OMNOVA Solutions Reports Strong Third Quarter Results (9/30/09)
Net sales decreased $53.4 million, or 22.3%, to $186.1 million for the third quarter of 2009, compared to $239.5 million for the third quarter of 2008. The third quarter decrease in sales was the result of lower selling prices and weak market demand, which were partially offset by market share gains and penetration into new adjacent markets. Gross profit improved to $44.0 million, with margins of 23.6%, in the third quarter of 2009, compared to $39.1 million, and margins of 16.3%, in the third quarter of 2008. The margin improvement was due primarily to lower raw material costs and reduced manufacturing expenses.
"Our improved third quarter performance reflects the impact from a number of positive ongoing actions being taken by the company, including broad-based cost reductions now totaling more than $23 million for the year, effective raw material sourcing and commercialization of innovative new products," said Kevin McMullen, OMNOVA Solutions' chairman and chief executive officer. "Our Performance Chemicals segment and Decorative Products Asian businesses led the company's overall improvement. The actions taken by the company led to significantly higher earnings and positive cash flow from operations, which allowed us to further reduce our debt and increase the company's financial flexibility.”
For more information, visit www.omnova.com.