OMNOVA Solutions Reports Record Fourth Quarter Earnings
Net sales decreased $30.8 million, or 14.0%, to $188.8 million for the fourth quarter of 2009, compared to $219.6 million for the fourth quarter of 2008. The fourth quarter decrease in sales was the result of lower selling prices of $30.1 million and foreign currency translation effects of $1.1 million, partially offset by improved volume of $0.4 million, which included market share gains and penetration into new adjacent markets. Gross profit improved to $44.0 million, with margins of 23.3%, in the fourth quarter of 2009, compared to $34.6 million, and margins of 15.8%, in the fourth quarter of 2008. The margin improvement was primarily due to lower raw material costs and reduced manufacturing expenses.
"Our strong fourth quarter performance caps off a year in which the company made enormous progress on many fronts, despite one of the worst global recessions in many decades,” said Kevin McMullen, OMNOVA Solutions' chairman and CEO. “During the quarter, (our) team of 2,300 associates executed a number of profitable initiatives including the commercialization of innovative new products; penetration of new adjacent markets; broad-based cost reductions, which now total over $24 million for the year; effective global raw material sourcing; and improved pricing strategies."
For more information, visit www.omnova.com.