OMNOVA Solutions Second Quarter Sales Fall 11%
OMNOVA Solutions Inc. recently announced income from continuing operations of $2.6 million for the second quarter ending May 31, 2013. Net income for the second quarter was $2.9 million. Net sales decreased $36.7 million, or 11.9%, to $270.8 million for the second quarter of 2013, compared to $307.5 million for the second quarter of 2012. The sales decrease was reportedly driven by lower volume of $16.9 million, or 5.5%, reduced pricing of $18.6 million (or 6%), and unfavorable currency translation effects of $1.2 million. However, sequential net sales improved by $19.1 million or 7.6% as compared to the first quarter of 2013.
Gross profit in the second quarter of 2013 decreased to $57.3 million, compared to $60 million in the second quarter of 2012, due primarily to the lower volumes. Raw material costs declined $13.5 million in the second quarter vs. the same period last year. Gross profit margins in the second quarter of 2013 improved to 21.2%, compared to margins of 19.5% in the second quarter of 2012. The increase was reportedly due to better product mix and cost reduction actions. Compared to the first quarter of 2013, gross profit improved by $8.3 million and gross profit margins increased 170 basis points.
“As we expected, adjusted segment operating profit results in our second quarter of 2013 improved significantly on a sequential basis as compared to the first quarter,” said Kevin McMullen, chairman and CEO. “This improvement was broad-based across most Performance Chemicals and Engineered Surfaces product lines. Higher volumes, cost reduction actions and a favorable mix of business drove the sequential improvement.”
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