Profit Warning caused mostly by “Margin Compression” in Europe
Plastics compounder and distributor A. Schulman, Inc. (Acron, OH, United States) has lowered its earnings guidance for FY2017 (ending 31. August 2017) to an adjusted net income of USD 1.60 to 1.70 per diluted share, down from a range of USD 2.08 to 2.18 published in October last year.
A. Schulman is quoting “margin compression in the Company’s European business as well as weakened operating results from previous forecats in certain other regions.” Adjusted EBITDA is now expected to be in the USD 200 to 204 mn. Compared to the initial guidance, based on an EUR/USD x-rate of 1.13, negative foreign currency effects are expected to reduce net income by USD 0.12 per share and adjusted EBITDA by USD 6 mn, respectively.
Source: A. Schulman press release
HGE / DCG – 31.07.2017