AKRON, Ohio, June 13 - A. Schulman, Inc. (NASDAQ:SHLM) today announced price increases of up to 20 percent for its North American Masterbatch and Engineered Plastics divisions, effective June 16 and July 1, 2008, respectively, or as contracts allow. These price actions are driven primarily by rapid, significant and sustained increases in key raw material, energy, logistical and other associated costs.
"Despite ongoing efforts to alleviate the effects of the extraordinary rise in raw material, energy and transportation costs, we have reached a point where the only reasonable course is to implement these price increases," said Joseph M. Gingo, Chairman, President and Chief Executive Officer. "This action is essential to sustaining the Company as a viable provider - one that remains committed to the industry and to bringing our customers high-quality, value-added products and services."
Gingo added that the Company continues to achieve productivity improvements and has revamped its global purchasing and supply chain processes to reduce costs, improve efficiencies and better leverage its worldwide purchasing power. Additionally, management is focused on reducing working capital levels, revitalizing product development activities and implementing a global continuous improvement program.
"We will continue to drive our strategy with a strong sense of urgency to deliver greater value to our customers and stockholders," he said. "We firmly believe these efforts will restore our North American operations to profitability and strengthen our entire Company for long-term growth."
About A. Schulman, Inc.
Headquartered in Akron, Ohio, A. Schulman is a leading international supplier of high-performance plastic compounds and resins. These materials are used in a variety of consumer, industrial, automotive and packaging applications. The Company employs about 2,400 people and has 16 manufacturing facilities in North America and Europe (including Asia). Revenues for the fiscal year ended August 31, 2007, were $1.8 billion. Additional information about A. Schulman can be found at www.aschulman.com.
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