<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
/x/ Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended May 31, 2000 or
/ / Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ___________ to ____________
Commission file number: 0-7459
-------
A. Schulman, Inc.
------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 34-0514850
-------------------------------- ---------------------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
3550 West Market Street, Akron, Ohio 44333
-------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(330) 666-3751
------------------------------------------------------------------------------
(Registrant's Telephone Number, including Area Code)
------------------------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
----- -----
Number of common shares outstanding as of June 30, 2000 - 29,498,222
<PAGE>
A. SCHULMAN, INC.
STATEMENT OF CONSOLIDATED NET INCOME
(In Thousands except per share data)
<TABLE>
<CAPTION>
For the three months ended For the nine months ended
------------------------------ -----------------------------
May 31, May 31, May 31, May 31,
2000 1999 2000 1999
--------- --------- --------- ---------
Unaudited Unaudited
--------- ---------
<S> <C> <C> <C> <C>
Net sales $ 275,265 $ 250,450 $ 797,038 $ 744,294
Interest and other income (Note 6) 915 501 5,943 2,263
--------- --------- --------- ---------
276,180 250,951 802,981 746,557
--------- --------- --------- ---------
Cost and expenses:
Cost of goods sold 232,679 205,186 666,644 610,088
Selling, general and
administrative expense 25,690 26,127 79,210 78,357
Interest expense 1,608 914 4,666 2,538
Foreign currency transaction
losses (gain) (153) (109) (34) 613
Minority interest 466 558 1,426 1,260
--------- --------- --------- ---------
260,290 232,676 751,912 692,856
--------- --------- --------- ---------
Income before taxes 15,890 18,275 51,069 53,701
Provision for income taxes 6,538 6,978 20,041 20,946
--------- --------- --------- ---------
Net income 9,352 11,297 31,028 32,755
Less: Preferred stock dividends (13) (13) (40) (40)
--------- --------- --------- ---------
Net income applicable to
common stock $ 9,339 $ 11,284 $ 30,988 $ 32,715
========= ========= ========= =========
Weighted average number of
shares outstanding:
Basic 29,915 31,286 30,489 31,852
Diluted 29,915 31,286 30,489 31,860
Basic and diluted earnings per
common share (Note 6) $ 0.32 $ 0.36 $ 1.02 $ 1.03
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
-2-
<PAGE>
A. SCHULMAN, INC.
CONSOLIDATED BALANCE SHEET
(In Thousands)
<TABLE>
<CAPTION>
May 31, August 31,
2000 1999
-------- ----------
Assets Unaudited
---------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 37,629 $ 56,836
Accounts receivable, less allowance
for doubtful accounts of $5,063 at
May 31, 2000 and $3,678 at
August 31, 1999 185,154 159,840
Inventories, average cost or market,
whichever is lower 184,805 171,454
Prepaids, including tax effect of
temporary differences 21,518 19,966
-------- --------
Total current assets 429,106 408,096
Other assets:
Cash surrender value of life insurance 486 484
Deferred charges, etc., including tax effect
of temporary differences 18,988 22,604
-------- --------
19,474 23,088
Property, plant and equipment, at cost:
