AKRON, Ohio, July 1, 2014 /PRNewswire/ --


    --  Net income from continuing operations for the third quarter of fiscal
        2014 was $19.1 million, or $0.65 per diluted share; adjusted net income
        from continuing operations for the third quarter of fiscal 2014,
        excluding certain items, was $21.8 million, or $0.74 per diluted share,
        a 48% improvement over the prior-year quarter
    --  The Company benefitted from both organic growth as well as acquisitions
        in the quarter
    --  Company raises full-year fiscal 2014 adjusted net income guidance to a
        range of $2.31 to $2.36 per diluted share

A. Schulman, Inc. (Nasdaq-GS: SHLM) announced today earnings for the fiscal 2014 third quarter ended May 31, 2014.

Joseph M. Gingo, Chairman, President and Chief Executive Officer, said, "I am pleased with our excellent third-quarter financial results which reflect continued demand in our key end markets as well as contributions from our recent acquisitions. Unlike last year's unusual third quarter, I believe we have returned to our typical historic pattern where our third quarter is the strongest. While our results are strong, we will continue to look for operational efficiencies, drive product mix improvement and seek acquisitions that expand our markets and provide profitable growth."

Bernard Rzepka, Chief Operating Officer, stated, "We are pleased with our global organic growth rate, particularly in Europe where improved mix and growing automotive sales have bolstered our quarter and nine-month results. Globally, we continue to achieve double-digit growth in our custom performance color product family. In Europe, Middle East and Africa (EMEA) we continue to see steady growth in other key markets such as packaging. In the Americas, we saw a similar pattern with strength in our engineered plastics product family as a result of our acquisitions, and we had significant contributions from our specialty powders business. In Asia Pacific (APAC), we continue to improve volume and sales by executing our growth activities aided by our recent Perrite acquisition. Globally, our recent acquisitions contributed to a 10.2% quarter-over-quarter increase in net sales. We expect this growth rate to continue now that we have closed on the acquisition of Ferro Corporation's specialty plastics business."

Fiscal Third-Quarter Results

In the fiscal 2014 third quarter, net sales in the EMEA segment increased 14% compared with the same period last year. During the quarter, the incremental contribution of the Perrite acquisition in EMEA was $22.2 million and 14.2 million pounds in net sales and volume, respectively. Additionally, sales and volume benefited from greater demand as a result of continued strengthening in the automotive market and consistent strength in the packaging market. Foreign currency translation positively impacted the segment's net sales by $21.6 million. EMEA gross profit was $56.8 million for the quarter, an increase of $8.1 million compared with the same three-month period last year. The increase in gross profit was primarily attributed to the incremental contribution of the Perrite acquisition, favorable product mix and overall higher volumes in all product families. Foreign currency translation positively impacted EMEA gross profit by $2.9 million.

Net sales for the Americas increased by 18.9% compared with the prior-year period. This increase was primarily driven by the incremental contributions of the Network Polymers and Prime Colorants acquisitions which totaled $20 million and 13.3 million pounds in net sales and volume, respectively. Foreign currency translation negatively impacted the segment's net sales by $5.1 million. Gross profit for the Americas was $28.3 million in the quarter, an increase of $8.3 million compared with the same period last year. Gross profit benefitted from recent acquisitions, improved mix, and prior restructuring initiatives which were partially offset by the increased variable incentive compensation expense of $0.5 million and unfavorable foreign currency translation of $0.6 million.

During the quarter, net sales for the Company's APAC segment increased approximately 52% compared with the same prior-year period. The contribution of the Perrite acquisition in APAC was $13.5 million and 10.1 million pounds in net sales and volume, respectively. Excluding the Perrite acquisition, volume increased by 22% but was partially offset by decreased price per pound driven by continued competitive pricing pressures primarily in the masterbatch business. Gross profit for APAC for the quarter increased 24% compared with the prior-year period. This increase was primarily attributed to the positive contribution from the Perrite acquisition. Gross profit percentage declined as a result of competitive pricing pressures and the broadening of the Company's product portfolio within the APAC region.

Year-to-Date Results

Net sales for the nine months ended May 31, 2014 were $1.8 billion, an increase of 14% compared with the same period last year. Incremental net sales and volume from the Company's recent acquisitions contributed $142.6 million and 98.1 million pounds, respectively. Excluding the impact of recent acquisitions, net sales were positively impacted by a 3.2% increase in price per pound and a 1.8% increase in volume. Foreign currency translation favorably impacted net sales by $30.8 million.

The Company's SG&A expenses, excluding certain items, increased $20.6 million compared with the same period in the prior year. The increase was primarily attributable to incremental SG&A expense of $7.6 million from recent acquisitions, higher variable incentive compensation expense of $9.4 million and unfavorable foreign currency translation of $2.5 million. SG&A expense, excluding certain items, was 9.6% of net sales for the nine-month period. Operating income increased $15.2 million for the nine months ended May 31, 2014, compared with the same prior-year period. Total operating income, before certain items, for the nine months ended May 31, 2014, was $72.1 million, an increase of $16.7 million compared with a year ago.

Working Capital/Cash Flow From Operations

Cash provided from operations was $35 million and $52.6 million for the nine months ended May 31, 2014 and 2013, respectively. The Company's cash and cash equivalents decreased $23.3 million from August 31, 2013. This decrease was driven primarily by fiscal 2014 acquisitions and was partially offset by an increase in net borrowings and cash generated from operations. Working capital was 60 days at the end of the fiscal 2014 third quarter, an increase of three days when compared with the same period last year.

Capital expenditures for the nine months were $24.1 million compared with $20.5 million last year. The Company continued regular and ongoing investments in the Company's global manufacturing facilities and technical innovation centers.

