OMNOVA Solutions Inc., Fairlawn,
OH, has reported net income of
$10.1 million, or $0.23 per diluted share, for its third quarter ended August
31, 2009, compared to net income of $3.1 million, or $0.07 per diluted share,
for the third quarter of 2008. Included in the third quarter of 2009 were
restructuring and severance charges of $0.3 million, and flood-related expenses
of $0.6 million.
Net sales decreased $53.4 million, or 22.3%, to $186.1 million
for the third quarter of 2009, compared to $239.5 million for the third quarter
of 2008. The third quarter decrease in sales was the result of lower selling
prices and weak market demand, which were partially offset by market share
gains and penetration into new adjacent markets. Gross profit improved to $44.0
million, with margins of 23.6%, in the third quarter of 2009, compared to $39.1
million, and margins of 16.3%, in the third quarter of 2008. The margin
improvement was due primarily to lower raw material costs and reduced
manufacturing expenses.
"Our improved third quarter performance reflects the
impact from a number of positive ongoing actions being taken by the company,
including broad-based cost reductions now totaling more than $23 million for
the year, effective raw material sourcing and commercialization of innovative
new products," said Kevin McMullen, OMNOVA Solutions' chairman and chief
executive officer. "Our Performance Chemicals segment and Decorative Products
Asian businesses led the company's overall improvement. The actions taken by
the company led to significantly higher earnings and positive cash flow from
operations, which allowed us to further reduce our debt and increase the company's
financial flexibility.”
For more information, visitwww.omnova.com.