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Form 8-K SCHULMAN A INC For: Jan 06

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January 6, 2015 4:27 PM EST


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of Report (Date of earliest event reported) January 6, 2015����

A. SCHULMAN, INC.
(Exact name of registrant as specified in its charter)

Delaware
�
0-7459
�
34-0514850
(State or other jurisdiction of incorporation)
�
(Commission File Number)
�
(IRS Employer Identification No.)

3637 Ridgewood Rd, Fairlawn, Ohio
44333
(Address of principal executive offices)
(Zip Code)

(330) 666-3751
(Registrants telephone number, including area code)

�
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))







ITEM 2.02����RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On January 6, 2015, A. Schulman, Inc. (the Company) announced earnings for the quarter ended November 30, 2014. A copy of the press release announcing these results is attached as Exhibit 99.1 hereto and incorporated by reference herein.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 is being furnished and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.

ITEM 9.01����FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.


Exhibit Number
Description
�
�
99.1
Press Release, dated January 6, 2015 (filed herewith)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


�
�
�
A. Schulman, Inc.
�
�
�
�
�
�
By:
/s/ David C. Minc
�
�
�
David C. Minc
�
�
�
Vice President, Chief Legal Officer and Secretary

Date: January 6, 2015





Exhibit 99.1


FOR IMMEDIATE RELEASE ����

A. SCHULMAN REPORTS FISCAL 2015 FIRST-QUARTER RESULTS AND REAFFIRMS FULL YEAR GUIDANCE

"
Net income from continuing operations for the first quarter of fiscal 2015 was $13.2 million, or $0.45 per diluted share, compared with $12.4 million, or $0.43 per diluted share, in the fiscal 2014 first quarter

"
Adjusted net income from continuing operations for the first quarter of fiscal 2015, excluding certain items, was $18.5 million, or $0.63 per diluted share a 10.5% improvement over the prior year

"
Company reaffirms its fiscal 2015 adjusted net income guidance of $2.60 to $2.65 per diluted share
����
AKRON, Ohio - January 6, 2015 - A. Schulman, Inc. (Nasdaq-GS: SHLM) announced today earnings for the fiscal first quarter ended November 30, 2014.
��
Bernard Rzepka, President and Chief Executive Officer, said, We are pleased by the good start to fiscal 2015. Our European team was able to maintain relatively flat results in a difficult economic landscape while our Americas and APAC regions more than offset the weakness in Europe. Our seasoned leaders will continue to take proactive steps such as the recently announced restructuring initiatives to drive efficiencies and help mitigate foreign exchange fluctuations. We had solid contributions from our recent acquisitions and continue to execute on our organic initiatives to create a strong and sustainable pipeline of innovative products and seek out value-added markets.

Fiscal First-Quarter Results
Net sales for the fiscal 2015 first quarter were $615.1 million, an increase of 5% compared with $585.4 million in the prior-year quarter. Foreign currency translation negatively impacted net sales by $26.2 million. Excluding the impact of foreign currency translation, revenues would have increased by $55.9 million to $641.3 million for the quarter, up 9.5% over the prior year period. Gross margin, excluding certain items, in the first quarter as a percent of net sales improved to 14.2% compared with 13.7% in the prior year period.

Net sales for EMEA in the quarter were $371.2 million, a decrease of $21.3 million, or 5.4%, compared with the prior-year period.� Foreign currency translation negatively impacted net sales by $21.5 million. The benefit from the Companys recent Specialty Plastics acquisition was offset by a decline in organic sales across all product families. EMEA gross profit was $49.7 million, a decrease of $2.2 million compared with the same prior-year period. The decrease in the segments gross profit was mainly attributed to the unfavorable foreign currency translation impact of $3 million, lower organic volumes and higher pension expense of




$0.2 million which were only partially offset by the incremental contribution of the Specialty Plastics acquisition.

