Spartech Corporation Provides Preview to Third Quarter Results and Updates Earnings Guidance
September 06 2007 - 9:15AM
PR Newswire (US)
ST. LOUIS, Sept. 6 /PRNewswire-FirstCall/ -- Spartech Corporation
(NYSE:SEH) announced today that sales for its fiscal third quarter
were $361.1 million compared to $377.7 million for the third
quarter of 2006 representing a decrease of 4%. This change was
caused by a 4% decrease in sales volume primarily from declines in
the transportation and recreation and leisure markets. The weakness
in demand, changing resin prices, and disruptions from the
Greenville sheet consolidation had a negative impact on material
margins and conversion costs for the quarter. As a result, earnings
per share before any special items are expected to be in the range
of $0.30 to $0.31 compared to $0.44 for the third quarter of 2006.
Spartech's interim President and Chief Executive Officer, Randy C.
Martin stated, "We are in the process of finalizing our third
quarter results and press release that will be issued prior to the
market opening on September 13, 2007. The continued weakness in
several end markets coupled with the aggressive resin pricing
environment and disruptions from our Greenville consolidation has
negatively impacted our margins. Our resin pricing has recently
started to level off and we have initiated cost reduction efforts
in response to our lower sales volumes. We are updating our full
year earnings guidance to $1.30 to $1.35 per share to recognize the
challenges we have experienced this summer and our outlook for the
remainder of the year." Spartech Corporation will hold a conference
call with investors and financial analysts at 11 a.m. EDT on
Thursday, September 13, 2007, to discuss its third quarter 2007
financial results in more detail. The call will be hosted by Randy
C. Martin, Spartech's interim President and Chief Executive
Officer. Investors can listen to the call live via a Web cast by
logging onto http://www.spartech.com/, or via phone by dialing
866-578-5801. Spartech Corporation is a leading producer of
engineered thermoplastic sheet materials, polymeric compounds and
concentrates, and engineered product solutions. The Company has
facilities located throughout the United States, Canada, Mexico,
and Europe with sales of approximately $1.5 billion, annually. Safe
Harbor For Forward-Looking Statements This press release contains
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. "Forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 relate to future events and expectations,
include statements containing such words as "anticipates,"
"believes," "estimates," "expects," "would," "should," "will,"
"will likely result," "forecast," "outlook," "projects," and
similar expressions. Forward-looking statements are based on
management's current expectations and include known and unknown
risks, uncertainties and other factors, many of which management is
unable to predict or control, that may cause actual results,
performance or achievements to differ materially from those
expressed or implied in the forward-looking statements. Important
factors which have impacted and could impact our operations and
results include: (a) adverse changes in economic or industry
conditions generally, including global supply and demand conditions
and prices for products of the types we produce; (b) our ability to
compete effectively on product performance, quality, price,
availability, product development, and customer service, (c)
material adverse changes in the markets we serve, including the
transportation, packaging, building and construction, recreation
and leisure, and other markets, some of which tend to be cyclical;
(d) our inability to achieve the level of cost savings,
productivity improvements, synergies, growth or other benefits
anticipated from acquired businesses and their integration; (e)
volatility of prices and availability of supply of energy and of
the raw materials that are critical to the manufacture of our
products, particularly plastic resins derived from oil and natural
gas, including future effects of natural disasters; (f) our
inability to manage or pass through an adequate level and
timeliness of increases to customers in the costs of materials,
freight, utilities, or other conversion costs; (g) our inability to
predict accurately the costs to be incurred, time taken to
complete, or savings to be achieved in connection with announced
production plant restructurings; (h) adverse findings in
significant legal or environmental proceedings or our inability to
comply with applicable environmental laws and regulations; (i)
adverse developments with work stoppages or labor disruptions,
particularly in the automotive industry; (j) our inability to
achieve operational efficiency goals or cost reduction initiatives;
(k) our inability to develop and launch new products successfully;
(l) restrictions imposed on us by instruments governing our
indebtedness, and the possible inability to comply with
requirements of those instruments; (m) possible weaknesses in
internal controls; and (n) our ability to successfully complete the
implementation of a new enterprise resource planning computer
system. We assume no duty to update our forward-looking statements,
except as required by law. DATASOURCE: Spartech Corporation
CONTACT: Randy C. Martin, President and Chief Executive Officer of
Spartech Corporation, +1-314-721-4242 Web site:
http://www.spartech.com/
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