During the three- and nine-month periods ended May 31, 2014, the Company declared and paid quarterly cash dividends of $0.20 and $0.60 per common share, respectively. The total amount of these dividends was $5.9 million and $17.7 million, respectively.

Business Outlook

"We are pleased with the strength of our third-quarter and year-to-date results despite modest global economic growth. Our acquisitions, combined with the benefits of prior restructurings and our organic growth initiatives, are putting us on pace to deliver a record year for A. Schulman. Accordingly, we are raising our expectations for fiscal 2014 adjusted net income to be in a range of $2.31 to $2.36 per diluted share, which would represent an approximate 25% increase over the prior-year results using the high end of this range. This equates to a fourth-quarter adjusted net income expectation of between $0.61 and $0.66 per diluted share, which resumes a more historical trend of quarterly earnings given the normal holiday cycle in the U.S. and Europe in the July and August time period," Gingo said.

Conference Call on the Web

A live Internet broadcast of A. Schulman's conference call regarding fiscal 2014 third-quarter earnings can be accessed at 10:00 a.m. Eastern Time on Wednesday, July 2, 2014 on the Company's website, www.aschulman.com. An archived replay of the call will also be available on the website.

Investor Presentation Materials

Senior executives of the Company may participate in meetings with analysts and investors throughout the fiscal year. The Company has posted presentation materials, portions of which may be used during such meetings, in the Investors section of its website at www.aschulman.com. The presentation will remain on the website as long as it is in use.

About A. Schulman, Inc.

A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio. Since 1928, the Company has been providing innovative solutions to meet its customers' demanding requirements. The Company's customers span a wide range of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others. The Company employs approximately 3,800 people and has 43 manufacturing facilities globally. A. Schulman reported net sales of $2.1 billion for the fiscal year ended August 31, 2013. Additional information about A. Schulman can be found at www.aschulman.com.

Use of Non-GAAP Financial Measures

This release includes certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures include segment gross profit, SG&A expenses excluding certain items, operating income excluding certain items, net income excluding certain items and net income per diluted share excluding certain items, as discussed further in the Reconciliation of GAAP and Non-GAAP Financial Measures below. These non-GAAP financial measures are considered relevant to aid analysis and understanding of the Company's results and business trends. However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures, and tables included in this release reconcile each non-GAAP financial measure with the most directly comparable GAAP financial measure. The most directly comparable GAAP financial measures for these purposes are gross profit, SG&A expenses, operating income, net income and net income per diluted share. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

While the Company believes that these non-GAAP financial measures provide useful supplemental information to investors, there are very significant limitations associated with their use. These non-GAAP financial measures are not prepared in accordance with GAAP, may not be reported by all of the Company's competitors and may not be directly comparable to similarly titled measures of the Company's competitors due to potential differences in the exact method of calculation. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

Cautionary Statements

A number of the matters discussed in this document that are not historical or current facts deal with potential future circumstances and developments and may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historic or current facts and relate to future events and expectations. Forward-looking statements contain such words as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. 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 that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect the Company's future financial performance, include, but are not limited to, the following:


    --  worldwide and regional economic, business and political conditions,
        including continuing economic uncertainties in some or all of the
        Company's major product markets or countries where the Company has
        operations;
    --  the effectiveness of the Company's efforts to improve operating margins
        through sales growth, price increases, productivity gains, and improved
        purchasing techniques;
    --  competitive factors, including intense price competition;
    --  fluctuations in the value of currencies in areas where the Company
        operates;
    --  volatility of prices and availability of the supply of energy and raw
        materials that are critical to the manufacture of the Company's
        products, particularly plastic resins derived from oil and natural gas;
    --  changes in customer demand and requirements;
    --  effectiveness of the Company to achieve the level of cost savings,
        productivity improvements, growth and other benefits anticipated from
        acquisitions, joint ventures and restructuring initiatives;
    --  escalation in the cost of providing employee health care;
    --  uncertainties regarding the resolution of pending and future litigation
        and other claims;
    --  the performance of the global automotive market as well as other markets
        served;
    --  further adverse changes in economic or industry conditions, including
        global supply and demand conditions and prices for products; and
    --  operating problems with our information systems as a result of system
        security failures such as viruses, computer "hackers" or other causes.

The risks and uncertainties identified above are not the only risks the Company faces. Additional risk factors that could affect the Company's performance are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2013. In addition, risks and uncertainties not presently known to the Company or that it believes to be immaterial also may adversely affect the Company. Should any known or unknown risks or uncertainties develop into actual events, or underlying assumptions prove inaccurate, these developments could have material adverse effects on the Company's business, financial condition and results of operations.

SHLM_ALL

www.aschulman.com




                                                                           A. SCHULMAN, INC.

                                                                 CONSOLIDATED STATEMENTS OF OPERATIONS


                                                                                           Three months ended May 31,                             Nine months ended May 31,
                                                                                           --------------------------                             -------------------------

                                                                                         2014                             2013                                2014                 2013
                                                                                         ----                             ----                                ----                 ----

                                                                                                                     Unaudited
                                                                                                       (In thousands, except per share data)

    Net sales                                                                                    $645,735                                    $548,589                       $1,819,640  $1,596,114

    Cost of sales                                                                     553,771                          474,545                           1,574,269            1,387,206

    Selling, general and administrative expenses                                       65,536                           54,409                             181,647              157,744

    Restructuring expense                                                               1,078                            1,807                               4,583                5,413

    Asset impairment                                                                        -                           1,121                                 104                1,619

