A. Schulman Announces Closing of Invision Sheet Manufacturing Operation at Sharon...
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A. Schulman Announces Closing of Invision Sheet Manufacturing Operation at
Sharon Center, Ohio Plant
AKRON, Ohio, June 29 /PRNewswire-FirstCall/ -- A. Schulman, Inc. (Nasdaq:
SHLM) today announced that on Thursday, June 25, its board of directors
approved a plan to cease the operation of its Invision sheet production line
at its Sharon Center, Ohio manufacturing facility, by the end of the fourth
quarter of fiscal year 2009. A total of four positions will be eliminated at
the plant related to Invision sheet production.
A. Schulman had been seeking a strategic partner or acquirer for its Invision
sheet business and identified a select group of interested parties, but could
not reach an agreement that was satisfactory to the Company. The Company will
continue to offer Invision resins, technologies and services to sheet and
thermoforming customers through its North American Engineered Plastics
business, but will no longer manufacture Invision sheet. A core group will be
maintained to support sheet color matching, new product development, process
development, and licensing for the ongoing portion of the business.
The Company expects to record non-cash charges of approximately $6.0 million
to $8.0 million associated with the production equipment for the Invision
sheet business and less than $0.1 million in cash charges for termination
benefits and other employee costs in the fourth quarter of fiscal 2009.
Annual savings are expected to be approximately $2.0 million to $3.0 million
beginning in fiscal 2010.
"In seeking a strategic partner, we evaluated the market and determined there
is significant continued interest from our customers for Invision resin and
its wide range of sheet and thermoforming applications which serve a variety
of markets," said Joseph M. Gingo, Chairman, President and Chief Executive
Officer of A. Schulman. "However, much of Invision's potential falls outside
of A. Schulman's manufacturing expertise in custom compounding, which is why
we were seeking a partner with sheet manufacturing and service capabilities in
those markets to help develop the business. Without such a partner, we cannot
justify continuing sheet production, which has been a drain on our
profitability. We continue to focus our efforts on generating long-term
profitable growth and shareholder value by supplying high-value products to a
variety of niche markets where we have expertise."
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 2,000 people and has 16 manufacturing facilities in
North America, Europe and Asia. Revenues for the fiscal year ended August 31,
2008, were $1.98 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 global auto market;
-- The global financial market turbulence; and
-- The global or regional economic slowdown or recession.
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.
Paul DeSantis, CFO and Treasurer of A. Schulman Inc., +1-330-666-3751
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