A. Schulman, Inc. announced today [Wednesday] actions to optimize the Company’s back office and support functions in Europe, Middle East and Africa (“EMEA”) to better align its operations with current market conditions in the region.
During the first half of fiscal 2015, A. Schulman plans to reduce headcount in EMEA by approximately 40 employees, with the majority of reductions expected to be in the areas of back office and support functions.
The Company anticipates the total annual pre-tax benefit to be approximately $4 million, and it expects to record related charges of approximately $10 million, primarily in the first half of fiscal 2015. There were no charges recorded during the fiscal year ended August 31, 2014, related to this plan.
“As part of A. Schulman’s Safety, Smart Sales and Smart Savings program, we continually evaluate and refine how to best serve our customer base, and we believe that a more efficient and aligned organization will foster harmonization and improve productivity,” said Heinrich Lingnau, Vice President and General Manager, EMEA. “While these reductions are never easy, this latest step will support profitable growth in the region and for the Company overall.”
Bernard Rzepka, Executive Vice President and Chief Operating Officer of A. Schulman, said, “While we are disappointed with the current economic conditions in Europe, we have an experienced team in place and have always taken proactive steps when required as we did in fiscal 2012 and 2013. During that time period, we generated approximately $8 million in savings from restructuring and optimization efforts in Europe.”
The Company expects to announce its 2014 fourth-quarter and full-year results on Wednesday, October 22, 2014, after the market closes, and will hold its fiscal 2014 fourth-quarter earnings conference call on Thursday, October 23, at 10 a.m. Eastern time.
Source: A. Schulman, Inc.