Net sales for the Americas were $190.9 million, an increase of 30.3% or $44.4 million in the first quarter compared with the prior-year period. Volume increased 19.8% or 30.7 million pounds during the quarter. The incremental contribution of the recent acquisitions accounted for virtually all of the change in both net sales and volume during the quarter, which was a direct result of the Companys successful acquisition strategy. Foreign currency translation negatively impacted net sales by $4.2 million. Segment gross profit for the Americas was $30.3 million in the quarter, an increase of $8.8 million or 41% compared with the same period last year. The increase was primarily attributed to the contributions from recent acquisitions and improved product mix in the Companys Specialty Powders product family.

Net sales for APAC were $53 million, an increase of 14.1% or $6.6 million in the first quarter compared with the prior-year period. Volume increased 19.8% or 7 million pounds during the quarter. During the quarter, the Compco acquisition in Australia contributed net sales and volume of $3.4 million and 2.3 million pounds, respectively. Excluding the Compco acquisition, organic volume increased across nearly all product families but was partially offset by decreased price per pound driven by competitive pricing pressures. Segment gross profit for APAC for the quarter increased $0.6 million or 9.5% compared with the prior-year period.

Working Capital/Cash Flow From Operations
Cash provided from operations was $10.3 million in the first quarter of fiscal 2015 compared with $9.8 million for the first quarter of fiscal 2014. Working capital was flat at 58 days at the end of the fiscal 2015 and 2014 first quarters.

Capital expenditures for the quarter were $10.3 million compared with $9.6 million for the prior-year quarter, and were primarily related to the regular and ongoing investment in the Company's global manufacturing facilities. During the first quarter of fiscal 2015, the Company declared and paid quarterly cash dividends for a total amount of $6.0 million and repurchased shares of common stock for a total cost of $3.3 million.

Business Outlook
Rzepka said, Despite our double-digit earnings growth in the first quarter, we believe fiscal 2015 will be challenging. We are already seeing the adverse impact related to macro-economic conditions and currency fluctuations. However, we will continue to aggressively focus on our acquisition strategy, proactive restructuring actions, and marketing initiatives which are gaining good traction to overcome economic events which are out of our control. We are working hard to realize optimal synergies from our recent acquisitions; evaluating our footprint to match current demand, and efficiently managing our expenses. The focus we have on safety, smart sales and smart savings will help us to offset the slow global economic environment while allowing us to better serve our customers and position us for growth. As a result, we remain confident that our fiscal 2015 adjusted net income will be in the range of $2.60 to $2.65 per diluted share.

Conference Call on the Web
A live Internet broadcast of A. Schulmans conference call regarding fiscal 2015 first-quarter earnings can be accessed at 10:00 a.m. Eastern Time on Wednesday, January 7, 2015, on the Companys website, www.aschulman.com. An archived replay of the call will also be available on the website.

Investor Presentation Materials
Senior executives of the Company may participate in meetings with analysts and investors throughout the fiscal year. The Company has posted presentation materials, portions of which may be used during such




meetings, in the Investors section of its website at www.aschulman.com. The presentation will remain on the website as long as it is in use.

About A. Schulman, Inc.
A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio.� Since 1928, the Company has been providing innovative solutions to meet its customers' demanding requirements.� The Company's customers span a wide range of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others.� The Company employs approximately 3,900 people and has 43 manufacturing facilities globally.� A. Schulman reported net sales of approximately $2.5 billion for the fiscal year ended August 31, 2014. Additional information about A. Schulman can be found at www.aschulman.com.

Use of Non-GAAP Financial Measures
This release includes certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). These non-GAAP financial measures include segment gross profit, SG&A expenses excluding certain items, segment operating income, operating income before certain items, net income excluding certain items and net income per diluted share excluding certain items, as discussed further in the Reconciliation of GAAP and Non-GAAP Financial Measures below. These non-GAAP financial measures are considered relevant to aid analysis and understanding of the Companys results and business trends. However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures, and tables included in this release reconcile each non-GAAP financial measure with the most directly comparable GAAP financial measure. The most directly comparable GAAP financial measures for these purposes are gross profit, SG&A expenses, operating income, net income and net income per diluted share. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

