A. Schulman rises on Q4 profit surge
A. Schulman, Inc. (Nasdaq: SHLM) shares are jumping after the supplier of plastic compounds and resins announced before the opening that its fourth-quarter earnings rose to $8.5 million, or $0.30 per share, beating Wall Street estimates of $0.25 per share and compared with $7.5 million, or $0.26 per share, a year earlier.
“We have seen margins improve sequentially for our North American operations since the first quarter of fiscal 2007,” CEO Terry Haines said in a statement. “We are also cautiously optimistic about the continuing recovery we are seeing in our European markets.”
Fourth-quarter sales rose 10% to $464.6 million, above analyst estimates of $421.3 million and compared with $421.3 million a year earlier.
Going forward, A. Schulman said it expects fiscal 2008 results to be “significantly better” than fiscal 2007 with net income exceeding $36 million. The Akron, Ohio-based company said anticipated benefits from its cost savings programs, recoveries in its European and North American markets and contributions from a product launch are expected to fuel the profit increase.
In morning trading, SHLM shares are up16.09%, or $3.37, at $24.32. Over the last 52 weeks, shares have ranged from $19 to $25.97.
