Omnova Posts Small Loss in First Quarter

Fairlawn, OH, March 17, 2009--Chemicals company Omnova Solutions said that its first-quarter loss was about $100,000, compared with a loss of $3 million, or $0.07 a share, in the same quarter of 2008.

Omnova said that its first-quarter sales for the period ended Feb. 28 were $160.2 million, a 15.9 percent drop from sales of $190.6 million in last year's first quarter.

The sales decline resulted from weaker volumes "as customers took significant downtime to reduce inventories early in the quarter," the company said in a press release.

Kevin McMullen, Omnova's chairman and chief executive officer, said that while the company was operating in a "very challenging global economy," it also has benefited from lower raw materials costs that could reduce expenses through the remainder of the year.