While the Company believes that these non-GAAP financial measures provide useful supplemental information to investors, there are very significant limitations associated with their use. These non-GAAP financial measures are not prepared in accordance with GAAP, may not be reported by all of the Companys competitors and may not be directly comparable to similarly titled measures of the Companys competitors due to potential differences in the exact method of calculation. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

Cautionary Statements
A number of the matters discussed in this document that are not historical or current facts deal with potential future circumstances and developments and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historic or current facts and relate to future events and expectations. Forward-looking statements contain such words as anticipate, estimate, expect, project, intend, plan, believe, and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Forward-looking statements are based on managements current expectations and include known and unknown risks, uncertainties and other factors, many of which management is unable to predict or control, that may cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements,




and that could adversely affect the Companys future financial performance, include, but are not limited to, the following:

"
worldwide and regional economic, business and political conditions, including continuing economic uncertainties in some or all of the Companys major product markets or countries where the Company has operations;
"
the effectiveness of the Companys efforts to improve operating margins through sales growth, price increases, productivity gains, and improved purchasing techniques;
"
competitive factors, including intense price competition;
"
fluctuations in the value of currencies in major areas where the Company operates;
"
volatility of prices and availability of the supply of energy and raw materials that are critical to the manufacture of the Companys products, particularly plastic resins derived from oil and natural gas;
"
changes in customer demand and requirements;
"
effectiveness of the Company to achieve the level of cost savings, productivity improvements, growth and other benefits anticipated from acquisitions, joint ventures and restructuring initiatives;
"
escalation in the cost of providing employee health care;
"
uncertainties regarding the resolution of pending and future litigation and other claims;
"
the performance of the global automotive market as well as other markets served;
"
further adverse changes in economic or industry conditions, including global supply and demand conditions and prices for products; and
"
operating problems with our information systems as a result of system security failures such as viruses, computer "hackers or other causes.

The risks and uncertainties identified above are not the only risks the Company faces. Additional risk factors that could affect the Companys performance are set forth in the Companys Annual Report on Form 10-K for the fiscal year ended August�31, 2014. In addition, risks and uncertainties not presently known to the Company or that it believes to be immaterial also may adversely affect the Company. Should any known or unknown risks or uncertainties develop into actual events, or underlying assumptions prove inaccurate, these developments could have material adverse effects on the Companys business, financial condition and results of operations.

SHLM_ALL

Contact information:
Jennifer K. Beeman
Director of Corporate Communications & Investor Relations
A. Schulman, Inc.
3637 Ridgewood Road
Fairlawn, Ohio 44333
Tel: 330-668-7346
www.aschulman.com





A. SCHULMAN, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
�
Three months ended November 30,
�
2014
�
2013
�
Unaudited
(In thousands, except per share data)
Net sales
$
615,053

�
$
585,397

Cost of sales
528,209

�
506,289

Selling, general and administrative expenses
60,547

�
57,398

Restructuring expense
5,219

�
1,778

Operating income
21,078

�
19,932

Interest expense
2,359

�
2,191

Interest income
(95
)
�
(62
)
Foreign currency transaction (gains) losses
1,099

�
682

Other (income) expense, net
(159
)
�
(78
)
Income from continuing operations before taxes
17,874

�
17,199

Provision (benefit) for U.S. and foreign income taxes
4,486

�
4,568

Income from continuing operations
13,388

�
12,631

Income (loss) from discontinued operations, net of tax
(10
)
�
2,655

Net income
13,378

�
15,286

Noncontrolling interests
(220
)
�
(215
)
Net income attributable to A. Schulman, Inc.
$
13,158

�
$
15,071

�
�
�
�
Weighted-average number of shares outstanding:
�
�
�
Basic
29,017

�
29,017

Diluted
29,468

�
29,205

�
�
�
�
Basic earnings per share attributable to A. Schulman, Inc.
�
�
�
Income from continuing operations
$
0.45

�
$
0.43

Income (loss) from discontinued operations


�
0.09

Net income attributable to A. Schulman, Inc.
$
0.45

�
$
0.52

�
�
�
�
Diluted earnings per share attributable to A. Schulman, Inc.
�
�
�
Income from continuing operations
$
0.45