Land and improvements 9,497 9,982
Buildings and leasehold improvements 76,287 78,038
Machinery and equipment 226,300 228,803
Furniture and fixtures 23,643 24,162
Construction in progress 10,513 7,838
-------- --------
346,240 348,823
Accumulated depreciation and investment grants
of $992 at May 31, 2000 and
$230 at August 31, 1999 192,478 188,480
-------- --------
153,762 160,343
-------- --------
$602,342 $591,527
======== ========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
-3-
<PAGE>
A. SCHULMAN, INC.
CONSOLIDATED BALANCE SHEET
(In Thousands)
<TABLE>
<CAPTION>
May 31, August 31,
2000 1999
--------- ----------
Liabilities and Stockholders' Equity Unaudited
---------
<S> <C> <C>
Current liabilities:
Notes payable $ 6,200 $ 10,721
Current portion of long-term debt 275 -
Accounts payable 79,363 64,402
U.S. and foreign income taxes payable 6,014 6,721
Accrued payrolls, taxes and related benefits 21,260 19,180
Other accrued liabilities 20,684 16,792
-------- --------
Total current liabilities 133,796 117,816
Long-term debt 81,730 65,000
Other long-term liabilities 38,437 37,696
Deferred income taxes 10,438 11,375
Minority interest 4,219 3,394
Stockholders' equity:
Preferred stock, 5% cumulative, $100
par value, authorized, issued and
outstanding - 10,567 shares at May 31,
2000 and 10,689 shares at August 31, 1999 1,056 1,069
Special stock 1,000,000 shares authorized
none outstanding - -
Common stock, $1 par value
Authorized - 75,000,000 shares
Issued - 38,381,017 shares at May 31,
2000 and August 31, 1999 38,381 38,381
Other capital 46,694 46,694
Accumulated other comprehensive income (40,082) (17,191)
Retained earnings 446,706 427,880
Treasury stock, at cost, 8,605,795, shares at May 31,
2000 & 7,250,862 shares at August 31, 1999 (157,225) (138,291)
Unearned stock grant compensation (1,808) (2,296)
-------- --------
Common stock equity 332,666 355,177
-------- --------
Total stockholders' equity 333,722 356,246
-------- --------
$602,342 $591,527
======== ========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
-4-
<PAGE>
A. SCHULMAN, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands)
<TABLE>
<CAPTION>
For the nine months ended,
--------------------------------
May 31, 2000 May 31, 1999
------------ ------------
Unaudited
---------
<S> <C> <C>
Provided from (used in) operations:
Net income $ 31,028 $ 32,755
Items not requiring the current use of cash:
Depreciation 16,895 15,988
Non-current deferred taxes (291) 378
Foreign pension and other deferred compensation 1,958 2,103
Postretirement benefit obligation 1,185 890
Changes in working capital:
Accounts receivable (45,280) (29,654)
Inventories (23,909) (7,018)
Prepaids (2,476) 2,615
Accounts payable 28,514 20,012
Income taxes (298) (1,478)
Accrued payrolls and other accrued liabilities 8,558 5,353
Changes in other assets and other
long-term liabilities 2,190 (5,581)
--------- ---------
Net cash provided from operating
activities 18,074 36,363
--------- ---------
Provided from (used in) investing activities:
Expenditures for property, plant and equipment (17,799) (28,554)
Disposals of property, plant and equipment 488 375
--------- ---------
Net cash used in investing activities (17,311) (28,179)
--------- ---------
Provided from (used in) financing activities:
Cash dividends paid (12,202) (11,638)
Notes payable (4,464) 11,176
Long-term debt 17,108 22,000
Minority interest 826 (90)
Purchase of preferred stock (12) -
Purchase of treasury stock (18,935) (32,838)
Foreign investment grants 889 -
--------- ---------
Net cash used in financing activities (16,790) (11,390)
--------- ---------
Effect of exchange rate changes on cash (3,180) (3,197)
--------- ---------
Net decrease in cash and cash equivalents (19,207) (6,403)
Cash and cash equivalents at beginning of period 56,836 60,766
--------- ---------
Cash and cash equivalents at end of period $ 37,629 $ 54,363
========= =========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
-5-
<PAGE>
A. SCHULMAN, INC.
FOOTNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) The results of operations for the nine months ended May 31, 2000 are not
necessarily indicative of the results expected for the year ended August
31, 2000.
(2) The interim financial statements furnished reflect all adjustments, which
are, in the opinion of management, necessary for a fair presentation of the
results of the interim period presented. All such adjustments are of a
normal recurring nature.
(3) All highly liquid investments purchased with a maturity of three months or
less are considered to be cash equivalents. Such investments amounted to
$18,780,000 at May 31, 2000 and $39,705,000 at August 31, 1999.
