OREANDA-NEWS. A. Schulman, Inc. (Nasdaq-GS: SHLM), a leading international supplier of high-performance plastic compounds, composites, powders and resins, today announced that the Company has lowered its full-year fiscal 2016 adjusted earnings guidance to be in the range of $2.40 to $2.45 per diluted share, on a preliminary basis.

"We are extremely disappointed with our preliminary view of second quarter results which is expected to yield adjusted earnings of approximately $0.25 to $0.30 per share on a diluted basis," stated Bernard Rzepka, President and Chief Executive Officer. "First, the business teams have been focused on correcting the previously disclosed Lucent quality matter, which again had a negative financial impact and the teams have been diverted away from planned growth initiatives. While we are making progress in resolving this issue, we anticipate the financial impact from Lucent to continue into the second half.  Second, in both our Citadel and legacy businesses we experienced weakness driven by the lower oil price environment which impacted sales volumes in some markets we serve.  Although the weakness will continue until the global oil environment recovers, we believe that the demand for our products has stabilized albeit at a reduced level. Finally, we were negatively impacted by the continuing global economic slowdown. While we executed additional cost out actions in the first half, these savings were not sufficient to offset the above-mentioned factors."

Mr. Rzepka noted that the Company has devoted additional resources toward both accelerating the recognition of synergy and restructuring benefits, as well as broadening the scope of the "Manufacturing for Success" productivity program which will benefit the second half of the fiscal year.  Historically, the Company's second half has generated stronger earnings than the first half of its fiscal year, and this year it will be more pronounced given the timing of acquisition related synergies including plant closures.  While the long-term value of the Citadel acquisition remains intact, the near term impact of the Lucent quality issue and the current oil price climate will be challenging to overcome, and therefore the Company does not anticipate the acquisition to be accretive until fiscal 2017.

When A. Schulman releases its second-quarter results for fiscal 2016 after market close on April 5, 2016, the Company will provide additional insight into the factors impacting its near-term results, an update on Lucent and the Company's legal options related to the Citadel acquisition.

About A. Schulman, Inc.
A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio. Since 1928, the Company has been providing innovative solutions to meet its customers' demanding requirements. The Company's customers span a wide range of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others. The Company employs approximately 5,000 people and has 58 manufacturing facilities globally. A. Schulman reported net sales of approximately $2.4 billion for the fiscal year ended August 31, 2015.