OMNOVA Solutions Reports Third-Quarter Results
FAIRLAWN, OH - OMNOVA Solutions Inc.’s income from continuing operations was $6.9 million, or $0.15 per diluted share, for the third quarter ended August 31, 2012. Net income for the third quarter was $6.4 million, or $0.14 per diluted share.
"The third-quarter 2012 results demonstrate ongoing progress by the company. During the quarter, we improved earnings versus a year ago despite lower volumes. Positive changes in our business mix and effective margin management led to the increased earnings, while we also continued to generate strong positive cash flow. In the third quarter, raw material costs, especially butadiene, declined versus the first half of 2012 and the third quarter of 2011, giving us some benefit," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer.
Net sales decreased $26.8 million, or 8.5 percent, to $288.2 million for the third quarter of 2012, compared to $315.0 million for the third quarter of 2011. The sales decrease was driven by pricing declines of $14.7 million, or 4.7 percent, reduced volumes of $4.9 million, or 1.6 percent, and unfavorable currency translation effects of $7.2 million, or 2.2 percent.
Gross profit in the third quarter of 2012 increased to $57.8 million, compared to $50.4 million in the third quarter of 2011, driven primarily by a favorable sales mix. Raw material costs decreased $18.7 million in the third quarter versus the same period last year. Gross profit margins in the third quarter of 2012 were 20.1 percent, compared to margins of 16 percent in the third quarter of 2011.