    Curtailment (gain) loss                                                                 -                               -                                  -                 333
                                                                                          ---                             ---                                ---                 ---

    Operating income                                                                   25,350                           16,707                              59,037               43,799

    Interest expense                                                                    1,433                            1,865                               6,112                5,559

    Interest income                                                                      (68)                            (80)                              (211)               (408)

    Foreign currency transaction (gains) losses                                          (28)                             139                               2,120                  676

    Other (income) expense, net                                                             4                             (27)                              (267)               (374)
                                                                                          ---                              ---                                ----                 ----

    Income from continuing operations before taxes                                     24,009                           14,810                              51,283               38,346

    Provision (benefit) for U.S. and foreign income taxes                               4,662                            4,497                              12,657                3,584
                                                                                        -----                            -----                              ------                -----

    Income from continuing operations                                                  19,347                           10,313                              38,626               34,762

    Income (loss) from discontinued operations, net of tax                               (23)                         (4,821)                               2,979              (5,102)
                                                                                          ---                           ------                               -----               ------

    Net income                                                                         19,324                            5,492                              41,605               29,660

    Noncontrolling interests                                                            (233)                           (275)                              (584)               (881)
                                                                                         ----                             ----                                ----                 ----

    Net income attributable to A. Schulman, Inc.                                                  $19,091                                      $5,217                          $41,021     $28,779
                                                                                                  =======                                      ======                          =======     =======


    Weighted-average number of shares outstanding:

    Basic                                                                              29,081                           29,316                              29,052               29,275

    Diluted                                                                            29,375                           29,477                              29,300               29,421


    Basic earnings per share attributable to A. Schulman, Inc.

    Income from continuing operations                                                               $0.66                                       $0.34                            $1.31       $1.16

    Income (loss) from discontinued operations                                              -                          (0.16)                               0.10               (0.18)
                                                                                          ---                           -----                                ----                -----

    Net income attributable to A. Schulman, Inc.                                                    $0.66                                       $0.18                            $1.41       $0.98
                                                                                                    =====                                       =====                            =====       =====


    Diluted earnings per share attributable to A. Schulman, Inc.

    Income from continuing operations                                                               $0.65                                       $0.34                            $1.30       $1.15

    Income (loss) from discontinued operations                                              -                          (0.16)                               0.10               (0.17)

    Net income attributable to A. Schulman, Inc.                                                    $0.65                                       $0.18                            $1.40       $0.98
                                                                                                    =====                                       =====                            =====       =====


    Cash dividends per common share                                                                $0.200                                      $0.195                           $0.600      $0.585
                                                                                                   ======                                      ======                           ======      ======




                               A. SCHULMAN, INC.

                          CONSOLIDATED BALANCE SHEETS


                                May 31,                    August 31,
                                     2014                            2013
                                     ----                            ----

                                                Unaudited
                                            (In thousands)

                                   ASSETS

    Current assets:

    Cash and
     cash
     equivalents                               $110,804                       $134,054

    Accounts
     receivable,                and
     less                       $10,434
     allowance                  at August
     for                        31, 2013
     doubtful
     accounts
     of
     $11,128
     at May
     31, 2014                     384,988                           310,749

     Inventories,
     lower of
     average
     cost or
     market                       307,960                           261,658

    Prepaid
     expenses
     and other
     current
     assets                        46,992                            41,224
                                   ------                            ------

    Total
     current
     assets                       850,744                           747,685
                                  -------                           -------

    Property, plant and
     equipment, at cost:

    Land and
     improvements                  26,708                            27,954

    Buildings
     and
     leasehold
     improvements                 158,458                           146,647

    Machinery
     and
     equipment                    391,716                           356,144

    Furniture
     and
     fixtures                      42,030                            39,065

     Construction
     in
     progress                      10,902                             7,149
                                   ------                             -----

    Gross
     property,
     plant and
     equipment                    629,814                           576,959

     Accumulated
     depreciation                 397,025                           366,438

    Net
     property,
     plant and
     equipment                    232,789                           210,521
                                  -------                           -------

    Deferred
     charges
     and other
     noncurrent
     assets                        55,132                            48,723

    Goodwill                      184,547                           139,526

    Intangible
     assets,
     net                          116,224                            91,887
                                  -------                            ------

    Total
     assets                                  $1,439,436                     $1,238,342
                                             ==========                     ==========

                           LIABILITIES AND EQUITY

    Current liabilities:

    Accounts
     payable                                   $310,098                       $265,477

    U.S. and
     foreign
     income
     taxes
     payable                        8,838                             6,423

    Accrued
     payroll,
     taxes and
     related
     benefits                      50,527                            43,072

    Other
     accrued
     liabilities                   44,618                            48,689

    Short-
     term debt                     21,955                             8,373
                                   ------                             -----

    Total
     current
     liabilities                  436,036                           372,034

    Long-term
     debt                         292,742                           207,435

    Pension
     plans                        103,639                            98,599

    Deferred
     income
     taxes                         23,769                            20,873

    Other
     long-
     term
     liabilities                   24,968                            24,657

    Total
     liabilities                  881,154                           723,598
                                  -------                           -------

    Commitments and
     contingencies

    Stockholders' equity:

    Common
     stock, $1                  2014 and
     par                        48,094
     value,                     shares at
     authorized                 August
     -75,000                    31, 2013
     shares,
     issued -
     48,183
     shares at
     May 31,                       48,183                            48,094

    Additional
     paid-in
     capital                      268,326                           263,158

     Accumulated
     other
     comprehensive
     income
     (loss)                        16,192                               682

    Retained
     earnings                     597,674                           574,370

