Fairlawn polymer company A. Schulman Inc. reported a large fourth-quarter loss and lower revenue, while full-year earnings came in higher than previously anticipated.
A. Schulman said it lost $385.1 million, or $13.12 per share, on revenue of $604.6 million. The loss was attributed largely to charges related to its 2015 Citadel acquisition; Schulman is in litigation over part of the purchase. Revenue a year ago was $674 million.
Adjusted earnings for the fourth quarter showed a profit of $13.7 million, or 47 cents per share.
The company reported results after the stock market closed Wednesday.
For the year, the company said it lost $364.6 million, or $12.44 per share, on revenue of $2.5 billion. Revenue was up from $2.4 billion a year ago.
Adjusted income for the year was $61.2 million, or $2.08 per share. That was higher than A. Schulman’s previous guidance of $1.90 to $1.95 per share.
“As I’ve said previously, the board is not satisfied with the company’s performance and the pace of execution throughout fiscal 2016,” Joseph Gingo, chairman, chief executive officer and president, said in a news release.
“Over the past two months as chief executive officer, I’ve led our internal team and our outside advisors in a thorough review of every aspect of our business in order to verify our market intelligence, refine our vision and improve our execution.
“I believe we have a clear and realistic path forward to restore and reset A. Schulman’s operational and financial performance worldwide to the sustainable levels our shareholders previously realized and rightfully expect of us.”
The company said it will outline growth and profitability objectives at its upcoming Investor Day on Nov. 16 in New York City.
For fiscal 2017, A. Schulman said it expects to have adjusted net income of $2.08 to $2.18 per share.
The Fairlawn maker of resins, compounds and related products in August cut its adjusted earnings guidance for the year to $1.90 to $1.95 a share, down from previous guidance of $2.40 to $2.45 a share. Share prices plunged on the news; they have since bounced back.
Shortly after the surprise guidance announcement there was a major executive shake-up, starting with the departure of Bernard Rzepka as CEO and the rehiring of Gingo, the 71-year-old board chairman, as chief executive. Gingo was hired as A. Schulman’s CEO in 2008, with Rzepka, a longtime A. Schulman employee, taking the reins in 2015.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.