OMNOVA Solutions Inc. recently announced net income of $6.2 million for the second quarter ended May 31, 2011, compared to net income of $15.1 million for the second quarter of 2010. Net sales increased $103.5 million, or 45.7%, to $329.9 million for the second quarter of 2011, vs. $226.4 million for the 2010 second quarter. The sales improvement was reportedly driven by $94.8 million of revenues from the ELIOKEM acquisition, along with increased OMNOVA legacy sales of $8.7 million. The higher OMNOVA legacy sales resulted from price increases of $22.5 million and $3 million of favorable currency translation effects, which were partially offset by volume decreases of $16.8 million.
“The company faced stiff headwinds in the second quarter with record high raw material costs, weaker demand in certain end-use markets and start-up costs for a new plant in China,” said Kevin McMullen, chairman and CEO. “In the face of these market challenges, our second quarter results, while below our prior expectations, reflect the company’s improved, more robust and global business model.”
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OMNOVA Reports $6.2 Million Second Quarter Net Income
July 7, 2011