OMNOVA Solutions Inc. reported net income of $15.1 million, or $0.33 per diluted share, for the second quarter ended May 31, 2010, compared to net income of $5.1 million, or $0.12 per diluted share, for the second quarter of 2009. Included in the second quarter of 2010 was a net non-operating gain of $2.1 million, compared to a net non-operating expense of $0.8 million in the second quarter of 2009.
Net sales increased $65.1 million, or 40.4%, to $226.4 million for the
second quarter of 2010, compared to $161.3 million for the second quarter
of 2009. The second quarter increase in net sales was the result of improved
volumes of $25.6 million, higher selling prices of $37.5 million and favorable
foreign currency translation effects of $2.0 million. Gross profit
improved to $47.2 million, with margins of 20.8%, in the second quarter of
2010, compared to $40.0 million and margins of 24.8% in the second quarter of
2009. While gross profit dollars improved by 18%, the decline in gross profit
margin was primarily due to higher raw material costs and product mix,
partially offset by higher selling prices.
“OMNOVA’s record second quarter reflects the fundamental improvements we
have made in our company and improving economic conditions,” said Kevin
McMullen, OMNOVA chairman and CEO. “We have made significant progress on
many fronts, including the introduction of numerous innovative products;
penetration into new, adjacent markets; the continued globalization of our
business; and aggressive productivity gains and cost reductions.
“This is the sixth consecutive quarter of year-over-year earnings
improvement and the third consecutive quarter of volume improvement. The volume
expansion was broad-based, as both of our segments achieved over 15% volume
growth in the quarter. Paper and specialty chemicals, domestic laminates and
our Asian businesses led the year-over-year improvement. After spending several
years improving our business model and cost structure in the face of reduced
market demand, we have strong operating leverage as volumes outpaced last year’s
more information, visitwww.omnova.com.
OMNOVA Reports Record Second Quarter Earnings
July 7, 2010