a leaner and meaner plastics maker
Heavy dependence on oil
Considering the current price of the base commodity, the base raw material may not be a good situation ---crude oil.
In fact, this dependence has had a negative impact on almost all chemical or plastic manufacturers, ranging from industry giants such as Dow chemistry, DuPont and BASF to smaller ones such as Eastman chemistry and West Lake chemistry
Many people have done admirable work to offset these rising costs by raising prices.
However, few people can provide close
Long-term growth in Akron, Ohiobased A.
Provided by Shulman.
According to the quantitative model adopted by Forbes growth investors, SHLM expects net income to grow by more than 50% in 2008.
So this is a stock that is worth a long, careful look, and could take a few dollars.
SHLM manufacturing high-
Plastic resin and compound.
Using advanced enhancement methods, the company converts basic resin into raw materials that customers can use to produce all products from pens to artificial lawns. Almost three-
Four of the sales in fiscal 2007 came from outside North America.
SHLM CUCs products are divided into four categories: 35% of sales in fiscal 2007 come from color and additive concentrates.
The resin designed in this category gives the plastic specific color or physical properties such as conductivity and flexibility. --
30% of sales come from Polyolefine.
The category includes polypropylene and polyethylene resin and compounds used to make the final product, such as interior accessories for cars, toys, small household appliances, sporting goods and office supplies. --
Engineering compounds that produce 24% of sales maintain specific properties such as chemical/heat resistance, conductivity, and high strengthto-weight ratios. --
PVC or PVC categories that produce 4% of sales make PVC of various grades for automotive, furniture, construction and consumer applications. --
The remaining revenue for fiscal 2007 comes from the sales and charging services of other products, such as the handling of customer feesOwn material.
SHLM is recovering from a tough fiscal year.
Due to weak demand, unfavorable sales mix and rising prices failing to keep up with rising raw material costs, North America and Europe\'s expectations for improved results have not been met.
Income is $22.
82 cents per share, down 6 million, well below $32. $6 million or $1.
The company earned 07 per share in the previous year.
Most of the losses occurred in the first half of the fiscal year.
Net sales climbed 11.
4%, but net income plummeted by 75.
4% due to a 300 basis point contraction in gross profit margin, there are only 11 basis points. 42%.
That caused $13 in operating losses.
7 million profits in North America and Europe fell by 20% to $32. 3 million.
Management has launched several strategic initiatives to get profitability back on track.
Most of these efforts are focused on improving profitability sheets in North America.
To reduce costs, the business unit was reorganized.
SHLM reduces head count, reduces excess capacity, and reduces overall levels of sales, general and administrative costs.
These actions have significantly improved financial performance in the second half of fiscal 2007.
Net sales increased by only 9.
7%, but the gross profit margin rebounded from 94 basis points in the first half to 12 basis points.
36%, despite the high cost of raw materials.
Operating losses in North America are limited to $5.
5 million, European operating profit growth of 5.
Between $ 7% and $41 million.
Net income rose 13 in the second half of this year.
4% from the previous period.
Despite these improvements, SHLM is not out of the woods yet.
The North American business is still unprofitable, and a sustained rise in raw material costs may weaken its net income forecast.
In addition, the auto market (
Second largest of SHLM)
Still challenging.
Management guidance requires net income of $36 million for fiscal 2008over-
Annual growth of 59%.
A large part of this will come from an additional $10 million in savings expected from previous restructuring.
But it also reflects expectations for better demand in North America and Europe.
It is also worth noting that the new Invision products launched by SHLM in the fourth quarter have strong potential.
Invision is more than one
A layered extrusion product manufactured by a simplified manufacturing process.
It is cost competitive and has superior performance and is more eco-friendly than other paint/coated plastic and film materials.
Taesik pvc Yoon is senior stock analyst and deputy editor-in-chief of Forbes investor advisory institute, Forbes growth investor and Forbes special circumstances survey.
