MOSCOW (MRC) -- On the heels of recent financial losses, material supplier A. Schulman Inc. will eliminate approximately 60 positions, mainly from its middle management ranks, said Canplastics.
According to a Nov. 14 filing with the U.S. Securities and Exchange Commission, the Fairlawn, Ohio-based company anticipates that a total annual pre-tax savings of approximately USD5 million to USD6 million will be realized from reorganization.
The company has not released any information about the timeline of the downsizing.
In the first week of November, Schulman reported net sales of USD604 million for its fourth quarter of 2016, down from USD674 in the same prior year quarter – a decline of 8.3%. The company’s net sales for the U.S. and Canada were USD158 million, down 18.6%; and in Europe, Middle East and Africa net sales were USD299 million, down 6.7%.
In total, Schulman expects to post a loss of more than USD350 million for its 2016 fiscal year, due to what the company described as problems relating to its purchase of Citadel Plastics in 2015.
As MRC informed earlier, A. Schulman Inc. announced that it has expanded its existing compounding capacity by adding two new production lines at the Kerpen plant in Germany. In addition to the two twin screw extruders, the company has invested in a fully automatic packaging line.
A. Schulman is a global plastics supplier, headquartered in Akron, Ohio, and a leading international supplier of high-performance plastic compounds and resins, which are used as raw materials in a variety of markets. A. Schulman has 33 manufacturing facilities globally. A. Schulman's fiscal third-quarter earnings fell 69% amid continued sluggishness in European markets and higher-than-expected costs in Latin America, where the company has been consolidating its Brazilian operations.
MRC