OMNOVA's Losses Widen in 1Q
Fairlawn, OH, March 22--OMNOVA Solutions Inc. reported a loss of $10.9 million, or $0.27 per diluted share, for the first quarter of 2005, compared to a loss of $5.8 million, or $0.14 per diluted share, during the first quarter of 2004.
Included in the first quarter of 2005 were charges of $1.7 million related to a work stoppage, and restructuring and severance charges of $4.3 million primarily related to the previously announced decision to exit a wallcovering distribution business.
Net sales increased 17.6%, or $28.1 million, to $188.0 million for the first quarter of 2005 as compared to $159.9 million during the same period a year ago.
Net sales in Performance Chemicals during the first quarter of 2005 increased 27.3% to $102.1 million versus $80.2 million in the first quarter of 2004, led primarily by higher average unit selling price.
During the quarter, Jim Hohman took over leadership of Performance Chemicals after having successfully managed the paper and carpet business lines over the past four years.
By integrating management of the performance chemical business lines under one leader, the company expects to achieve improved results in sales and operating profit from an increased focus on new product development, pricing improvements, and reduced selling, general and administrative expenses.
The company said the carpet product line is developing new opportunities in residential and commercial markets, with strong interest from potential customers, while sales in nonwovens increased by over 30% versus last year on the strength of pricing and new product introductions.