    Treasury
     stock, at
     cost,
     18,874
     shares at
     May 31,
     2014 and
     18,940
     shares at
     August
     31, 2013                   (379,922)                        (378,927)
                                 --------                          --------

    Total A.
     Schulman,
     Inc.'s
     stockholders'
     equity                       550,453                           507,377
                                  -------                           -------

     Noncontrolling
     interests                      7,829                             7,367
                                    -----                             -----

    Total
     equity                       558,282                           514,744

    Total
     liabilities
     and
     equity                                  $1,439,436                     $1,238,342
                                             ==========                     ==========




                                        A. SCHULMAN, INC.

                              CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                    Nine months ended May 31,
                                                    -------------------------

                                                 2014                              2013
                                                 ----                              ----

                                                          Unaudited
                                                       (In thousands)

    Operating from continuing
     and discontinued
     operations:

    Net income                                            $41,605                        $29,660

    Adjustments to reconcile
     net income to net cash
     provided from (used in)
     operating activities:

    Depreciation                               24,751                            22,489

    Amortization                               10,308                             8,665

    Deferred tax
     provision                                (3,182)                          (8,879)

    Pension,
     postretirement
     benefits and
     other
     deferred
     compensation                               9,157                             6,465

    Asset
     impairment                                   104                             5,619

    Curtailment
     (gain) loss                                    -                              333

    Gain on sale
     of assets
     from
     discontinued
     operations                               (3,344)                                -

    Changes in assets and
     liabilities, net of
     acquisitions:

    Accounts
     receivable                              (26,048)                         (13,123)

    Inventories                              (15,330)                         (18,841)

    Accounts
     payable                                    2,847                            27,092

    Income taxes                                  204                           (1,157)

    Accrued
     payroll and
     other
     accrued
     liabilities                                  260                             2,034

    Other assets
     and long-
     term
     liabilities                              (6,296)                          (7,780)
                                               ------                            ------

    Net cash
     provided
     from (used
     in)
     operating
     activities                                35,036                            52,577
                                               ------                            ------

    Investing from continuing
     and discontinued
     operations:

    Expenditures
     for
     property,
     plant and
     equipment                               (24,126)                         (20,518)

    Proceeds from
     the sale of
     assets                                     5,255                            11,745

    Business
     acquisitions,
     net of cash                            (115,624)                          (36,360)
                                             --------                           -------

    Net cash
     provided
     from (used
     in)
     investing
     activities                             (134,495)                          (45,133)
                                             --------                           -------

    Financing from continuing
     and discontinued
     operations:

    Cash
     dividends
     paid                                    (17,717)                         (17,313)

    Increase
     (decrease)
     in short-
     term debt                                  3,747                          (28,086)

    Borrowings on
     long-term
     debt                                     703,141                           134,097

    Repayments on
     long-term
     debt                                   (609,501)                          (89,241)

    Payment of
     debt
     issuance
     costs                                    (1,782)                                -

    Issuances of
     stock,
     common and
     treasury                                     403                             1,469

    Redemptions
     of common
     stock                                      (361)                            (397)

    Purchases of
     treasury
     stock                                    (1,116)                          (1,021)
                                               ------                            ------

    Net cash
     provided
     from (used
     in)
     financing
     activities                                76,814                             (492)
                                               ------                              ----

    Effect of
     exchange
     rate changes
     on cash                                    (605)                            (895)
                                                 ----                              ----

    Net increase
     (decrease)
     in cash and
     cash
     equivalents                             (23,250)                            6,057
                                              -------                             -----

    Cash and cash
     equivalents
     at beginning
     of period                                134,054                           124,031

    Cash and cash
     equivalents
     at end of
     period                                              $110,804                       $130,088
                                                         ========                       ========




                                                                                                                                                    A. SCHULMAN, INC.

                                                                                                                                  Reconciliation of GAAP and Non-GAAP Financial Measures


    Three months ended May 31, 2014            Cost of Sales          Gross  SG&A    Restructuring                   Asset                   Operating income                Operating           Income tax          Net income
                                                                      margin            expense                   impairment                                                 income per            expense         attributable to
                                                                                                                                                                                pound            (benefit)          A. Schulman,
                                                                                                                                                                                                                        Inc.             Diluted EPS
    -------------------------------            -------------          ------  ----  --------------               -----------                 ----------------                ----------         -----------       ----------------       -----------

                                                                                            (In thousands, except for %'s, per pound and per share data)

    As reported                                              $553,771         14.2%                                   $65,536                                                      $1,078                      $                      -                $25,350           $0.046           $4,662    $19,091     $0.65

    Certain items:

    Asset write-downs (1)                                  -                                               -                                              -                                   -                                  -                                -               -     -

    Costs related to acquisitions (2)                      -                                           (888)                                              -                                   -                                888                                16              872   0.03

    Restructuring and related costs (3)                (149)                                           (933)                                        (1,078)                                   -                              2,160                               320            1,840   0.06

    Inventory step-up (4)                                  -                                               -                                              -                                   -                                  -                                -               -     -

    Tax benefits (charges)                                 -                                               -                                              -                                   -                                  -                                -               -     -

    Loss (income) from discontinued operations                                                                                                                                                                                                                                   23      -
                                                                                                                                                                                                                                                                                ---    ---

    Total certain items                                        $(149)         0.1%                                  $(1,821)                                                   $(1,078)                     $                      -                 $3,048           $0.006             $336     $2,735     $0.09
                                                                -----           ---                                    -------                                                     -------                    ---                    ---                 ------           ------             ----     ------     -----

