OMNOVA Solutions Inc.
recently reported net income of $11.1 million, or $0.25 per diluted share, for
its fourth quarter ended November 30, 2009, compared to net income of $0.8
million, or $0.02 per diluted share, for the fourth quarter of 2008. Included
in the fourth quarter of 2009 were restructuring, severance, asset impairment
and other charges of $0.4 million, compared to $0.3 million in the fourth
quarter of 2008.
Net sales decreased $30.8
million, or 14.0%, to $188.8 million for the fourth quarter of 2009, compared
to $219.6 million for the fourth quarter of 2008. The fourth quarter
decrease in sales was the result of lower selling prices of $30.1 million and
foreign currency translation effects of $1.1 million, partially offset by
improved volume of $0.4 million, which included market share gains and penetration
into new adjacent markets. Gross profit improved to $44.0 million, with
margins of 23.3%, in the fourth quarter of 2009, compared to $34.6 million, and
margins of 15.8%, in the fourth quarter of 2008. The margin improvement was
primarily due to lower raw material costs and reduced manufacturing expenses.
"Our
strong fourth quarter performance caps off a year in which the company made
enormous progress on many fronts, despite one of the worst global recessions in
many decades,” said Kevin McMullen, OMNOVA Solutions' chairman and CEO. “During
the quarter, (our) team of 2,300 associates executed a number of profitable
initiatives including the commercialization of innovative new products;
penetration of new adjacent markets; broad-based cost reductions, which now
total over $24 million for the year; effective global raw material sourcing; and
improved pricing strategies."
For more information, visitwww.omnova.com.
OMNOVA Solutions Reports Record Fourth Quarter Earnings
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