OMNOVA Solutions Inc. recently announced its intention to establish a new reporting structure with two reporting segments: one focused on OMNOVA’s specialty businesses and one on the company’s more mature businesses. The businesses included in the current Performance Chemicals and Engineered Surfaces reporting segments will be folded into the new segments. The company reportedly expects to finalize and begin reporting under the new structure in its fiscal 2017 second quarter.
“These new segments reflect our strategy to proactively drive profitable growth and continue on our path to a premier, global, innovative, specialty solutions provider,” said Anne Noonan, president and CEO. Noonan was appointed president and CEO on December 1, 2016, which is the beginning of the 2017 fiscal year.
The specialty segment reportedly will include OMNOVA’s higher-growth business lines, which serve markets and applications where specialization is required, with the potential for sustainable operating profit margins in the high teens. This business group is likely to include coatings, adhesives, sealants and elastomers (CASE), nonwovens, laminates and films, and oil and gas additives.
The second segment will include those businesses that serve mature markets where OMNOVA has positions with established product brands. The primary goal of these businesses reportedly will be to continue to grow operating profit, expand margins, increase cash generation, optimize product mix, and provide selective innovation to maintain their leading positions. This group is likely to include coated fabrics, paper and carpet chemicals, tire cord, and various individual product lines.
For more information, visit www.omnova.com.