AKRON, Ohio, June 13 /PRNewswire-FirstCall/ -- A. Schulman, Inc. (NASDAQ:SHLM) today announced price increases of up to 20 percent for its North American Masterbatch and Engineered Plastics divisions, effective June 16 and July 1, 2008, respectively, or as contracts allow. These price actions are driven primarily by rapid, significant and sustained increases in key raw material, energy, logistical and other associated costs.
"Despite ongoing efforts to alleviate the effects of the extraordinary rise in raw material, energy and transportation costs, we have reached a point where the only reasonable course is to implement these price increases," said Joseph M. Gingo, Chairman, President and Chief Executive Officer. "This action is essential to sustaining the Company as a viable provider - one that remains committed to the industry and to bringing our customers high-quality, value-added products and services." Gingo added that the Company continues to achieve productivity improvements and has revamped its global purchasing and supply chain processes to reduce costs, improve efficiencies and better leverage its worldwide purchasing power. Additionally, management is focused on reducing working capital levels, revitalizing product development activities and implementing a global continuous improvement program.
"We will continue to drive our strategy with a strong sense of urgency to deliver greater value to our customers and stockholders," he said. "We firmly believe these efforts will restore our North American operations to profitability and strengthen our entire Company for long-term growth." About A. Schulman, Inc.
Headquartered in Akron, Ohio, A. Schulman is a leading international supplier of high-performance plastic compounds and resins. These materials are used in a variety of consumer, industrial, automotive and packaging applications. The Company employs about 2,400 people and has 16 manufacturing facilities in North America and Europe (including Asia). Revenues for the fiscal year ended August 31, 2007, were $1.8 billion. Additional information about A. Schulman can be found at http://www.aschulman.com/ .
Forward-Looking Statements Certain statements in this release may constitute forward-looking statements within the meaning of the Federal securities laws. These statements can be identified by the fact that they do not relate strictly to historic or current facts. They use 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. These forward-looking statements are based on currently available information, but are subject to a variety of uncertainties, unknown risks and other factors concerning the Company's operations and business environment, which are difficult to predict and are beyond the control of the Company. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect the Company's 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
Company's major product markets;
-- Fluctuations in the value of currencies in major areas where the
Company operates, including the U.S. dollar, euro, U.K. pound sterling,
Canadian dollar, Mexican peso, Chinese yuan and Indonesian rupiah;
-- Fluctuations in the prices of sources of energy or plastic resins and
other raw materials;
-- Changes in customer demand and requirements;
-- Escalation in the cost of providing employee health care;
-- The outcome of any legal claims known or unknown;
-- The performance of the North American auto market; and
-- The North American recessionary economy. Additional risk factors that could affect the Company's performance are set forth in the Company's Annual Report on Form 10-K. 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 Company's business, financial condition and results of operations.
This release contains time-sensitive information that reflects management's best analysis only as of the date of this release. A. Schulman does not undertake an obligation to publicly update or revise any forward- looking statements to reflect new events, information or circumstances, or otherwise. Further information concerning issues that could materially affect financial performance related to forward-looking statements can be found in A. Schulman's periodic filings with the Securities and Exchange Commission. DATASOURCE: A. Schulman Inc.
CONTACT: Paul DeSantis, CFO and Treasurer of A. Schulman Inc., +1-330-666-3751 Web Site: http://www.aschulman.com/
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