Omnova Solutions reports sales increase

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Omnova Solutions reports sales increase
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7 M4 a  b& \! u+ }0 L5 ]$ {Thursday, March 22, 2012

0 A0 |7 o1 Z" A; X. ?$ sFairlawn, OH - Omnova Solutions announced income from continuing operations of $10.7 million, or $0.23 per diluted share for the first quarter ended February 29, 2012. Net income for the first quarter was $12.7 million, or $0.28 per diluted share. Net sales increased $4.0 million, or 1.5 percent, to $275.9 million for the first quarter of 2012, compared to $271.9 million for the first quarter of 2011. The sales increase was driven by improved pricing of $24.2 million to cover higher raw material costs and favorable product mix which was partially offset by volume decreases and unfavorable currency translation effects. Gross profit in the first quarter of 2012 increased to $60.9 million, compared to $52.1 million in the first quarter of 2011, due primarily to pricing actions, favorable product mix and productivity improvements. Raw material costs increased $13.9 million in the first quarter versus the same period last year. Gross profit margins in the first quarter of 2012 were 22.1 percent, compared to margins of 19.2 percent in the first quarter of 2011.