(4) A summary of the stockholders' equity section for the nine months ended May
31, 2000 and 1999 is as follows:
(In Thousands except per share data)
------------------------------------
<TABLE>
<CAPTION>
Accumulated Total
Other Unearned Compre-
Common Other Retained Comprehensive Stock Grant hensive
Stock Capital Earnings Income Compensation Income
----- ------- -------- ------ ------------ ------
<S> <C> <C> <C> <C> <C> <C>
Balance-September 1, 1999 $ 38,381 $46,694 $427,880 $(17,191) $(2,296)
Comprehensive income
Net Income 31,028
Foreign currency
translation loss (22,891)
Total Comprehensive
income $ 8,137
=======
Dividends paid or accrued:
Preferred (40)
Common, $.395 per share (12,162)
Amortization of
restricted stock 488
-------- ------- -------- -------- -------
Balance-May 31, 2000 $ 38,381 $46,694 $446,706 $(40,082) $(1,808)
======== ======= ======== ======== =======
Balance-September 1, 1998 $ 38,347 $45,778 $395,746 $ (8,917) $(1,994)
Comprehensive income
Net Income 32,755
Foreign currency
translation loss (11,265)
Total Comprehensive
income $21,490
=======
Dividends paid or accrued:
Preferred (40)
Common, $.365 per share (11,690)
Amortization of
restricted stock 480
-------- ------- -------- -------- -------
Balance-May 31, 1999 $ 38,347 $45,778 $416,771 $(20,182) $(1,514)
======== ======= ======== ======== =======
</TABLE>
(5) During the nine months ended May 31, 2000, the Company repurchased
1,355,000 shares of its common stock for $18,935,000. Subject to market
conditions, the Company intends to continue repurchasing its common stock
in 2000.
-6-
<PAGE>
(6) Other income for the nine months ended May 31, 2000, includes $3,900,000
in North America from consideration received due to the demutualization of
an insurance carrier and the settlement of an insurance claim resulting
from equipment problems at a facility in North America. Net income
includes $2,535,000 or $.07 per share related to these events.
(7) A summary of the other comprehensive income section for the three months
ended May 31, 2000 and 1999 and nine months ended May 31, 2000 and 1999 is
as follows:
<TABLE>
<CAPTION>
For the three months ended For the nine months ended
-------------------------- -------------------------
(In Thousands) May 31, May 31, May 31, May 31,
2000 1999 2000 1999
-------- -------- -------- --------
Unaudited Unaudited
--------- ---------
<S> <C> <C> <C> <C>
Net Income $ 9,352 $ 11,297 $ 31,028 $ 32,755
Other comprehensive income:
Foreign currency
translation adjustment (7,959) (9,152) (22,891) (11,265)
Unrealized investment loss,
net of tax of $61 116 - - -
-------- -------- -------- --------
Comprehensive income $ 1,509 $ 2,145 $ 8,137 $ 21,490
======== ======== ======== ========
</TABLE>
(8) The Company is engaged in the sale of plastic resins in various forms,
which are used, as raw materials by its customers. The Company operates in
two geographic business segments, North America and Europe. A
reconciliation of segment income to consolidated income before tax is
presented below.
-7-
<PAGE>
A. SCHULMAN, INC.
FOOTNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
(in thousands) North
America Europe Other Consolidated
------- ------ ----- ------------
Three months ended May 31, 2000
<S> <C> <C> <C> <C>
Sales to unaffiliated customers $116,806 $158,459 -- $ 275,265
-------- -------- ------- ---------
Gross Profit $ 15,195 $ 27,391 -- $ 42,586
-------- -------- ------- ---------
Operating income $ 2,404 $ 14,732 -- $ 17,136
Interest expense, net -- -- $(1,246) $ (1,246)
-------- -------- ------- ---------
Income before taxes $ 2,404 $ 14,732 $(1,246) $ 15,890
-------- -------- ------- ---------
Three months ended May 31, 1999
Sales to unaffiliated customers $110,996 $139,454 -- $ 250,450
-------- -------- ------- ---------
Gross Profit $ 18,322 $ 26,942 -- $ 45,264
-------- -------- ------- ---------
Operating income $ 4,606 $ 14,241 -- $ 18,847
Interest expense, net -- -- $ (572) $ (572)
-------- -------- ------- ---------
Income before taxes $ 4,606 $ 14,241 $ (572) $ 18,275
-------- -------- ------- ---------
Nine months ended May 31, 2000
Sales to unaffiliated customers $338,415 $458,623 -- $ 797,038
-------- -------- ------- ---------
Gross Profit $ 46,155 $ 84,239 -- $ 130,394
-------- -------- ------- ---------
Operating income (Note 6) $ 10,857 $ 43,692 -- $ 54,549
Interest expense, net -- -- $(3,480) $ (3,480)
-------- -------- ------- ---------
Income before taxes $ 10,857 $ 43,692 $(3,480) $ 51,069
-------- -------- ------- ---------
Nine months ended May 31, 1999
Sales to unaffiliated customers $318,193 $426,101 -- $ 744,294
-------- -------- ------- ---------
Gross Profit $ 53,375 $ 80,831 -- $ 134,206
-------- -------- ------- ---------
Operating income $ 14,763 $ 40,115 -- $ 54,878
Interest expense, net -- -- $(1,177) $ (1,177)
-------- -------- ------- ---------
Income before taxes $ 14,763 $ 40,115 $(1,177) $ 53,701
-------- -------- ------- ---------
</TABLE>
(9) The difference between basic and diluted weighted-average common shares
results from the assumed exercise of outstanding stock options and grants
of restricted stock, calculated using the treasury stock method.
