OMNOVA Sees Sales Drop in Third Quarter
OMNOVA Solutions Inc. recently announced financial results for the third quarter ended August 31. Net sales were $288.2 million for the quarter, a decline of $26.8 million, or 8.5%, compared to $315 million for the previous year’s third quarter. The decrease was reportedly driven by pricing declines of $14.7 million, or 4.7%, reduced volumes of $4.9 million, or 1.6%, and unfavorable currency translation effects of $7.2 million, or 2.2%.
Gross profit in the 2012 third quarter increased to $57.8 million, vs. $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 2012 third quarter compared to the same period last year.
“The third quarter 2012 results demonstrate ongoing progress by the company,” said Kevin McMullen, chairman and CEO. “During the quarter, we improved earnings vs. 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 vs. the first half of 2012 and the third quarter of 2011, giving us some benefit.”
For additional information, visit www.omnova.com.