    As Adjusted                                              $553,622         14.3%                                   $63,715                                             $             -                     $                      -                $28,398           $0.052           $4,998    $21,826     $0.74
                                                             ========          ====                                    =======                                           ===           ===                   ===                    ===                =======           ======           ======    =======     =====


    Percentage of Revenue                                                                               9.9%                                                                                                                  4.4%                                             3.4%
                                                                                                         ===                                                                                                                    ===                                               ===


    Three months ended May 31, 2013            Cost of Sales          Gross  SG&A    Restructuring                   Asset                   Operating income                Operating           Income tax          Net income
                                                                      margin            expense                   impairment                                                 income per            expense         attributable to
                                                                                                                                                                                pound            (benefit)          A. Schulman,
                                                                                                                                                                                                                        Inc.             Diluted EPS
    -------------------------------            -------------          ------  ----  --------------               -----------                 ----------------                ----------         -----------       ----------------       -----------

                                                                                            (In thousands, except for %'s, per pound and per share data)

    As reported                                              $474,545         13.5%                                   $54,409                                                      $1,807                                        $1,121                 $16,707           $0.034           $4,497     $5,217     $0.18

    Certain items:

    Asset write-downs (1)                              (265)                                               -                                              -                             (1,121)                               1,386                                 -           1,386   0.05

    Costs related to acquisitions (2)                      -                                           (849)                                              -                                   -                                849                              (41)             890   0.03

    Restructuring and related costs (3)                 (56)                                         (1,303)                                        (1,807)                                   -                              3,166                               694            2,472   0.08

    Inventory step-up (4)                                  -                                               -                                              -                                   -                                  -                                -               -     -

    Tax benefits (charges)                                 -                                               -                                              -                                   -                                  -                               17             (17)     -

    Loss (income) from discontinued operations                                                                                                                                                                                                                                4,821   0.16
                                                                                                                                                                                                                                                                              -----   ----

    Total certain items                                        $(321)         0.1%                                  $(2,152)                                                   $(1,807)                                     $(1,121)                 $5,401           $0.011             $670     $9,552     $0.32
                                                                -----                                                 -------                                                     -------                                       -------                  ------           ------             ----     ------     -----

    As Adjusted                                              $474,224         13.6%                                   $52,257                                             $             -                     $                      -                $22,108           $0.045           $5,167    $14,769     $0.50
                                                             ========          ====                                    =======                                           ===           ===                   ===                    ===                =======           ======           ======    =======     =====


    Percentage of Revenue                                                                               9.5%                                                                                                                  4.0%                                             2.7%
                                                                                                         ===                                                                                                                    ===                                               ===




                                                                                                                                                                                                                       A. SCHULMAN, INC. Reconciliation of GAAP and Non-GAAP Financial Measures (Continued)


    Nine months ended May 31, 2014                                                                              Cost of Sales                  Gross               SG&A                             Restructuring                                Asset                Operating income               Operating                  Income tax                   Net income
                                                                                                                                               margin                                                  expense                                 impairment                                            income per                   expense                 attributable to
                                                                                                                                                                                                                                                                                                       pound                    (benefit)                   A. Schulman,
                                                                                                                                                                                                                                                                                                                                                                Inc.          Diluted EPS
    ------------------------------                                                                              -------------                  ------               ----                           --------------                             -----------             ----------------               ----------                -----------               ----------------     -----------

                                                                                                                                                                                                       (In thousands, except for %'s, per pound and per share data)

    As reported                                                                                                                  $1,574,269                         13.5%                                             $181,647                                                               $4,583                                                                     $104                  $59,037              $0.038             $12,657     $41,021      $1.40

    Certain items:

    Asset write-downs (1)                                                                                               (108)                                                                                 -                                                 -                                                    (104)                                          212                                    34              178      0.01

    Costs related to acquisitions (2)                                                                                    (34)                                                                           (3,343)                                                 -                                                        -                                        3,377                                   141            3,244      0.11

    Restructuring and related costs (3)                                                                                 (649)                                                                           (3,090)                                           (4,583)                                                                                                  8,322                                   920            7,692      0.26

    Inventory step-up (4)                                                                                             (1,199)                                                                                 -                                                 -                                                        -                                        1,199                                    98            1,101      0.04

    Tax benefits (charges)                                                                                                  -                                                                                 -                                                 -                                                        -                                            -                                  427            (427)   (0.02)

    Loss (income) from discontinued operations                                                                                                                                                                                                                                                                                                                                                                       (2,979)    (0.10)
                                                                                                                                                                                                                                                                                                                                                                                                                      ------     -----

    Total certain items                                                                                                            $(1,990)                         0.1%                                             $(6,433)                                                            $(4,583)                                                                  $(104)                 $13,110              $0.009              $1,620      $8,809      $0.30
                                                                                                                                    -------                           ---                                               -------                                                              -------                                                                    -----                  -------              ------              ------      ------      -----

    As Adjusted                                                                                                                  $1,572,279                         13.6%                                             $175,214                                                         $          -                                                    $                  -                 $72,147              $0.047             $14,277     $49,830      $1.70
                                                                                                                                 ==========                          ====                                              ========                                                       ===        ===                                                  ===                ===                 =======              ======             =======     =======      =====


    Percentage of Revenue                                                                                                                                                                                  9.6%                                                                                                                                                    4.0%                                                 2.7%
                                                                                                                                                                                                            ===                                                                                                                                                      ===                                                   ===