�
$
0.43

Income (loss) from discontinued operations


�
0.09

Net income attributable to A. Schulman, Inc.
$
0.45

�
$
0.52

�
�
�
�
Cash dividends per common share
$
0.205

�
$
0.200








A. SCHULMAN, INC.
CONSOLIDATED BALANCE SHEETS
�
November�30,
2014
�
August 31,
2013
�
Unaudited
(In thousands)
ASSETS
Current assets:
�
�
�
Cash and cash equivalents
$
132,109

�
$
135,493

Accounts receivable, less allowance for doubtful accounts of $10,674 at November 30, 2014 and $10,844 at August 31, 2014
376,486

�
384,444

Inventories
296,539

�
292,141

Prepaid expenses and other current assets
47,591

�
40,473

Total current assets
852,725

�
852,551

Property, plant and equipment, at cost:
�
�
�
Land and improvements
27,155

�
28,439

Buildings and leasehold improvements
154,656

�
160,858

Machinery and equipment
394,884

�
398,563

Furniture and fixtures
39,785

�
41,255

Construction in progress
17,676

�
16,718

Gross property, plant and equipment
634,156

�
645,833

Accumulated depreciation
384,143

�
391,912

Net property, plant and equipment
250,013

�
253,921

Deferred charges and other noncurrent assets
63,376

�
65,079

Goodwill
198,649

�
202,299

Intangible assets, net
131,488

�
138,634

Total assets
$
1,496,251

�
$
1,512,484

LIABILITIES AND EQUITY
Current liabilities:
�
�
�
Accounts payable
$
314,315

�
$
314,957

U.S. and foreign income taxes payable
6,075

�
6,385

Accrued payroll, taxes and related benefits
47,661

�
54,199

Other accrued liabilities
52,270

�
46,054

Short-term debt
32,012

�
31,748

Total current liabilities
452,333

�
453,343

Long-term debt
353,262

�
339,546

Pension plans
123,923

�
129,949

Deferred income taxes
23,222

�
23,826

Other long-term liabilities
28,704

�
29,369

Total liabilities
981,444

�
976,033

Commitments and contingencies
�
�
�
Stockholders equity:
�
�
�
Common stock, $1 par value, authorized - 75,000 shares, issued - 48,186 shares at November 30, 2014 and 48,185 shares at August 31, 2014
48,186

�
48,185

Additional paid-in capital
269,818

�
268,545

Accumulated other comprehensive income (loss)
(41,946
)
�
(16,691
)
Retained earnings
614,094

�
606,898

Treasury stock, at cost, 19,081 shares at November 30, 2014 and 18,973 shares at August 31, 2014
(383,199
)
�
(379,894
)
Total A. Schulman, Inc.s stockholders equity
506,953

�
527,043

Noncontrolling interests
7,854

�
9,408

Total equity
514,807

�
536,451

Total liabilities and equity
$
1,496,251

�
$
1,512,484





A. SCHULMAN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
�
Three months ended November 30,
�
2014
�
2013
�
Unaudited
(In thousands)
Operating from continuing and discontinued operations:
�
�
�
Net income
13,378

�
15,286

Adjustments to reconcile net income to net cash provided from (used in) operating activities:
�
�
�
Depreciation
8,963

�
7,865

Amortization
4,066

�
3,244

Deferred tax provision (benefit)
633

�
(693
)
Pension, postretirement benefits and other compensation
2,452

�
2,550

Gain on sale of assets from discontinued operations


�
(3,028
)
Changes in assets and liabilities, net of acquisitions:
�
�
�
Accounts receivable
(4,731
)
�
(12,681
)
Inventories
(16,341
)
�
(25,936
)
Accounts payable
8,200

�
24,826

Income taxes
463

�
765

Accrued payroll and other accrued liabilities
2,846

�
1,239

Other assets and long-term liabilities
(9,670
)
�
(3,618
)
Net cash provided from (used in) operating activities
10,259

�
9,819

Investing from continuing and discontinued operations:
�
�
�
Expenditures for property, plant and equipment
(10,324
)
�
(9,601
)
Proceeds from the sale of assets
904

