NEW YORK (AP) -- Shares of A. Schulman Inc. slid Tuesday as the company's second-quarter results missed analysts' expectations and it cut its full-year earnings forecast.
THE SPARK: Late Monday the supplier of plastic compounds and resins reported adjusted earnings of 27 cents per share on revenue of $522.4 million. Analysts polled by FactSet expected earnings of 39 cents per share on revenue of $526.4 million.
Economic troubles in Europe and increased competition on price from its peers pressured the performance.
Schulman lowered its full-year earnings forecast to a range of $2.08 to $2.13 per share for the year versus a forecast in January of adjusted earnings of $2.14 to $2.19 per share. Analysts had forecast adjusted earnings of $2.15 per share for the year.
THE BIG PICTURE: Schulman has already cut jobs, begun to consolidate some manufacturing facilities and made other changes to put itself in a better financial position. The Akron, Ohio, company said Monday that it may cut costs further and is looking at other consolidation efforts in response to weak demand.
SHARE ACTION: Schulman's stock dropped $3.38, or 11.4 percent, to $26.37 in midday trading. The shares have traded in a 52-week range of $17.75 to $33.40. For the year to date, the stock is up 2.8 percent.
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