Home / Knowledge / News / Textiles / Net income skyrockets at Omnova Solutions in Q4
Net income skyrockets at Omnova Solutions in Q4
22
Jan '14
OMNOVA Solutions Inc. announced net income of $7.9 million, or $0.17 per diluted share, for the fourth quarter of 2013, compared to $0.7 million, or $0.01 per diluted share, for the fourth quarter of 2012.

Adjusted Income From Continuing Operations was $5.5 million, or $0.12 per diluted share, for the fourth quarter ending November 30, 2013.  This compares to fourth quarter 2012 Adjusted Income From Continuing Operations of $2.5 million, or $0.06 per diluted share.

Fourth Quarter 2013 Highlights

The Company reported net income of $7.9 million, or $0.17 per diluted share for the fourth quarter of 2013, compared to $0.7 million, or $0.01 per diluted share for the fourth quarter of 2012.

The Company's Adjusted Income from Continuing Operations improved to $5.5 million, or $0.12 per diluted share, compared to $2.5 million, or $0.06 per diluted share for the fourth quarter of 2012.

Gross profit was $51.7 million with margins increasing to 22.1% in the fourth quarter of 2013 as compared to $48.5 million, or 19.1% a year ago. The improvement was due to favorable product mix and cost reduction actions.

The Company's segment operating profit was $21.7 million in the fourth quarter of 2013, compared to $15.5 million for the fourth quarter of 2012. Adjusted Segment Operating Profit improved to $19.9 million in the fourth quarter of 2013 from $17.4 million a year ago.

The Company's leverage ratio as measured by Net Debt to Adjusted EBITDA improved from the third quarter of 2013 to under 3.0 times.

"Our financial results in the fourth quarter of 2013 improved as compared to last year, led by stronger results in Engineered Surfaces, which had a favorable mix of business and reduced costs, resulting in its highest quarter and full-year operating profit since 2001. Within Performance Chemicals, the Company's Specialty Chemicals product line had higher volumes and gross profit year-over-year.  However, Performance Materials' (North American paper and carpet chemicals) gross profit was negatively impacted by weaker paper market conditions and competitive pricing pressures," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer.

"We continue to work on a number of key structural improvements in Performance Chemicals that should positively contribute to future results, including the recent startup of new specialty chemicals capabilities in China, styrene butadiene latex capacity rationalization in North America, and several new product launches.  Engineered Surfaces is benefiting from a lower cost structure as the result of a manufacturing footprint consolidation that was completed earlier in the year, and sales growth in the Asian automotive and the U.S. housing / refurbishment markets," said McMullen.

"After a slow start to 2013, our year-over-year results improved throughout the year.  Looking forward, there are encouraging signs in markets where we are well positioned such as oil and gas exploration, automotive and transportation and U.S. construction and refurbishment.  In addition, we look to leverage the cost actions we have implemented and will continue to make to improve our competitive position," McMullen said.

Click here to full results

Omnova Solutions

Must ReadView All

Textiles | On 28th Apr 2017

Fix 5% GST rate for textile goods: Textile bodies

Uniform levy of 5 per cent Goods and Services Tax (GST) on all...

Textiles | On 28th Apr 2017

India lifts CVD imposed on Nepali Jute goods

The countervailing duty (CVD) that was imposed on Nepali jute...

Courtesy: Williamsburg Garment Company

Fashion | On 28th Apr 2017

'We have grown by staying small & maximising efforts'

The easiest way to go out of business is to be too big or expand too...

Interviews View All

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kevin Nelson
TissueGen

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X