    Nine months ended May 31, 2013                                                                              Cost of Sales                  Gross               SG&A                             Restructuring                                Asset                Operating income               Operating                  Income tax                   Net income
                                                                                                                                               margin                                                  expense                                 impairment                                            income per                   expense                 attributable to
                                                                                                                                                                                                                                                                                                       pound                    (benefit)                   A. Schulman,
                                                                                                                                                                                                                                                                                                                                                                Inc.          Diluted EPS
    ------------------------------                                                                              -------------                  ------               ----                           --------------                             -----------             ----------------               ----------                -----------               ----------------     -----------

                                                                                                                                                                                                       (In thousands, except for %'s, per pound and per share data)

    As reported                                                                                                                  $1,387,206                         13.1%                                             $157,744                                                               $5,413                                                                   $1,619                  $43,799              $0.031              $3,584     $28,779      $0.98

    Certain items:

    Asset write-downs (1)                                                                                               (947)                                                                                 -                                                 -                                                  (1,619)                                        2,566                                   149            2,417      0.08

    Costs related to acquisitions (2)                                                                                       -                                                                           (1,837)                                                 -                                                        -                                        1,837                                    38            1,799      0.06

    Restructuring and related costs (3)                                                                                  (56)                                                                           (1,303)                                           (5,413)                                                         -                                        7,105                                 1,551            5,554      0.19

    Inventory step-up (4)                                                                                               (138)                                                                                 -                                                 -                                                        -                                          138                                     -             138         -

    Tax benefits (charges) (5)                                                                                              -                                                                                 -                                                 -                                                        -                                            -                                6,177          (6,177)    (0.21)

    Loss (income) from discontinued operations                                                                                                                                                                                                                                                                                                                                                                         5,102      0.18
                                                                                                                                                                                                                                                                                                                                                                                                                       -----

    Total certain items                                                                                                            $(1,141)                         0.1%                                             $(3,140)                           -                                $(5,413)                          -                                     $(1,619)                 $11,646              $0.008              $7,915      $8,833      $0.30
                                                                                                                                    -------                           ===                                               -------                                                              -------                                                                  -------                  -------              ------              ------      ------      -----

    As Adjusted                                                                                                                  $1,386,065                         13.2%                                             $154,604                                                         $          -                                                    $                  -                 $55,445              $0.039             $11,499     $37,612      $1.28
                                                                                                                                 ==========                          ====                                              ========                                                       ===        ===                                                  ===                ===                 =======              ======             =======     =======      =====


    Percentage of Revenue                                                                                                                                                                                  9.7%                                                                                                                                                    3.5%                                                 2.4%
                                                                                                                                                                                                            ===                                                                                                                                                      ===                                                   ===



    1 - Asset write-downs primarily relate to asset impairments and accelerated depreciation.

    2 - Costs related to acquisitions include third party professional, legal and other expenses associated with successful and unsuccessful full or partial acquisition and divestiture/dissolution transactions, as well as certain employee-related expenses such as travel, one-time bonuses and post-acquisition severance separate from a formal restructuring plan.

    3 - Restructuring related costs include items such as employee severance charges, lease termination charges, curtailment gains/losses, other employee termination costs and charges related to the reorganization of the legal entity structure.

    4 - Inventory step-up costs include the adjustment for fair value of inventory acquired as a result of acquisition purchase accounting.

    5 - Tax benefits (charges) include the effect of the adjustments to the Germany and Brazil valuation allowances in fiscal 2013.



                                                                                                           A. SCHULMAN, INC.

                                                                                                    SUPPLEMENTAL SEGMENT INFORMATION


                                                   Net Sales                                                                         Pounds Sold
                                                   ---------                                                                         -----------

                                                                         Three months ended May 31,
                                                                         --------------------------

    EMEA                         2014                       2013                      $ Change                % Change                          2014             2013              Lbs. Change     % Change
    ----                         ----                       ----                      --------                --------                          ----             ----              -----------     --------

                                                                 (In thousands, except for %'s)

    Masterbatch Solutions             $122,450                         $112,077                                                $10,373                      9.3%           94,228                     91,307       2,921     3.2%

    Engineered Plastics       123,634                     94,417                        29,217                                    30.9%                   77,649            59,022                     18,627       31.6%

    Distribution Services      80,666                     76,671                         3,995                                     5.2%                   96,600            95,211                      1,389        1.5%

    Specialty Powders          47,533                     44,091                         3,442                                     7.8%                   47,193            45,712                      1,481        3.2%

    Custom Performance Colors  39,505                     35,591                         3,914                                    11.0%                   13,114            12,410                        704        5.7%
                               ------                     ------                         -----                                                            ------            ------                        ---

    Total EMEA                        $413,788                         $362,847                                                $50,941                     14.0%          328,784                    303,662      25,122     8.3%
                                      ========                         ========                                                =======                      ====           =======                    =======      ======      ===


                                               Net Sales                                                                   Pounds Sold
                                               ---------                                                                   -----------

                                                                   Three months ended May 31,
                                                                   --------------------------

    Americas                     2014                       2013                      $ Change                % Change                          2014             2013              Lbs. Change     % Change
    --------                     ----                       ----                      --------                --------                          ----             ----              -----------     --------

                                                                 (In thousands, except for %'s)

    Masterbatch Solutions              $67,164                          $65,836                                                 $1,328                      2.0%           75,371                     76,033       (662)  (0.9)%

    Engineered Plastics        49,307                     33,992                        15,315                                    45.1%                   31,454            19,340                     12,114       62.6%

    Distribution Services      12,408                     12,048                           360                                     3.0%                   13,195            13,666                      (471)     (3.4)%

    Specialty Powders          45,503                     35,442                        10,061                                    28.4%                   53,410            51,334                      2,076        4.0%

    Custom Performance Colors   7,017                      5,217                         1,800                                    34.5%                    2,593             2,038                        555       27.2%
                                -----                      -----                         -----                                                             -----             -----                        ---

