Schulman Profit Tops Street, Again Lifts FY Outlook; Stock Up - Update

(RTTNews) - Resin maker A. Schulman Inc (SHLM) Monday reported a lower third-quarter profit, hurt by tax expense and foreign currency losses even as revenue climbed across most segments.

The company again raised its adjusted earnings outlook for 2014, citing positive European results and stable raw material prices.

Following the announcement, Schulman shares gained 6 percent in after-hours trade on the Nasdaq.

CEO Joseph Gingo said the recent quarter benefited from operational improvements and the benefits of its acquisition strategy.

The company said its European team has been able to capitalize on demand in the automotive, electronics and electrical markets, and has seen organic growth in the Americas, partly offset by severe weather in the U.S.

Schulman supplies plastic compounds and resins for packaging, automotive, consumer products, and industrial applications.

The Akron, Ohio-based company second-quarter net income of $6.9 million or $0.23 per share, compared with $11.8 million or $0.40 per share last year.

Results for the recent quarter included acquisition-related charges of $1.8 million and restructuring charges of $2.5 million, among other items.

Excluding items, adjusted earnings for the quarter were $11.3 million or $0.39 per share, compared with $8.2 million or $0.28 per share a year ago.

On average, four analysts polled by Thomson Reuters estimated earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter climbed to $588.5 million from $515.4 million a year ago.

Sales in the Europe, Middle East and Africa segment increased 11.9 percent from last year, AAmericas increased 8.9 percent, and Asia Pacific surged 67 percent.

For fiscal 2014, Schulman now projects adjusted earnings of $2.23 to $2.28 per share, up from prior range of $2.13 to $2.18 per share. Analysts project earnings of $2.16 per share.

Schulman stock closed Monday at $36.32, up $0.09 or 0.25%, on a volume of about 148k shares on the Nasdaq. In after hours, the stock gained $2.29 or 6.31% at $38.61.