A. Schulman Cuts FY16 Earnings View Below Market On Weak Demand - Quick Facts

(RTTNews) - A. Schulman, Inc. (SHLM), a supplier of high-performance plastic compounds and resins, on Thursday said it has lowered its full-year 2016 adjusted net income guidance range to $1.90 to $1.95 per share. The revision reflects deteriorating market conditions facing the industry in the Company's largest regions in the U.S. and Europe.

The previous forecast for adjusted earning was $2.40 to $2.45 per share for the year.

On average, five analysts polled by Thomson Reuters expect earnings of $2.41 per share for the year. Analysts' estimates typically exclude special items.

Adjusted EBITDA is now expected to be $225 million to $230 million, lower than previous forecast of $245 million to $250 million.

Corresponding with this reduction in adjusted earnings per share, the Company's previous forecast of adjusted EBITDA of $245 to $250 million has been reduced to $225 million to $230 million.

Bernard Rzepka, president and chief executive officer, stated that as moving closer to the end of fourth quarter, it has become apparent not to be able to deliver on adjusted earning per share forecast.

Rzepka said, "At the beginning of the quarter, our key end-markets in the U.S. and Europe did not present notable headwinds; however, as the quarter progressed we saw double-digit volume contraction. This softness has continued into August. Our top line was particularly impacted in our Masterbatch Solutions, Engineered Plastics and Engineered Composites product families driven by softness in multiple markets."

Rzepka added that the continued volatility in major raw materials due to lower oil prices has created further caution in customers and a reduction in orders. The company said the weak demand environment has overshadowed the positive impact of several cost reduction and synergy programs that has been executing throughout the year.

The Company expects to release fiscal 2016 fourth-quarter and full-year results as well as fiscal 2017 earnings guidance after the market closes on October 26.