A. Schulman 3Q easily tops Wall Street expectations and shares jump

A. Schulman posts sharp jump in 3Q profit

AKRON, Ohio — Profits at A. Schulman Inc. grew sharply during the third-quarter, boosted by the improving economy and also some one-time gains, the plastics maker said Thursday.

Shares spiked nearly 7 percent with the results easily topping Wall Street expectations.

“I am very pleased with our strong earnings performance in fiscal 2010 which was driven primarily by cost-reduction actions and improved mix in North America and Europe as well as the steadily recovering marketplace,” said President and CEO Joseph Gingo.

For the three months ended May 31, the company reported net income of $25.8 million, or 92 cents per share, up from $7.4 million, or 29 cents per share, in the same period a year earlier.

Adjusted earnings were 48 cents per share for the most recent quarter. That excludes gains related to purchase accounting adjustments, asset impairments and other items.

Revenue rose 41 percent to $420.3 million from $297.6 million.

Analysts, on average, were expecting earnings of 41 cents per share, excluding items, according to a poll by Thomson Reuters.

Company shares $1.25 to $19.90 in early trading Thursday.