    Total Americas                    $181,399                         $152,535                                                $28,864                     18.9%          176,023                    162,411      13,612     8.4%
                                      ========                         ========                                                =======                      ====           =======                    =======      ======      ===


                                               Net Sales                                                                   Pounds Sold
                                               ---------                                                                   -----------

                                                                   Three months ended May 31,
                                                                   --------------------------

    APAC                         2014                       2013                      $ Change                % Change                          2014             2013              Lbs. Change     % Change
    ----                         ----                       ----                      --------                --------                          ----             ----              -----------     --------

                                                                 (In thousands, except for %'s)

    Masterbatch Solutions              $21,272                          $19,156                                                 $2,116                     11.0%           19,652                     15,721       3,931    25.0%

    Engineered Plastics        23,803                     10,161                        13,642                                   134.3%                   15,788             5,457                     10,331      189.3%

    Distribution Services         512                         19                           493                                      n/a                      618                13                        605         n/a

    Specialty Powders           4,085                      3,860                           225                                     5.8%                    3,651             3,612                         39        1.1%

    Custom Performance Colors     876                         11                           865                                   n/a                 738                2                      736            n/a
                                  ---                        ---                           ---                              --------                 ---              ---                      ---

    Total APAC                         $50,548                          $33,207                                                $17,341                     52.2%           40,447                     24,805      15,642    63.1%
                                       =======                          =======                                                =======                      ====            ======                     ======      ======     ====


                                               Net Sales                                                                   Pounds Sold
                                               ---------                                                                   -----------

                                                                   Three months ended May 31,
                                                                   --------------------------

    Consolidated                 2014                       2013                      $ Change                % Change                          2014             2013              Lbs. Change     % Change
    ------------                 ----                       ----                      --------                --------                          ----             ----              -----------     --------

                                                                 (In thousands, except for %'s)

    Masterbatch Solutions             $210,886                         $197,069                                                $13,817                      7.0%          189,251                    183,061       6,190     3.4%

    Engineered Plastics       196,744                    138,570                        58,174                                    42.0%                  124,891            83,819                     41,072       49.0%

    Distribution Services      93,586                     88,738                         4,848                                     5.5%                  110,413           108,890                      1,523        1.4%

    Specialty Powders          97,121                     83,393                        13,728                                    16.5%                  104,254           100,658                      3,596        3.6%

    Custom Performance Colors  47,398                     40,819                         6,579                                    16.1%                   16,445            14,450                      1,995       13.8%
                               ------                     ------                         -----                                                            ------            ------                      -----

    Total Consolidated                $645,735                         $548,589                                                $97,146                     17.7%          545,254                    490,878      54,376    11.1%
                                      ========                         ========                                                =======                      ====           =======                    =======      ======     ====






                                                                                                                    A. SCHULMAN, INC.

                                                                                                      SUPPLEMENTAL SEGMENT INFORMATION (continued)


                                                      Net Sales                                                                                                   Pounds Sold
                                                      ---------                                                                                                   -----------

                                                                                          Nine months ended May 31,
                                                                                          -------------------------

    EMEA                         2014               2013                                          $ Change             % Change                         2014                           2013                             Lbs.                % Change

                                                                                                                                                                                                                   Change
    ---                                                                                                                                                                                                            ------

                                                                                 (In thousands, except for %'s)

    Masterbatch Solutions               $336,976                        $333,824                                            $3,152                                        0.9%                    262,785                          261,954                       831                0.3%

    Engineered Plastics       360,983                         267,777                               93,206                                      34.8%                                       222,411                          165,748                    56,663                34.2%

    Distribution Services     241,884                         237,162                                4,722                                       2.0%                                       288,278                          287,741                       537                 0.2%

    Specialty Powders         137,941                         117,220                               20,721                                      17.7%                                       136,660                          125,359                    11,301                 9.0%

    Custom Performance Colors 111,490                         100,550                               10,940                                      10.9%                                        37,086                           34,591                     2,495                 7.2%
                              -------                         -------                               ------                                                                                   ------                           ------                     -----                  ---

    Total EMEA                        $1,189,274                      $1,056,533                                          $132,741                                       12.6%                    947,220                          875,393                    71,827                8.2%
                                      ==========                      ==========                                          ========                                        ====                     =======                          =======                    ======                 ===


                                                 Net Sales                                                                                            Pounds Sold
                                                 ---------                                                                                            -----------

                                                                                   Nine months ended May 31,
                                                                                   -------------------------

    Americas                     2014               2013                                          $ Change             % Change                         2014                           2013                             Lbs.                % Change

                                                                                                                                                                                                                   Change
    ---                                                                                                                                                                                                            ------

                                                                                 (In thousands, except for %'s)

    Masterbatch Solutions               $193,590                        $194,579                                            $(989)                                     (0.5)%                    213,900                          219,305                   (5,405)                       (2.5)%

    Engineered Plastics       124,277            103,963                                20,314                                                  19.5%                           78,196                      62,659                               15,537                 24.8%

    Distribution Services      34,701             33,793                                   908                                                   2.7%                           37,667                      39,962                              (2,295)               (5.7)%

    Specialty Powders         114,879             99,449                                15,430                                                  15.5%                          151,102                     151,680                                (578)               (0.4)%

    Custom Performance Colors  17,578             14,530                                 3,048                                                  21.0%                            6,626                       5,454                                1,172                 21.5%
                               ------             ------                                 -----                                                                                   -----                       -----                                -----

    Total Americas                      $485,025                        $446,314                                           $38,711                                        8.7%                    487,491                          479,060                     8,431                          1.8%
                                        ========                        ========                                           =======                                         ===                     =======                          =======                     =====                           ===


