www.bewet.fora.pl

klughvsd56v6

rtech Corp. (SEH) recently reported fiscal 2010 second-quarter results afterward the closing bell. The company’s earnings from chronic operations more than doubled to $4.5 million from $2.1 million in the prior-year quarter. Excluding special items, earnings came in at 13 cents per share [link widoczny dla zalogowanych], lacking the Zacks Consensus Estimate of 19 cents as higher raw material costs and overheads affected margins.
Spartech is an intermediary processor of engineered thermoplastics. The company converts pedestal polymers alternatively resins into extruded plastic sheet and rollstock, thermoformed packaging, specialty membrane laminates, acrylic productions, specialty plastic alloys, color concentrates and blended resin compounds, and injection molded and outline products.
During the quarter, Spartech’s web sales rose 24% to $268.5 million from $216.4 million in the year-ago period. The gain was mainly attributable to a 12% mushroom in volumes [link widoczny dla zalogowanych], paired with higher selling prices as the company passed on higher resin costs to customers.
Segments
Custom Sheet & Rollstock, the flagship division, saw a 30% year-over-year growth in bargains apt $150.6 million driven along a 26% expansion in volumes and a 4% addition in price. Spartech’s Color & Specialty Compound segment’s revenue acquired 29% year-over-year to $63.1 million primarily deserving to 5% and 19% increase in volume and amount, respectively, over the year-ago 15 min. Packaging Technologies division’s revenue increased 6% to $54.9 million deserving to higher prices, which extra than offset the shock of lower volumes.
Margins
Spartech’s gross profit dripped 0.8% year-over-year to $30.9 million, when gross margin fell 290 root points (bps) to 11.5%. The decline was primarily caused by increased resin costs as the company could not pass them fully to buyers in the fashion of higher prices. Selling, general and executive expenses decreased 14.9% year-over-year to $20.5 million, effectively due to unsatisfactory diplomatic money translations. Accordingly, operating earnings declined 8.0% year-over-year to $7.9 million, meantime operating margin dipped 100 bps to />
Balance Sheet & Cash Flow
At quarter end, Spartech had cash and money equivalents of $3.9 million, compared to $2.0 million in the prior-year quarter. Long-term debt-to-capitalization ratio at the end of the quarter was 41.2%, compared 54.0% in the year-ago duration. During the first half of fiscal 2010, the company generated $19.6 million of cash from actions and deployed $49.6 million towards debt repayment and $7.6 million towards chief disbursement.
Outlook and Zacks Consensus
Moving amenable [link widoczny dla zalogowanych], Spartech anticipates proceeded resumption in its major end-markets during the remainder of fiscal 2010, though pricing for resins is probable to reside mercurial in the near term. The Zacks Consensus Estimate ashore the company’s income for the fiscal has declined by 2 pence over the quondam month to 81 cents per share, for 1 of 4 covering analysts downwardly mended estimates. The most exactly estimate is more bearish by 75 cents per share, indicating a downside latent of 7.4% likened to the Zacks Consensus Estimate.