Omnova reports fourth quarter loss

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Omnova reports fourth quarter loss
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Monday, January 30, 2012

" s5 y) D6 q0 j& r2 LFairlawn, OH - Omnova Solutions announced a net loss of $10.4 million, or a diluted loss per share of $0.23, for the fourth quarter ended November 30, 2011. Included in the fourth quarter net loss was a loss from discontinued operations of $16.7 million, or a diluted loss per share of $0.37, related primarily to non-cash asset impairment charges of $13.6 million. “Operating profit improved sequentially in the fourth quarter despite continued weakness in market demand,” said Kevin McMullen, Omnova Solutions’ chairman and chief executive officer. “Fourth quarter results were positively impacted by lower raw material input costs, which declined from an all-time high in the third quarter, but were still higher than the prior year. We also generated positive cash during the quarter and increased our cash balance to approximately $106 million. Net sales increased $111.1 million, or 58 percent, to $301.4 million for the fourth quarter of 2011, compared to $190.3 million for the fourth quarter of 2010. Gross profit in the fourth quarter of 2011 increased to $55.8 million, compared to $32.0 million in the fourth quarter of 2010.