Omnova Solutions Lowers Earnings Estimates

Fairlawn, OH, Aug. 31, 2011 -- Omnova Solutions said it is revising its 2011 full year adjusted earnings estimate.

The company now expects earnings per share for the fiscal year ending November 30 to be between $0.40 and $0.44, as compared to its prior estimate of approximately $0.60 provided during its second quarter earnings call in June.

The updated estimate reflects a reduction in market volumes resulting from a deceleration in the global economy in the third quarter, as well as the rapid escalation in raw material costs to unprecedented highs.

Omnova said that second half volumes in Performance Chemicals are expected to be down 4-5%, as compared to 2010, driven primarily by weaker paper and carpet markets.