OMNOVA Solutions Sees 6.3% Sales Decrease in 2012
OMNOVA Solutions Inc. recently announced income from continuing operations of $1.2 million for the fourth quarter ended November 30, 2012. Net income for the fourth quarter was $0.7 million. Net sales decreased $75.6 million, or 6.3%, to $1,125.5 million for 2012, vs. $1,201.1 million for 2011. The sales decrease was reportedly driven by reduced volumes of $60.4 million, or 5%, which was partially offset by price increases of $0.8 million, or 0.1%.
“The fourth quarter results were negatively impacted by weakness in global demand, particularly in Europe and in the North American paper industry, as well as several one-time unusual items,” said Kevin McMullen, chairman and CEO. “During the year, we made structural improvements in our business portfolio, and took many other positive actions that drove continued improvement in our full-year profitability and generated significant cash flow, which allowed us to reduce our net leverage to 2.75 times.”
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