                                                 Net Sales                                                                                            Pounds Sold
                                                 ---------                                                                                            -----------

                                                                                   Nine months ended May 31,
                                                                                   -------------------------

    APAC                         2014               2013                                          $ Change             % Change                         2014                           2013                             Lbs.                % Change

                                                                                                                                                                                                                   Change
    ---                                                                                                                                                                                                            ------

                                                                                 (In thousands, except for %'s)

    Masterbatch Solutions                $61,681                         $57,136                                            $4,545                                        8.0%                     55,126                           45,931                     9,195                         20.0%

    Engineered Plastics        69,085             25,556                                43,529                                                 170.3%                           45,381                      13,688                               31,693                231.5%

    Distribution Services       1,315                 38                                 1,277                                                    n/a                  1,622                          26                            1,596                       n/a

    Specialty Powders          11,111             10,288                                   823                                                   8.0%                           10,074                      10,053                                   21                  0.2%

    Custom Performance Colors   2,149                249                                 1,900                                                    n/a                  1,700                          81                            1,619                       n/a
                                -----                ---                                 -----                                                                         -----                         ---                            -----

    Total APAC                          $145,341                         $93,267                                           $52,074                                       55.8%                    113,903                           69,779                    44,124                         63.2%
                                        ========                         =======                                           =======                                        ====                     =======                           ======                    ======                          ====


                                                 Net Sales                                                                                            Pounds Sold
                                                 ---------                                                                                            -----------

                                                                                   Nine months ended May 31,
                                                                                   -------------------------

    Consolidated                 2014               2013                                          $ Change             % Change                         2014                           2013                             Lbs.                % Change

                                                                                                                                                                                                                   Change
    ---                                                                                                                                                                                                            ------

                                                                                 (In thousands, except for %'s)

     Masterbatch Solutions              $592,247                        $585,539                                            $6,708                                        1.1%                    531,811                          527,190                     4,621                          0.9%

     Engineered Plastics      554,345            397,296                               157,049                                                  39.5%                          345,988                     242,095                              103,893                 42.9%

     Distribution Services    277,900            270,993                                 6,907                                                   2.5%                          327,567                     327,729                                (162)                    -   %

     Specialty Powders        263,931            226,957                                36,974                                                  16.3%                          297,836                     287,092                               10,744                  3.7%

     Custom Performance       131,217            115,329                                15,888                                                  13.8%                           45,412                      40,126                                5,286                 13.2%

     Colors


      Total Consolidated              $1,819,640                      $1,596,114                                          $223,526                                       14.0%                  1,548,614                        1,424,232                   124,382                          8.7%
                                      ==========                      ==========                                          ========                                        ====                   =========                        =========                   =======                           ===



                                                                             A. SCHULMAN, INC.

                                                                     SUPPLEMENTAL SEGMENT INFORMATION

                                                                                (continued)


                                                         Three months ended May 31,                         Nine months ended May 31,
                                                         --------------------------                         -------------------------

                                                          2014                                2013                                 2014       2013
                                                          ----                                ----                                 ----       ----

                                                                                        Unaudited

                                                                             (In thousands, except for %'s)

    Segment gross profit

    EMEA                                                          $56,798                                        $48,684                 $156,237  $133,715

    Americas                                            28,263                              19,994                               70,922     60,155

    APAC                                                 7,052                               5,687                               20,202     16,179
                                                         -----                               -----                               ------     ------

         Total segment gross profit                     92,113                              74,365                              247,361    210,049

    Inventory step-up                                        -                                  -                             (1,199)     (138)

    Accelerated depreciation and restructuring related   (149)                              (321)                               (791)   (1,003)
                                                          ----                                ----                                 ----     ------

         Total gross profit                                       $91,964                                        $74,044                 $245,371  $208,908
                                                                  =======                                        =======                 ========  ========


    Segment operating income

    EMEA                                                          $23,565                                        $20,222                  $61,537   $47,888

    Americas                                            11,257                               5,340                               24,889     18,977

    APAC                                                 3,328                               2,738                                9,870      8,231
                                                         -----                               -----                                -----      -----

    Total segment operating income                      38,150                              28,300                               96,296     75,096

    Corporate                                          (9,752)                            (6,192)                             (24,149)  (19,651)

    Costs related to acquisitions                        (888)                              (849)                             (3,377)   (1,837)

    Restructuring and related costs                    (2,160)                            (3,166)                              (8,322)   (6,772)

    Accelerated depreciation                                 -                              (265)                               (108)     (947)

    Asset impairment                                         -                            (1,121)                                (104)   (1,619)

    Curtailment gain (loss)                                  -                                  -                                   -     (333)

    Inventory step-up                                        -                                  -                             (1,199)     (138)
                                                           ---                                ---                              ------       ----

    Operating income                                    25,350                              16,707                               59,037     43,799

    Interest expense, net                              (1,365)                            (1,785)                              (5,901)   (5,151)

    Foreign currency transaction gains (losses)             28                               (139)                             (2,120)     (676)

    Other income (expense), net                            (4)                                 27                                  267        374
                                                           ---                                 ---

    Income from continuing operations before taxes                $24,009                                        $14,810                  $51,283   $38,346
                                                                  =======                                        =======                  =======   =======


    Capacity utilization

    EMEA                                                   87%                                81%                                 84%       77%

    Americas                                               67%                                67%                                 65%       65%

    APAC                                                   73%                                66%                                 71%       69%

    Worldwide                                              77%                                74%                                 74%       71%

SOURCE A. Schulman, Inc.