FAIRLAWN, OH - OMNOVA Solutions, a manufacturer of decorative laminates and specialty chemicals, experienced a 59% drop in profits in the second quarter compared to the second quarter of 2012.
OMNOVA posted net earnings of $2.9 million on net rsales of $270.8 million this year's second quarter compared to $7.0 million for the Q2 2012 on net sales of $307.5 million.
The company noted that its second quarter profit results Included one-time costs related to restructuring, manufacturing transition, refinancing activities and other items which totaled $6.4 million pre-tax. Excluding these items, OMNOVA's adjusted income from continuing operations was $7.1 million. In addition, net sales were negatively impacted by the sale of OMNOVA's North American and U.K.-based commercial wallcovering businesses in fiscal 2012,
"As we expected, adjusted segment operating profit results in our second quarter of 2013 improved significantly on a sequential basis as compared to the first quarter.," said Kevin McMullen, OMNOVA Solutions' chairman and CEO. "This improvement was broad-based across most Performance Chemicals and Engineered Surfaces product lines. Higher volumes, cost reduction actions and a favorable mix of business drove the sequential improvement. As previously disclosed, we lost volume in coated paper chemicals late last year, which negatively impacted results in the first half of 2013. However, we have won new commitments that are expected to offset much of the lost volume. Product shipments began to ramp up late in the second quarter with full conversion expected later in the year,"
OMNOVA said because of "anticipated sequential improvement in the second half of 2013," it expects its full-year 2013 adjusted income to exceed 2012 results.