30 September 2013 15:52 [Source: ICIS news]
HOUSTON (ICIS)--OMNOVA’s fiscal Q3 net income jumped almost 41% year over year, thanks to decreased cost of sales, the US-based specialty chemical producer announced on Monday.
Net income in the third quarter of 2013 increased to $9.0m (€6.7m) from $6.4m in Q3 2012.
For the nine months of the fiscal year ended 31 August, net income is down year over year to $11.7m from $26.9m in 2012.
Better performance in two key sectors helped increase net income for the quarter, said Kevin McMullen, OMNOVA’s chairman and CEO.
"Our financial results in the third quarter of 2013 improved on both a sequential basis and as compared to last year. A favourable mix of business and cost reduction actions contributed to the improvement, while we generated the best volumes of fiscal 2013 in Performance Chemicals and the highest quarterly operating profit in Engineered Surfaces since 2000,” he said.
Net sales in Q3 2013 fell almost 9.4% year over year to $261.2m from $288.2m in Q3 2012. But cost of sales decreased about 10.4% year over year to $206.5m from $230.4m.
OMNOVA expects Q4 financial results to “significantly” higher than 2012’s Q4 earnings and similar to Q3 2013, McMullen said.
"We continue to work on a number of key structural improvements in Performance Chemicals that should positively contribute to future results, including the recent start-up of new specialty chemicals capacity in China, emulsion manufacturing footprint consolidation in the US and several exciting new product launches,” the CEO said.
“Engineered Surfaces is benefitting from the sale of the commercial wall-covering business, the completed manufacturing consolidation earlier in the year and growth in the U.S. housing [and] refurbishment markets,” McMullen said. “In addition to the rebound in housing, there are encouraging signs in other key end markets in which we are well positioned such as oil and gas exploration, personal hygiene and transportation.”
($1 = €0.74)
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