OMNOVA Solutions First Quarter Sales Fall 8%, Income Flat
OMNOVA Solutions Inc. recently announced income from continuing operations of $0.2 million, or breakeven per diluted share, for the first quarter ended February 28, 2013. Net sales decreased $24.2 million, or 8.8%, to $251.7 million for the first quarter of 2013, compared to $275.9 million for the first quarter of 2012. The sales decrease was reportedly driven by lower volume of $19.7 million, or 7.1%, and reduced pricing of $4.7 million, partially offset by favorable currency translation effects of $0.2 million.
Gross profit in the first quarter of 2013 decreased to $49 million, compared to $60.9 million in the first quarter of 2012, reportedly due primarily to the lower volumes. Raw material costs declined $3.1 million in the first quarter vs. the same period last year. Gross profit margins in the first quarter of 2013 were 19.5%, compared to margins of 22.1% in the first quarter of 2012.