27 June 2013 13:24 [Source: ICIS news]
HOUSTON (ICIS)--OMNOVA Solution’s second-quarter net income fell by almost 59% year on year to $2.9m (€2.2m), with sales down 12% to $207.8m, the US-based producer of emulsion polymers, specialty chemicals and functional surfaces said on Thursday.
After excluding one-time costs related to restructuring, manufacturing transition and refinancing, adjusted income from continuing operations for the three months ended 31 May was $7.1m, compared with adjusted income of $8.3m in the same period a year ago.
The sales decline was driven by lower volume, as well as reduced pricing and unfavourable currency translation effects, OMNOVA said.
Second-quarter gross profit fell to $57.3m, from $60.0m in the year-earlier period, due primarily to the lower volumes. However, second-quarter gross profit margins improved to 21.2%, from 19.5%, because of a better product mix and cost reductions.
OMNOVA said that on a sequential comparison, second-quarter sales and adjusted operating profits improved from the first quarter.
CEO Kevin McMullen said that the sequential improvement was broad-based across most OMNOVA’s performance chemicals and engineered surfaces product lines.
"Higher volumes, cost reduction actions and a favourable mix of business drove the sequential improvement," McMullen said.
"We are seeing encouraging signs from key end markets in which we are well positioned such as housing, oil and gas exploration, personal hygiene and transportation," he added.
($1 = €0.77)
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