europe, the Middle East, and Africa. Overall revenue rose 5 percent, to $540.6 million from $517.3 million.

Schulman said its net income decreased to $11.8 million, or 40 cents per share, from $13.6 million, or 46 cents per share. A year ago Schulman reported a tax benefit worth almost $750,000, lifting its income for that period. Its results in the latest quarter were hurt by restructuring costs, asset write downs, and other one-time charges. Excluding those items, the company said it earned 50 cents per share.

Analysts expected net income of 49 cents per share, according to FactSet.

Schulman backed its fiscal-year guidance, saying it still expects to earn between $2.14 and $2.19 per share for the year. Analysts expect $2.17 per share on average.

Shares of A. Schulman fell 2 percent to $29.10 on Thursday. In after-hours trading the stock added $1.50, or 5.2 percent, to $30.60.

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