Fairlawn, OH, May 9--Omnova Solutions Inc. expects to report a fiscal second-quarter loss of $4 million to $5.9 million, hurt by several charges due to refinancing and restructuring.
On a per-share basis, the building materials maker expects a loss of 10 cents to 15 cents a share for the quarter In a press release Thursday, the company said the unusual charge is for the noncash write-off of existing deferred financing costs in conjunction with the company's planned refinancing activities, plus costs associated with a previously announced workforce reduction and the closure of a design center building. These items are offset by an anticipated gain on the sale of the building.
Excluding the unusual charges of about $3.4 million, Omnova expects a loss of roughly $600,000 to $2.5 million, or 1 cent to 6 cents a share. The company anticipates second-quarter sales of about $173 million to $177 million, compared to $175 million reported in the year-ago period.
In the year-ago second quarter ended May 31, the company reported a bottom line profit of 14 cents a share and operating earnings of 9 cents a share.
Omnova said the cost reduction actions it began in the first quarter are starting to provide benefits. The company expects further operating profit improvement in May as the costs of its raw materials begin to decline.
