UPDATE: A. Schulman Cuts Net Income Guidance For Fiscal 2011

A. Schulman, Inc. SHLM announced today that it is updating its adjusted net income guidance to between $50 million and $52 million for its fiscal year ending August 31, 2011. The Company had previously guided to the lower end of its prior range of between $57 million and $62 million. The change in guidance was driven primarily by two special charges that will negatively impact fiscal 2011 fourth-quarter and full-year results: In the fourth quarter, the Company expects to take a pre-tax charge of approximately $3 million related to a settlement involving a business relationship. This settlement satisfies all outstanding claims. The Company will also take a non-cash charge of approximately $2 million, pre-tax, as a result of management's decision to harmonize its global excess and obsolete inventory reserve methodology to eliminate differences between business units. Although discretionary, the Company chose to take the action in the fourth quarter as it finalized its development of a consistent methodology during the quarter. Joseph M. Gingo, Chairman, President and Chief Executive Officer, said, "Operationally, we are delivering on our commitment expressed in the prior guidance we provided in early July; however, the special charges will impact our results. Despite the weakening global environment, particularly in Europe, our balance sheet is strong and we will continue to execute on our strategy and take ongoing proactive steps, such as the recently announced realignment of our North American Engineered Plastics business, to prudently manage our business during this period of volatility."