Omnova Reports Higher Earnings, Lower Sales

Fairlawn, OH, Oct. 6, 2009--Speciality chemicals company Omnova Solutions reported third quarter net income of $10.1 million, or $0.23 per share, compared to net income of $3.1 million, or $0.07 per share, a year ago.

Net sales decreased $53.4 million, or 22.3%, to $186.1 million for the quarter, compared to $239.5 million last year.

The company said that the decrease in sales was the result of lower selling prices and weak market demand, which were partially offset by market share gains and penetration into new adjacent markets.

The company's margins improved due primarily to lower raw material costs and reduced manufacturing expenses.

"Our improved third quarter performance reflects the impact from a number of positive ongoing actions being taken by the Company, including broad-based cost reductions now totaling more than $23 million for the year, effective raw material sourcing and commercialization of innovative new products," said CEO Kevin McMullen.

Omnova's products are used in carpet and adhesives, as well as many other items.