19 January 2010 07:25 [Source: ICIS news]
SINGAPORE (ICIS news)--OMNOVA Solutions said on Tuesday its fourth-quarter to November net profit surged to $11.1m (€7.7m) despite weaker sales as margins significantly improved.
In the same period last year, the company booked a net profit of $800,000.
“The margin improvement was primarily due to lower raw material costs and reduced manufacturing expenses,” OMNOVA said in a statement.
Sales for the September-to-November period declined 14% to $188.8m due largely to lower prices, the company said.
Volume of sales grew during the quarter, reversing six consecutive quarterly declines, the company said.
For the twelve months ending November 2009, OMNOVA reversed into a net profit of $26.2m from a loss of $2.2m a year earlier. Sales, however, declined 20% to $696.4m, the company said.
The company had more than $24m in cost reductions during the year, it added.
“While economic uncertainties remain, including inflationary threats for some of our raw materials, we are encouraged as we enter 2010,” said Kevin McMullen, chairman and CEO at OMNOVA.
“Demand across most of our markets is improving, as volumes were positive year-over-year in the fourth quarter, and the company is in the strongest financial position in our history," he added.
($1 = €0.69)
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