�
3,087

Business acquisitions, net of cash
(6,698
)
�
(51,322
)
Net cash provided from (used in) investing activities
(16,118
)
�
(57,836
)
Financing from continuing and discontinued operations:
�
�
�
Cash dividends paid
(5,962
)
�
(5,915
)
Increase (decrease) in short-term debt
870

�
3,294

Borrowings on long-term debt
27,500

�
457,000

Repayments on long-term debt including current portion
(10,915
)
�
(444,649
)
Payment of debt issuance costs


�
(1,731
)
Noncontrolling interests' contributions (distributions)
(1,750
)
�


Issuances of stock, common and treasury
71

�
211

Purchases of treasury stock
(3,335
)
�
(1,116
)
Net cash provided from (used in) financing activities
6,479

�
7,094

Effect of exchange rate changes on cash
(4,004
)
�
1,672

Net increase (decrease) in cash and cash equivalents
(3,384
)
�
(39,251
)
Cash and cash equivalents at beginning of period
135,493

�
134,054

Cash and cash equivalents at end of period
$
132,109

�
$
94,803






A. SCHULMAN, INC.
Reconciliation of GAAP and Non-GAAP Financial Measures
Three months ended November 30, 2014
�
Cost of Sales
�
Gross margin
�
SG&A
�
Restructuring expense
�
Operating income
�
Operating income per pound
�
Income tax expense (benefit)
�
Net income attributable to A. Schulman, Inc.
�
Diluted EPS
�
�
(In thousands, except for %'s, per pound and per share data)
As reported
�
$
528,209

�
14.1
%
�
$
60,547

�
$
5,219

�
$
21,078

�
$
0.039

�
$
4,486

�
$
13,158

�
$
0.45

Certain items:
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Asset write-downs (1)
�


�
�
�


�


�


�
�
�


�


�


Costs related to acquisitions and integrations (2)
�
(50
)
�
�
�
(1,003
)
�


�
1,053

�
�
�
77

�
976

�
0.03

Restructuring and related costs (3)
�


�
�
�
(360
)
�
(5,219
)
�
5,579

�
�
�
1,483

�
4,096

�
0.14

Inventory step-up (4)
�
(341
)
�
�
�


�


�
341

�
�
�
102

�
239

�
0.01

Tax benefits (charges)
�


�
�
�


�


�


�
�
�


�


�


Loss (income) from discontinued operations
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
10

�


Total certain items
�
(391
)
�
0.1
%
�
(1,363
)
�
(5,219
)
�
6,973

�
0.013

�
1,662

�
5,321

�
0.18

As Adjusted
�
$
527,818

�
14.2
%
�
$
59,184

�
$


�
$
28,051

�
$
0.052

�
$
6,148

�
$
18,479

�
$
0.63

�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Percentage of Revenue
�
�
�
�
�
9.6
%
�
�
�
4.6
%
�
�
�
�
�
3.0
%
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Three months ended November 30, 2013
�
Cost of Sales
�
Gross margin
�
SG&A
�
Restructuring expense
�
Operating income
�
Operating income per pound
�
Income tax expense (benefit)
�
Net income attributable to A. Schulman, Inc.
�
Diluted EPS
�
�
(In thousands, except for %'s, per pound and per share data)
As reported
�
$
506,289

�
13.5
%
�
$
57,398

�
$
1,778

�
$
19,932

�
$
0.040

�
$
4,568

�
$
15,071

�
$
0.52

Certain items:
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Asset write-downs (1)
�
(108
)
�
�
�


�


�
108

�
�
�
1

�
107

�


Costs related to acquisitions and integrations (2)
�


�
�
�
(635
)
�


�
635

�
�
�
89

�
546

�
0.02

Restructuring and related costs (3)
�
(363
)
�
�
�
(1,231
)
�
(1,778
)
�
3,372

�
�
�
322

�
3,340

�
0.11

Inventory step-up (4)
�
(417
)
�
�
�


�


�
417

�
�
�
98

�
319

�
0.01

Loss (income) from discontinued operations
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
(2,655
)
�
(0.09
)
Total certain items
�
(888
)
�
0.2
%
�
(1,866
)
�
(1,778
)
�
4,532

