OMNOVA Solutions Q2 Profit Rises, Despite Lower Sales - Quick Facts

(RTTNews) - OMNOVA Solutions Inc. (OMN), a provider of emulsion polymers, specialty chemicals and decorative and functional surfaces, reported Wednesday that its second -quarter net income grew to $3.4 million or $0.07 per share from last year's $2.9 million or $0.06 per share.

Adjusted income from continuing operations was $4.0 million or $0.09 per share, compared to $7.2 million or $0.16 per share last year.

On average, four analysts polled by Thomson Reuters expected earnings of $0.19 per share. Analysts' estimates typically exclude special items.

Net sales decreased 1.6 percent to $266.4 million from $270.8 million a year ago. The sales decline was a result of reduced pricing of 3.5 percent, which was partially offset by volume increases of 1.6 percent, and favorable currency translation effects, the company said.

Kevin McMullen, Chairman and Chief Executive Officer, said, "Overall, second quarter results were below what we had expected. Positive items included improved Performance Chemicals volumes and strong laminates sales in Engineered Surfaces, but these were offset by approximately $2.5 million of negative operating profit impact from temporary customer-driven delays in shipments and higher logistics costs. Weaker Asian demand and competitive challenges in our North American Performance Materials products also had an adverse profit impact versus last year."

Performance Chemicals volumes in the second quarter increased 3.6 percent on a year-over-year basis.