-8-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MATERIAL CHANGES IN RESULTS OF OPERATIONS
-----------------------------------------
Net sales for the three months ended May 31, 2000 were $275.2 million,
an increase of 9.9% over sales of $250.5 million for the comparable period in
1999. For the nine month period, net sales increased $52.7 million or 7.1% over
the comparable period last year.
The translation effect of foreign currencies decreased sales by $18.6
million for the quarter and $53.9 million for the nine month period ended May
31, 2000.
Worldwide tonnage was up 0.1% for the quarter and 5.3% for the nine
months. Tonnage was up 2.6% in Europe and down 3.3% in North America for the
quarter and up 8.4% in Europe and 1.4% in North America for the nine month
period.
Gross margins on sales for the quarter were 15.5% compared with 18.1%
for the same quarter last year. Gross margins on sales for the nine months ended
May 31, 2000 were 16.4% compared with 18.0% for the same period last year. The
European segment margins were 17.3% compared with 19.3% for same three month
period 1999 and 18.3% compared with 19.0% for the nine months ended May 31,
1999. The North American segment margins were 13.0% compared with 16.5% for same
three month period in 1999 and 13.6% compared with 16.8% for the nine months
ended May 31, 1999. The decreases in margins are primarily due to a significant
increase in resin prices and competitive price pressures.
A comparison of net sales and gross margin by business segment for the
three month and nine month periods ended May 31, 2000 and May 31, 1999 is as
follows:
<TABLE>
<CAPTION>
(In Thousands) (In Thousands)
Three Months Ended Nine Months Ended
------------------ -----------------
May 31, May 31, May 31, May 31,
Sales 2000 1999 Increase 2000 1999 Increase
----- ---- ---- -------- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C>
Europe $158,459 $139,454 $19,005 $458,623 $426,101 $32,522
North America 116,806 110,996 5,810 338,415 318,193 20,222
------- ------- ------- -------- -------- -------
$275,265 $250,450 $24,815 $797,038 $744,294 $52,744
======== ======== ======= ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
(In Thousands) (In Thousands)
Three Months Ended Nine Months Ended
------------------ -----------------
May 31, May 31, Increase May 31, May 31, Increase
Gross Margin 2000 1999 (Decrease) 2000 1999 (Decrease)
------------ ---- ---- ---------- ---- ---- ----------
<S> <C> <C> <C> <C> <C> <C>
Europe $27,391 $26,942 $ 449 $ 84,239 $ 80,831 $3,408
North America 15,195 18,322 (3,127) 46,155 53,375 (7,220)
------- ------- ------- -------- -------- -------
$42,586 $45,264 $(2,678) $130,394 $134,206 $(3,812)
======= ======= ======== ======== ======== ========
</TABLE>
Selling, general and administrative expenses decreased $0.4 million or
1.7% for the quarter and increased $0.9 million or 1.1% for the nine month
period. The translation effect of foreign currencies decreased selling, general
and administrative expenses by $1.5 million for the quarter and $5.0 million for
the nine month period ended May 31, 2000. The nine month increase in North
America is attributable to higher compensation and the opening of new color and
product development centers in 1999. In Europe, expenses were higher due to
expansion of sales efforts in new and existing locations and costs of
implementation of ERP systems.
