Omnova Solutions Posts 2Q Loss

Fairlawn, OH, June 20, 2007--Omnova Solutions swung to a loss in the second quarter as debt redemption costs offset revenue growth.

For the quarter ended May 31, Omnova posted a loss of $9.8 million, or $0.23 per share, compared with a profit of $5.3 million, or $0.13 per share, for the same quarter in 2006.

The recent quarter's results included debt redemption costs of $12.4 million and restructuring and severance costs of $100,000. Excluding those charges, the company posted an adjusted profit of $2.7 million, or $0.07 per share.

Analysts were expecting earnings per share of $0.08.

Revenue rose 5.7 percent to $188 million from $177.8 million in the year-ago period.

Gross profit margins declined to 19.7 percent from 23 percent. The company attributed the drop in gross profit to higher raw material, transportation and manufacturing costs.