news
Lucent quality issues hit Schulman Q1 results
A Schulman has reported its results for the fi rst three months of its fi scal year, ending 30 November 2015, revealing a $4.9m hit due to quality reporting issues at two former Lucent Polymer facilities that it acquired with its purchase of Citadel in 2015. The company said the
issues arose when it discov- ered discrepancies between laboratory data and certifi ca- tions provided by Lucent to customers about certain products using recycled or reclaimed raw materials. It said it immediately imple- mented stricter protocols and notifi ed all of its customers. The cost impact included
product and manufacturing operational costs, dedicated internal personnel costs and a reduction in inventory value, together with extra legal and investigative costs. The effect was most felt in the Engi- neered Plastics business unit in North America, where net sales fell by 17.6% on a like-for-like business from Q1 of 2014-15, excluding Citadel. Volumes and revenues were
A Schulman CEO Bernard Rzepka
also weak in the Masterbatch and Specialty Powders business units. Overall, A Schulman’s
global net sales were 2.4% down on a like-for-like basis during Q1. Including Citadel, they were up 5.6% at $649.2m. Currency translation had an additional 10% negative impact. However, adjusted gross margin increased from 14.2% to 16.8% as the company continued to transition from commodities to specialities. Revenues in Europe and
Asia were more or less fl at, once currency translations are factored out. Latin America
was more of “a bright spot,” according to CEO Bernard Rzepka. He said: “I am not satisfi ed with our bottom line results,” adding “we are pleased with our continued progress towards our strategic vision of transforming A. Schulman into a highly profi table premier plastics solution provider.” The potential headwind
from the Lucent issue could amount to $15-20m, Rzepka told analysts. This is seen as the maximum potential loss in sales from two plants with combined revenues of $71m, though the fi rm is hopeful that it could be less than that once the whole situation has played out. Schulman also announced the addition of two more compounding lines and increased packaging capacity at its plant at Kerpen in Germany. The new investment will support the company’s introduction of its new Ecotran PPS compounds, according to Horst Klink, VP Engineering Plastics EMEA.
www.aschulman.com
Trilogiq opts for EMS PAs
French logistics equipment maker Trilogiq has selected two reinforced polyamide grades from EMS-Grivory for production of connector elements used in its latest Graphit modular racking system. The logistics fi rm is using glass reinforced
Grilon TSG-60 PA6/66 and carbon fi bre reinforced Grivory GC-4H PA66 + PA 6I/X resin to produce
6 COMPOUNDING WORLD | February 2016
the mechanical parts of the connector elements, which are manufactured in a two-component moulding process where a TPU gripping surface is also applied. The connector elements offer a weight saving of up to 60% over steel, together with enhanced durability and resistance to corrosion.
www.emsgrivory.com
www.compoundingworld.com
ENTEK’s Effmann to retire
John Effmann, Director of Sales & Marketing at US twin screw extruder maker ENTEK, is to retire at the end of March this year. Effmann joined ENTEK in 2005 but has spent more than 40 years in plastics industry roles. He has been an active member of the Society of the Plastics Industry and was chairman of NPE 2012, when he lead the show’s move from Chicago to Orlando. “We congratulate John on his upcoming retire- ment,” said ENTEK President Kirk Hanawalt. “He has had a great career in the plastics industry and has been an important part of ENTEK’s growth for the past 11 years.
ENTEK also announced
the promotion of Linda Campbell from Regional Sales Manager to the role of Director of Sales. Tammy Straw moves from Business Development Manager to Marketing and Development Manager.
www.entek.com
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