Omnova Solutions Net Income Falls, Sales Rise

Fairlawn, OH, Sept. 30, 2010--Specialty chemicals firm Omnova Solutions reported third quarter net income was $3.5 million, or $0.08 per share, down $6.6 million compared to last year.

Net sales increased $41.8 million, or 22.5%, to $227.9 million for the quarter, compared to $186.1 million for the third quarter of 2009. 

The increase in net sales was the result of improved volumes of $7.4 million and higher selling prices of $35.0 million.

"Our underlying business continued to post strong operating performance considering that results were adversely impacted by nearly $7 million of non-recurring expenses," said CEO Kevin McMullen.

"Overall, volume expansion continued despite weakness in commercial wallcovering and carpet chemicals, which remain impacted by the slow down in commercial and residential construction and refurbishment activity. Specialty chemicals and domestic laminates had double-digit volume gains."

During the quarter, specialty and paper market volumes increased as compared to a year ago, while carpet volumes were down.