OMNOVA Solutions Inc. has announced net income of $81.5 million for the fourth quarter ended November 30, 2010, compared to net income of $11.1 million for the same quarter of 2009. Included in the fourth quarter of 2010 were a number of unusual items, including non-cash income of $90.5 million, or $2.01 per share, primarily due to the reversal of a tax valuation allowance of $98.2 million; expenses of $13.7 million, or $(0.30) per share, related to the acquisition of Eliokem; and other unusual items totaling $3.5 million, or $(0.09) per share. Excluding these items, adjusted net income for the fourth quarter 2010 was $8.2 million.
“Our fourth quarter marks the end of a very successful year for OMNOVA Solutions,” said Kevin McMullen, chairman and CEO. “The company’s Performance Chemicals segment closed the year with record segment operating profit. This was partially offset by weaker results in our Decorative Products segment, which was impacted by rapidly rising raw material costs and continued weak demand in certain product lines. Cash flow was strong for the quarter and the year, and improvements in our balance sheet were instrumental in providing the financial flexibility to complete the Eliokem acquisition early in our fiscal 2011 first quarter. While challenges remain, we have made significant progress on many fronts, including the introduction of numerous innovative products, penetration into new, adjacent markets, the accelerated globalization of our business, and aggressive productivity gains and cost reductions.”
For additional details, visitwww.omnova.com.