�
0.009

�
510

�
1,657

�
0.05

As Adjusted
�
$
505,401

�
13.7
%
�
$
55,532

�
$


�
$
24,464

�
$
0.049

�
$
5,078

�
$
16,728

�
$
0.57

�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Percentage of Revenue
�
�
�
�
�
9.5
%
�
�
�
4.2
%
�
�
�
�
�
2.9
%
�
�
1 - Asset write-downs primarily relate to asset impairments and accelerated depreciation.
2 - Costs related to acquisitions and integrations primarily include third party professional, legal and other expenses associated with successful and unsuccessful full or partial acquisition and divestiture/dissolution transactions. Additionally, costs related to acquisitions include certain employee-related expenses such as acquisition-related travel and integration costs.
3 - Restructuring related costs include items such as employee severance charges, lease termination charges, curtailment gains/losses, other employee termination costs and charges related to the reorganization of the legal entity structure.
4 - Inventory step-up costs include the adjustment for fair value of inventory acquired as a result of acquisition purchase accounting.




A. SCHULMAN, INC.
SUPPLEMENTAL SEGMENT INFORMATION
�
�
Net Sales
�
Pounds Sold
�
�
Three months ended November 30,
EMEA
�
2014
�
2013
�
$ Change
�
% Change
�
2014
�
2013
�
Lbs. Change
�
% Change
�
�
(In thousands, except for %'s)
Custom Performance Color
�
$
33,459

�
$
36,073

�
$
(2,614
)
�
(7.2
)%
�
11,509

�
12,331

�
(822
)
�
(6.7
)%
Masterbatch Solutions
�
116,400

�
108,901

�
7,499

�
6.9
�%
�
97,330

�
85,340

�
11,990

�
14.0
�%
Engineered Plastics
�
109,273

�
122,216

�
(12,943
)
�
(10.6
)%
�
71,690

�
75,157

�
(3,467
)
�
(4.6
)%
Specialty powders
�
41,450

�
47,040

�
(5,590
)
�
(11.9
)%
�
43,443

�
46,998

�
(3,555
)
�
(7.6
)%
Distribution Services
�
70,609

�
78,232

�
(7,623
)
�
(9.7
)%
�
92,486

�
92,394

�
92

�
0.1
�%
Total EMEA
�
$
371,191

�
$
392,462

�
$
(21,271
)
�
(5.4
)%
�
316,458

�
312,220

�
4,238

�
1.4
�%
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Net Sales
�
Pounds Sold
�
�
Three months ended November 30,
Americas
�
2014
�
2013
�
$ Change
�
% Change
�
2014
�
2013
�
Lbs. Change
�
% Change
�
�
(In thousands, except for %'s)
Custom Performance Color
�
$
11,388

�
$
8,166

�
$
3,222

�
39.5
�%
�
3,869

�
2,604

�
1,265

�
48.6
�%
Masterbatch Solutions
�
65,291

�
53,476

�
11,815

�
22.1
�%
�
73,143

�
62,528

�
10,615

�
17.0
�%
Engineered Plastics
�
59,967

�
37,084

�
22,883

�
61.7
�%
�
38,769

�
25,605

�
13,164

�
51.4
�%
Specialty powders
�
37,135

�
36,657

�
478

�
1.3
�%
�
52,968

�
52,122

�
846

�
1.6
�%
Distribution Services
�
17,107

�
11,144

�
5,963

�
53.5
�%
�
17,159

�
12,375

�
4,784

�
38.7
�%
Total Americas
�
$
190,888

�
$
146,527

�
$
44,361

�
30.3
�%
�
185,908

�
155,234

�
30,674

�
19.8
�%
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Net Sales
�
Pounds Sold
�
�
Three months ended November 30,
APAC
�
2014
�
2013
�
$ Change
�
% Change
�
2014
�
2013
�
Lbs. Change
�
% Change
�
�
(In thousands, except for %'s)
Custom Performance Color
�
$
3,231

