A. Schulman (SHLM) Misses Q2 EPS by 1c; Plans New Masterbatch Plant in Turkey

(Updated - April 6, 2015 4:37 PM EDT)

A. Schulman (NASDAQ: SHLM) reported Q2 adjusted EPS of $0.39, compared with the analyst estimate of $0.40. Revenue for the quarter came in at $542.3 million versus the consensus estimate of $579.4 million.

Schulman reported adjusted EPS of $0.28 for Q214.

Bernard Rzepka, president and chief executive officer, said, "I am encouraged by the improved operational results in all of our regions during the quarter, including the strong increase in our gross margins as a percent of revenue, compared to the year-ago quarter. These results are a testament to the success of our organic growth initiatives, relentless cost reduction and restructuring activities - as well as the contributions from well-integrated acquisitions - that delivered considerable offset against the negative impact of the rapid decline of the foreign currency."

The company also announced plans to establish a new Masterbatch production plant in Turkey. This new facility will produce, when fully operational, approximately 40 million pounds of the Company's premium additive, white, and breathable masterbatches for food and industrial packaging customers in Turkey and other fast-growing countries in the Middle East and North Africa.

The Company plans to lease existing industrial facilities in the greater Istanbul area, which it will convert into a state-of-the-art production plant at a cost projected to be in the €5 million to €7 million range. This new facility is expected to be in production by the end of fiscal 2016.

For earnings history and earnings-related data on A. Schulman (SHLM) click here.

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