Interest expense increased in 2000 due to higher levels of borrowing
incurred for the Company's stock repurchase program and working capital
requirements. In addition, interest rates increased over the year ago period.
Foreign currency transaction losses for the nine month period ended
May 31, 1999 were primarily due to changes in the value of currencies, mainly
in Canada and Indonesia.
-9-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
Minority interest represents a 30% equity position of Mitsubishi
Chemical MKV Company in a partnership with the Company and a 35% equity position
of P.T. Prima Polycon in an Indonesian joint venture with the Company.
A comparison of operating and pre-tax income by business segment for
the three months and nine months ended May 31, 2000 and May 31, 1999 is as
follows:
<TABLE>
<CAPTION>
(In Thousands)
For the three months ended May 31,
2000 1999
------------------------------------------------ -------------------------------------------
Net Net
Operating Interest Pretax Operating Interest Pretax Increase
Income Expense Income Income Expense Income (Decrease)
--------- --------- --------- ---------- --------- ------- ----------
Income
------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Europe $14,732 86.0% $14,732 $14,241 75.6% $14,241 $491
N. America 2,404 14.0% 2,404 4,606 24.4% 4,606 (2,202)
Interest
exp., net ($1,246) (1,246) ($572) (572) (674)
--------- ------ --------- -------- -------- ------ ------- -------- --------
$17,136 100.0% ($1,246) $15,890 $18,847 100.0% ($572) $18,275 $(2,385)
======== ===== ========= ======== ======== ====== ======= ======== ========
</TABLE>
<TABLE>
<CAPTION>
For the nine months ended May 31,
2000 1999
------------------------------------------------ ------------------------------------------
Net Net
Operating Interest Pretax Operating Interest Pretax Increase
Income Expense Income Income Expense Income (Decrease)
--------- --------- --------- ---------- --------- ------- ----------
Income
------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Europe $43,692 80.1% $43,692 $40,115 73.1% $40,115 $ 3,577
N. America 10,857 19.9% 10,857 14,763 26.9% 14,763 (3,906)
(Note 6)
Interest
exp., net ($3,480) (3,480) ($1,177) (1,177) (2,303)
--------- ------ --------- -------- -------- ------ ------- -------- --------
$54,549 100.0% ($3,480) $51,069 $54,878 100.0% ($1,177) $53,701 ($2,632)
======== ===== ========= ======== ======== ====== ======= ======== ========
</TABLE>
Net income for the nine months ended May 31, 2000 includes $2,535,000
or $.07 per share from consideration received due to the demutualization of an
insurance carrier in North America and the settlement of an insurance claim
resulting from equipment problems at a North American facility.
The effective tax rate for the quarters ended May 31, 2000 and May 31,
1999 was 41.1% and 38.2% respectively. The effective tax rate for the nine
months ended May 31, 2000 and May 31, 1999 was 39.3% and 39.0% respectively. The
2000 rates were higher primarily because of a higher effective foreign tax rate
which includes adjustments relating to tax loss carry forwards in Indonesia.
The translation effect of foreign currencies decreased net income by
$1.0 million or $.03 per share for the quarter and $2.9 million or $.09 per
share for the nine month period.
Europe's operating income of $14.7 million for the quarter was up 3%
from the same period last year. For the nine month period, European operating
income was up $3.6 million or 9%. Capacity utilization in Europe was 91% for the
quarter and 87% for the nine month period. Profit margins were down from 19.3%
to 17.3% for the quarter due to the higher resin prices and competitive price
pressures.
-10-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
North American operating income for the quarter was $2.2 million, down
47.8% from the same period last year. For the nine month period, North American
operating income was down $7.8 million or 52.8%, excluding $3.9 million of
pre-tax income from the demutualization of an insurance carrier and an insurance
settlement resulting from an equipment problem at a North American facility.
North American capacity utilization for the quarter improved to 88% from 83%
last year, but gross profit margins declined from 16.5% to 13.0% due to higher
cost of plastic resins and competitive price pressures.
