Fairlawn, OH, September 20, 2005--Omnova Solutions Inc. posted a profit in the third quarter profit on a 2 percent jump in sales, but the company still fell short of analyst’s estimates.
Earnings in the quarterly were totaled $1.4 million, or $0.03 per share, compared with a loss of $4.2 million, or $0.10 per share, last year. Excluding restructuring and severance charges, the company reported earnings of $0.05 per share.
Sales rose to $207 million from $202.3 million last year. Analysts surveyed by Thomson Financial projected earnings of $0.07 per share.
"The improved results were driven by aggressive cost reductions and increased pricing. We are especially pleased with our SG&A costs reductions, as well as debt reduction resulting from our focus on working capital management," said Chairman and chief executive officer Kevin McMullen in a statement.
Looking ahead, McMullen said Hurricane Katrina resulted in uncertainty regarding energy prices and availability of some raw materials. He said the company is "prepared to meet customer needs" as the Gulf Coast rebuilds, and that he expects the company to be profitable in the fourth quarter.
