OMNOVA Net Sales Up 1.5%
OMNOVA Solutions Inc. recently announced income from continuing operations of $10.7 million for the first quarter ended February 29, 2012. Net income for the first quarter was $12.7 million, which includes income of $2 million from discontinued operations resulting from a gain on the sale of a discontinued wall covering business of $6 million. This was partially offset by wall covering-related operating losses and transition expenses of $4 million during the quarter.
Net sales increased $4 million, or 1.5%, to $275.9 million for the first quarter of 2012, compared to $271.9 million for the first quarter of 2011. The sales increase was reportedly driven by improved pricing of $24.2 million to cover higher raw material costs and favorable product mix, which was partially offset by volume decreases and unfavorable currency translation effects.
“The first quarter 2012 operating profit improved vs. the first quarter of last year and sequentially from the fourth quarter of 2011,” said Kevin McMullen, chairman and CEO. “First quarter raw material costs started at relatively low levels, but increased throughout the quarter. However, due to pricing actions, an improved sales mix of higher margin products, benefits from our global manufacturing footprint and continued productivity improvements, profits increased despite softness in market demand. We also generated positive cash flow during the quarter and increased our cash balance $21 million to over $124 million.”
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