The European operations have a strong level of orders extending into
early fall. European economic conditions have improved throughout the fiscal
year, but gross profit margins are lower due to continuing competitive price
pressures. There has been some recent strengthening of the Euro, which should
reduce a portion of the adverse effect from translation.
Sales prices in North America have been increased and there were
positive impacts on margins near the end of our third quarter. We believe prices
of resins will level off by early fall and anticipate better margins in the
months ahead. Our order level in North America is reasonably good, but we have
noted some recent softening due to traditional seasonal slowing in automotive
business during the summer months.
MATERIAL CHANGES IN FINANCIAL CONDITION
---------------------------------------
As of May 31, 2000, the current ratio was 3.2:1 and working capital was
$295 million. Accounts receivable increased $25.3 million at May 31, 2000 from
August 31, 1999. The increase is primarily attributable to higher sales.
During the nine months ended May 31, 2000, the Company repurchased
1,355,000 shares of its common stock for $18.9 million. Approximately 2.3
million shares remain under a 6 million-share authorization approved by the
Board of Directors in August 1998. Subject to market conditions, the Company
intends to continue repurchasing its common stock.
The ratio of long-term liabilities to capital was 26.5% at May 31, 2000
and 22.4% at August 31, 1999. This ratio is calculated by dividing the sum of
long-term debt and other long-term liabilities by the sum total of total
stockholders' equity, long-term debt and other long-term liabilities. The
primary factor contributing to the increase was an additional $17.0 million
borrowing under the revolving credit agreement in North America, to fund share
repurchases.
The assets and liabilities of the Company's foreign subsidiaries are
translated into U.S. dollars using current exchange rates. Income statement
items are translated at average exchange rates prevailing during the period. The
resulting translation adjustment is recorded in the "accumulated other
comprehensive income" account in stockholders' equity. The strengthening of the
U.S. dollar during the nine months ended May 31, 2000 decreased this account by
$22.9 million.
On June 15, 1998, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards No. 133, "Accounting for
Derivative Instruments and Hedging Activities" ("SFAS 133"). SFAS 133 is
effective for all fiscal quarters of all fiscal years beginning after June 15,
2000. SFAS 133 requires that all derivative instruments be recorded on the
balance sheet at their fair value. Changes in the fair value of derivatives are
recorded each period in current earnings or other comprehensive income,
depending on whether a derivative is designated as part of a hedge transaction
and, if it is the type of hedge transaction. Management of the Company
anticipates that the adoption of SFAS 133 will not have a significant effect on
the Company's results of operations or its financial position.
-11-
<PAGE>
CAUTIONARY STATEMENTS
---------------------
Statements in this report which are not historical facts are forward
looking statements which involve risks and uncertainties and actual events or
results could differ materially from those expressed or implied in this
report. These "forward looking statements" are based on currently available
information. They are also inherently uncertain, and investors must recognize
that events could turn out to be significantly different from what we had
expected. Examples of such uncertainties include, but are not limited to the
following:
- Worldwide and regional economic, business and political conditions
- Fluctuations in the value of currencies in major areas where the
Company operates, i.e. the U.S. dollar, Euro, U.K. pound sterling,
Canadian dollar, Mexican peso and Indonesian rupiah
- Fluctuations in prices of plastic resins and other raw materials
- Changes in customer demand and requirements.
-12-
<PAGE>
Part II - Other Information
---------------------------
Items 1 through 5 are not applicable or the answer to such items is
negative; therefore, the items have been omitted and no reference is required in
this Report.
Item 6 - Exhibits and Reports on Form 8-K
-----------------------------------------
(a) Exhibits
Exhibit
Number Exhibit
------ -------
27 Financial Data Schedule (Filed only in
electronic format pursuant to Item 601 (b)(27) of
Regulation S-K.)
-13-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: July 17, 2000 A. Schulman, Inc.
------------------- ------------------
(Registrant)
/s/ R. A. Stefanko
-----------------------------------
R. A. Stefanko, Executive Vice President-
Finance & Administration (Signing on
behalf of Registrant as a duly authorized
officer of Registrant and signing as
the Principal Financial Officer of Registrant)
-14-
