A. Schulman (SHLM) Cuts FY16 EPS, adj.-EBITDA Outlook
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
A. Schulman, Inc. (Nasdaq: SHLM) announced that it has lowered its full-year 2016 adjusted net income guidance range to $1.90 to $1.95 per diluted share reflecting deteriorating market conditions facing the industry in the Company's largest regions in the U.S. and Europe.
*** The Street was looking for FY16 EPS of $2.56.
"As we move closer to the end of our fourth quarter, it has become apparent that we will not be able to deliver on our adjusted earning per share commitment of $2.40 to $2.45 per diluted share. 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. Similarly, the continued volatility in our major raw materials due to lower oil prices has created further caution in our customers and a reduction in orders," said Bernard Rzepka, president and chief executive officer. "Unfortunately, the weak demand environment has overshadowed the positive impact of several cost reduction and synergy programs that we have been executing throughout the year."
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.
"Our cash flow remains strong and we continue to make good strides in paying down our debt. In July we paid down an additional $18.2 million of debt. Gross debt is now $967 million at the end of July down 14% from the peak of $1.1 billion in June 2015," stated Rzepka. "This progress, combined with over $300 million of available credit under our current credit facility, positions us well to withstand this challenging economic climate as we enter our next fiscal 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 Wednesday, October 26, 2016. The Company will hold its fiscal 2016 fourth-quarter and full-year earnings conference call on Thursday, October 27, 2016 at 10 a.m. Eastern time.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Concordia International (CXRX) CEO to Step Down
- UPDATE: Honeywell (HON) Reports In-Line Q3 EPS; Issues Q4 EPS outlook
- J2 Global (JCOM) Unit Enters Agreement to Acquire Everyday Health (EVDY) in $465M Deal
Create E-mail Alert Related CategoriesCorporate News, Guidance, Hot Corp. News, Hot Guidance, Management Comments, Trader Talk, Trading Halts
Related EntitiesRaising Prices, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!