Published:
A. Schulman Takes Further Actions to Alleviate Effects of Rising Costs
AKRON, Ohio, July 18 /PRNewswire-FirstCall/ -- A. Schulman, Inc.
(Nasdaq: SHLM) announced today that it has taken further steps to help offset
rapidly rising raw material, energy, transportation and supplier costs in its
North American businesses.
The Company will implement price increases of up to 10 percent for
products of its Masterbatch division and up to 20 percent for its Engineered
Plastics division, effective August 1, 2008, or as contracts allow. These
price actions are in addition to the price increases of up to 20 percent that
were announced June 13, 2008 for both divisions.
For its Distribution division, A. Schulman also announced price increases
of up to 10 percent, effective August 1, 2008, as well as revisions to its
payment and shipment terms, effective with shipments of July 15, 2008, or as
contracts allow. These changes in terms will not affect customers of the
Masterbatch and Engineered Plastics divisions.
"We are doing all we can to alleviate the effects of the continuing and
unprecedented increases in raw material, energy and shipping costs, and the
subsequent pricing pressure we are seeing from suppliers," said Joseph M.
Gingo, Chairman, President and Chief Executive Officer. "These actions,
combined with our ongoing focus to improve productivity and efficiency
throughout our global operations, will strengthen our position in the
marketplace and enhance our ability to deliver greater value to our customers
and stockholders."
About A. Schulman
Headquartered inAkron, 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 2,200 people and has 16 manufacturing
facilities inNorth America andEurope (includingAsia). Revenues for the
fiscal year ended August 31, 2007, were $1.8 billion. Additional information
about A. Schulman can be found at 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.
SOURCE A. Schulman, Inc.
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