A. Schulman Q1 Profit Rises - Update

(RTTNews) - Resin maker A. Schulman Inc. (SHLM), Monday reported an increase in profit for the first quarter, driven largely by a double-digit revenue growth at Europe, Middle East and Africa as well as Asia Pacific regions.

The Akron, Ohio-based company's first-quarter profit rose to $12.4 million or $0.43 per share from $11.8 million or $0.40 per share last year.

Adjusted earnings for the quarter were $16.7 million or $0.57 per share. On average, four analysts polled by Thomson Reuters expected earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.

First-quarter sales grew 10 percent to $585.4 million from $532.1 million last year. Analysts estimated revenues of $571.9 million for the quarter.

Chairman and Chief Executive Joseph M. Gingo said, "We are extremely encouraged by our strong start to fiscal 2014 and expect to continue the trend of earnings improvement. During the quarter, we successfully capitalized on operational efficiencies in Europe, benefited from prior restructuring in Europe and Latin America, as well as gained solid contributions from our bolt-on acquisitions globally."

Sales from the Europe, Middle East and Africa segment, the company's biggest division, rose 11.7 percent, while Americas sales dropped 2 percent. The Asia Pacific segment's net sales surged 50 percent.

Looking forward to fiscal year 2014, the company lifted its adjusted earnings guidance to a range of $2.13 to $2.18 per share from its prior outlook of $2.08 to $2.13 per share. Analysts currently expect full-year earnings of $2.10 per share.

Commenting on the future, Gingo added, "While we are encouraged by the strong fiscal first-quarter performance, we believe it is wise to approach the rest of the year with cautious optimism as our markets remain competitive and the visibility of future demand is limited."

SHLM closed Monday's trading at $33.90, down $0.55 or 1.60%, on the Nasdaq. The stock rose $1.62 or 4.78% in after-hours trade.