For more information about model portfolio holding and recent buying and
Considering the current price of the base commodity, the base raw material may not be a good situation ---crude oil.
In fact, this dependence has had a negative impact on almost all chemical or plastic manufacturers, ranging from industry giants such as Dow chemistry, DuPont and BASF to smaller ones such as Eastman chemistry and West Lake chemistry
Many people have done admirable work to offset these rising costs by raising prices.
However, few people can provide close
Long-term growth in Akron, Ohiobased A.
Provided by Shulman.
According to the quantitative model adopted by Forbes growth investors, SHLM expects net income to grow by more than 50% in 2008.
So this is a stock that is worth a long, careful look, and could take a few dollars.
SHLM manufacturing high-
Plastic resin and compound.
Using advanced enhancement methods, the company converts basic resin into raw materials that customers can use to produce all products from pens to artificial lawns. Almost three-
Four of the sales in fiscal 2007 came from outside North America.
SHLM CUCs products are divided into four categories: 35% of sales in fiscal 2007 come from color and additive concentrates.
The resin designed in this category gives the plastic specific color or physical properties such as conductivity and flexibility. --
30% of sales come from Polyolefine.
The category includes polypropylene and polyethylene resin and compounds used to make the final product, such as interior accessories for cars, toys, small household appliances, sporting goods and office supplies. --
Engineering compounds that produce 24% of sales maintain specific properties such as chemical/heat resistance, conductivity, and high strengthto-weight ratios. --
PVC or PVC categories that produce 4% of sales make PVC of various grades for automotive, furniture, construction and consumer applications. --
The remaining revenue for fiscal 2007 comes from the sales and charging services of other products, such as the handling of customer feesOwn material.
SHLM is recovering from a tough fiscal year.
Due to weak demand, unfavorable sales mix and rising prices failing to keep up with rising raw material costs, North America and Europe\'s expectations for improved results have not been met.
Income is $22.
82 cents per share, down 6 million, well below $32. $6 million or $1.
The company earned 07 per share in the previous year.
Most of the losses occurred in the first half of the fiscal year.
Net sales climbed 11.
4%, but net income plummeted by 75.
4% due to a 300 basis point contraction in gross profit margin, there are only 11 basis points. 42%.
That caused $13 in operating losses.
7 million profits in North America and Europe fell by 20% to $32. 3 million.
Management has launched several strategic initiatives to get profitability back on track.
Most of these efforts are focused on improving profitability sheets in North America.
To reduce costs, the business unit was reorganized.
SHLM reduces head count, reduces excess capacity, and reduces overall levels of sales, general and administrative costs.
These actions have significantly improved financial performance in the second half of fiscal 2007.
Net sales increased by only 9.
7%, but the gross profit margin rebounded from 94 basis points in the first half to 12 basis points.
36%, despite the high cost of raw materials.
Operating losses in North America are limited to $5.
5 million, European operating profit growth of 5.
Between $ 7% and $41 million.
Net income rose 13 in the second half of this year.
4% from the previous period.
Despite these improvements, SHLM is not out of the woods yet.
The North American business is still unprofitable, and a sustained rise in raw material costs may weaken its net income forecast.
In addition, the auto market (
Second largest of SHLM)
Still challenging.
Management guidance requires net income of $36 million for fiscal 2008over-
Annual growth of 59%.
A large part of this will come from an additional $10 million in savings expected from previous restructuring.
But it also reflects expectations for better demand in North America and Europe.
It is also worth noting that the new Invision products launched by SHLM in the fourth quarter have strong potential.
Invision is more than one
A layered extrusion product manufactured by a simplified manufacturing process.
It is cost competitive and has superior performance and is more eco-friendly than other paint/coated plastic and film materials.
Taesik pvc Yoon is senior stock analyst and deputy editor-in-chief of Forbes investor advisory institute, Forbes growth investor and Forbes special circumstances survey.
For more information about model portfolio holding and recent buying and
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