Home / Knowledge / News / Textiles / Omnova Solutions Q3 FY'13 sales down 9.4%
Omnova Solutions Q3 FY'13 sales down 9.4%
30
Sep '13
OMNOVA Solutions Inc. announced income from continuing operations of $9.0 million, or $0.19 per diluted share, for the third quarter ending August 31, 2013.  This compares to third quarter 2012 income from continuing operations of $6.9 million, or $0.15 per diluted share.

Highlights:

- For the third quarter of 2013, the Company reported improved income from continuing operations of $9.0 million, or $0.19 per diluted share, compared to $6.9 million, or $0.15 per diluted share for the third quarter of 2012.

- Gross profit margins increased to 20.9% in the third quarter of 2013 as compared to 20.1% a year ago, due to favorable product mix and cost reduction actions.

- Strong cash flow in the quarter resulted in a Net Debt reduction of $22.4 million.

- Full-year 2013 Adjusted Income from Continuing Operations is expected to approximate 2012 levels.

Consolidated Results for the Third quarter Ending August 31, 2013

Net sales decreased $27.0 million, or 9.4%, to $261.2 million for the third quarter of 2013, compared to $288.2 million for the third quarter of 2012.  The sales decrease was driven by lower volume of $10.0 million, or 3.5%, and reduced pricing of $18.7 million, or 6.5%, partially offset by favorable currency translation effects of $1.7 million.

Gross profit in the third quarter of 2013 decreased to $54.7 million, compared to $57.8 million in the third quarter of 2012, due to the lower volumes and pricing.  Raw material costs declined $15.8 million in the third quarter versus the same period last year.  Gross profit margins in the third quarter of 2013 improved to 20.9%, compared to margins of 20.1% in the third quarter of 2012.  The increase was due to better product mix and cost reduction actions.

Selling, general and administrative expense (SG&A) in the third quarter of 2013 was $28.5 million, or 10.9% of sales, compared to $30.4 million, or 10.5% of sales, in the third quarter of 2012.  The $1.9 million improvement was due to lower employee expenses and a reduction in discretionary spending.

Interest expense in the third quarter of 2013 declined to $7.7 million, a decrease of $1.1 million from the third quarter of 2012, due to lower borrowing spreads as a result of a March 2013 term loan amendment and lower foreign borrowings.

Income tax expense was $3.4 million, representing a 27.4% effective income tax rate, for the third quarter of 2013, compared to income tax expense of $3.4 million, or a 33.0% effective tax rate, in the third quarter of 2012.  The lower rate in 2013 is due primarily to higher income in foreign jurisdictions where the rate is lower than the U.S. statutory rate. 

The Company estimates its full-year 2013 effective rate will be approximately 30%.  Additionally, cash tax payments in the U.S. over the next few years are expected to be minimal as the Company has $114.0 million of U.S. federal net operating loss carryforwards and $90.0 million of state and local tax net operating loss carryforwards with expiration dates between 2022 and 2033.

Net income for the third quarter of 2013 was $9.0 million, or $0.19 per diluted share, compared to net income of $6.4 million, or $0.14 per diluted share, for the third quarter of 2012.

Click here to read full results

Omnova Solutions


Must ReadView All

GMAC urges Cambodia to push fabric-forward rule in RCEP

Apparel/Garments | On 17th Oct 2017

GMAC urges Cambodia to push fabric-forward rule in RCEP

Representatives from the Garment Manufacturers Association of...

Alibaba to invest $15 billion in DAMO Academy for research

Textiles | On 17th Oct 2017

Alibaba to invest $15 billion in DAMO Academy for research

Alibaba will invest $15 billion over the next several years in its...

Pressure on  Indian textiles exporters to ease by Q3: ICRA

Textiles | On 17th Oct 2017

Pressure on Indian textiles exporters to ease by Q3: ICRA

Pressures on the profit and debt levels of textiles exporters is...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search