Omnova Sees Earnings Slide in Third Quarter

Fairlawn, OH, Sept. 17, 2008--Omnova Solutions Inc. reported net income of $3.1 million, or $0.07 per  share, for the third quarter ended Aug. 31 compared to net income of $4.5 million, or $0.11 per share, for the third quarter of 2007.

Included in the third quarter of 2008 were restructuring and severance charges of $400,000 compared to restructuring and severance charges of $100,000 in the third quarter of 2007.

Net sales increased $42.7 million, to $239.5 millioncompared to $196.8 million a year ago. Contributing to the third quarter increase were sales of $28.1 million from the Decorative Products Asian businesses acquired in the first quarter.

"Pricing actions late in the second quarter and throughout the third quarter enabled us to achieve significant improvement in profitability as compared to the first half of the year. During the quarter, we experienced new record high costs for Omnova's major raw materials, along with higher utility and transportation costs, which required us to respond with critical pricing actions," said CEO Kevin McMullen.