�
$
702

�
$
2,529

�
360.3
�%
�
2,371

�
533

�
1,838

�
344.8
�%
Masterbatch Solutions
�
20,339

�
20,526

�
(187
)
�
(0.9
)%
�
18,853

�
17,544

�
1,309

�
7.5
�%
Engineered Plastics
�
25,276

�
21,398

�
3,878

�
18.1
�%
�
16,905

�
13,580

�
3,325

�
24.5
�%
Specialty powders
�
3,772

�
3,250

�
522

�
16.1
�%
�
3,691

�
2,962

�
729

�
24.6
�%
Distribution Services
�
356

�
532

�
(176
)
�
(33.1
)%
�
410

�
643

�
(233
)
�
(36.2
)%
Total APAC
�
$
52,974

�
$
46,408

�
$
6,566

�
14.1
�%
�
42,230

�
35,262

�
6,968

�
19.8
�%
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Net Sales
�
Pounds Sold
�
�
Three months ended November 30,
Consolidated
�
2014
�
2013
�
$ Change
�
% Change
�
2014
�
2013
�
Lbs. Change
�
% Change
�
�
(In thousands, except for %'s)
Custom Performance Color
�
$
48,078

�
$
44,941

�
$
3,137

�
7.0
�%
�
17,749

�
15,468

�
2,281

�
14.7
�%
Masterbatch Solutions
�
202,030

�
182,903

�
19,127

�
10.5
�%
�
189,326

�
165,412

�
23,914

�
14.5
�%
Engineered Plastics
�
194,516

�
180,698

�
13,818

�
7.6
�%
�
127,364

�
114,342

�
13,022

�
11.4
�%
Specialty powders
�
82,357

�
86,947

�
(4,590
)
�
(5.3
)%
�
100,102

�
102,082

�
(1,980
)
�
(1.9
)%
Distribution Services
�
88,072

�
89,908

�
(1,836
)
�
(2.0
)%
�
110,055

�
105,412

�
4,643

�
4.4
�%
Total Consolidated
�
$
615,053

�
$
585,397

�
$
29,656

�
5.1
�%
�
544,596

�
502,716

�
41,880

�
8.3
�%






A. SCHULMAN, INC.
SUPPLEMENTAL SEGMENT INFORMATION
(continued)
�
�
Three months ended November 30,
�
�
2014
�
2013
�
�
Unaudited
(In thousands, except for %'s)
Segment gross profit
�
�
�
�
EMEA
�
$
49,706

�
$
51,940

Americas
�
30,279

�
21,433

APAC
�
7,250

�
6,623

�����Total segment gross profit
�
87,235

�
79,996

Inventory step-up
�
(341
)
�
(417
)
Accelerated depreciation and restructuring related
�


�
(471
)
Costs related to acquisitions and integrations
�
(50
)
�


�����Total gross profit
�
$
86,844

�
$
79,108

�
�
�
�
�
Segment operating income
�
�
�
�
EMEA
�
$
20,039

�
$
20,417

Americas
�
11,988

�
7,364

APAC
�
3,508

�
3,366

Total segment operating income
�
35,535

�
31,147

Corporate
�
(7,484
)
�
(6,683
)
Costs related to acquisitions and integrations
�
(1,053
)
�
(635
)
Restructuring and related costs
�
(5,579
)
�
(3,372
)
Accelerated depreciation
�


�
(108
)
Inventory step-up
�
(341
)
�
(417
)
Operating income
�
21,078

�
19,932

Interest expense, net
�
(2,264
)
�
(2,129
)
Foreign currency transaction gains (losses)
�
(1,099
)
�
(682
)
Other income (expense), net
�
159

�
78

Income from continuing operations before taxes
�
$
17,874

�
$
17,199

�
�
�
�
�
Capacity utilization
�
�
�
�
EMEA
�
87
%
�
87
%
Americas
�
67
%
�
67
%
APAC
�
65
%
�
67
%
Worldwide
�
76
%
�
77
%



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