OMNOVA Solutions’ Sales Decline in Second Quarter
OMNOVA Solutions Inc. recently announced income from continuing operations of $6.9 million for the second quarter ended May 31, 2012. Net income for the second quarter was $7 million. Net sales decreased $5.3 million, or 1.7%, to $307.5 million for the second quarter of 2012, compared to $312.8 million for the second quarter of 2011. The sales decrease was reportedly driven by a volume decline of $21.1 million and unfavorable currency translation effects of $3.5 million, which was partially offset by improved pricing of $19.3 million to cover higher raw material costs.
“The second quarter 2012 financial results were solid, considering the weak global economy and higher raw material costs,” said Kevin McMullen, chairman and CEO. “The company continued to generate positive cash flow during the quarter and increased our cash balances $9 million to over $133 million. In the second quarter, raw material costs, especially butadiene, increased significantly vs. the first quarter of 2012 and the second quarter of 2011. However, as we enter the third quarter, raw material prices are declining as a result of improved supply and a weaker global economy.”
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