A. Schulman Shares Slide 16% After Company Issues Profit Warning For 2017

Shares of plastics company A. Schulman Inc. slid 16% Thursday, after the company lowered its full-year adjusted per-share earnings guidance to reflect pressure on margins in Europe and weak results in other regions. The company is now expecting full-year adjusted EPS of $1.60 to $1.70, down from a prior range of $2.08 to $2.18. "While our volumes in Europe remain on track with our expectations, we are incurring significant margin pressure in the region due to the magnitude and timing of raw material cost increases," Chief Executive Joseph M. Gingo said in a statement. "This compression compounds the macroeconomic headwinds and previously disclosed operational challenges thus making our full-year guidance unattainable, despite the continued progress we are making in this reset year." Gingo said the company is working address raw material costs, but that there is usually a lag in its ability to recover them. The executive expects margin recovery to build as it heads into fiscal 2018. Shares are down 23% in 2017, while the S&P 500 has gained almost 11%.