Plastics Company A. Schulman Issues Profit Warning, Citing Weakness In U.S. And Europe Markets

Plastics company A. Schulman inc. on Thursday issued a profit warning for the full year, citing deteriorating market conditions in its major markets, the U.S. and Europe. The company said it now expects full-year EPS to range from $1.90 to $1.95, well below its previous forecast of $2.40 to $2.45. The FactSet consensus is for EPS of $2.42. "At the beginning of the quarter, our key end-markets in the U.S. and Europe did not present notable headwinds; however, as the quarter progressed we saw double-digit volume contraction," Chief Executive Bernard Rzepka said in a statement. The weakness has continued into August, he said. At the same time, volatility in raw materials markets caused by the weak oil price has made customers cautious and crimped orders, he said. Shares were halted premarket for the news announcement, but are down 2.2% in the year to date, while the S&P 500 has gained 6.4%.