A. Schulman Expects Positive Q4/98 Results; Acquires Italian Distributor

A. Schulman, Inc. announced that it expects financial results for its fiscal fourth quarter that ended August 31, 1998 — which will be released on October 20 — to meet or exceed analysts' estimates of $.40 per share. The company earned $0.42 per share in the fourth quarter of fiscal 1997.

"Currently, our order backlog in Europe is good," said Terry L. Haines, president and CEO of A. Schulman, an Akron, Ohio-based international supplier of high-performance plastic compounds and resins used in a variety of consumer, industrial, automotive and packaging applications. "In addition, stabilization of the U.S. dollar compared to European currencies where we operate should mitigate the adverse currency translation effects of the past year."

In North America, current order levels have improved after a decline resulting from the effects of the General Motors strike. On September 18, A. Schulman purchased the assets of Isopolymer, Inc. of Milan, Italy, a distributor of Schulman products and a merchant of plastic resins and compounds to the Italian market. Terms of the transaction were not disclosed. Annual sales of this unit are expected to be approximately $30 million. The acquisition is expected to be accretive to earnings in the first year, although the effect on consolidated earnings will not be material. "Isopolymer is a strategic acquisition that will offer A. Schulman a valuable outlet for the sale of products into the Italian market, currently the second largest thermoplastic market in Europe," Haines commented.