Home / Knowledge / News / Textiles / OMNOVA reports record Q4 earnings to cap off strong year
OMNOVA reports record Q4 earnings to cap off strong year
19
Jan '10
OMNOVA Solutions Inc. reported net income of $11.1 million, or $0.25 per diluted share, for the fourth quarter ended November 30, 2009, compared to net income of $0.8 million, or $0.02 per diluted share, for the fourth quarter of 2008. Included in the fourth quarter of 2009 were restructuring, severance, asset impairment and other charges of $0.4 million, compared to $0.3 million in the fourth quarter of 2008.

Net sales decreased $30.8 million, or 14.0%, to $188.8 million for the fourth quarter of 2009, compared to $219.6 million for the fourth quarter of 2008. The fourth quarter decrease in sales was the result of lower selling prices of $30.1 million and foreign currency translation effects of $1.1 million, partially offset by improved volume of $0.4 million which included market share gains and penetration into new adjacent markets.

Gross profit improved to $44.0 million, with margins of 23.3%, in the fourth quarter of 2009, compared to $34.6 million, and margins of 15.8%, in the fourth quarter of 2008. The margin improvement was primarily due to lower raw material costs and reduced manufacturing expenses.

"Our strong fourth quarter performance caps off a year in which the Company made enormous progress on many fronts, despite one of the worst global recessions in many decades. During the quarter, OMNOVA's team of 2,300 associates executed upon a number of profitable initiatives including the commercialization of innovative new products, penetration of new adjacent markets, broad based cost reductions which now total over $24 million for the year, effective global raw material sourcing, and improved pricing strategies," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer.

"These actions contributed to record earnings and cash flow generation for the quarter and the year and create a strong foundation for the future. While economic uncertainties remain, including inflationary threats for some of our raw materials, we are encouraged as we enter 2010. Demand across most of our markets is improving, as volumes were positive year-over-year in the fourth quarter, and the Company is in the strongest financial position in our history," McMullen added.

• Net income was $11.1 million, up $10.3 million compared to the fourth quarter of 2008.
• Diluted earnings per share was $0.25, an improvement of $0.23 per share compared to the fourth quarter of 2008.
• Volumes increased modestly compared to last year, reversing a trend of six consecutive quarterly declines.
• Segment operating profit was $17.6 million, an increase of $12.7 million over the fourth quarter of 2008.
• Net Debt was $111.2 million, a decline of $11.5 million during the quarter, with the leverage ratio improving to 2.0 versus 2.3 in the third quarter of 2009.
• Fiscal 2009 cost reduction action increased to over $24 million.

Click here for more details.

OMNOVA Solutions Inc


Must ReadView All

Turkish-Algerian JV to set up textile unit in Relizane

Textiles | On 17th Jan 2018

Turkish-Algerian JV to set up textile unit in Relizane

Construction of one of Africa's largest textile production...

Courtesy: Indorama Ventures

Textiles | On 17th Jan 2018

IVL, Huvis to enter JV for Low Melting Fibre plant in US

Indorama Ventures Limited (IVL), a global chemical producer, and...

Future Group to set up garment manufacturing in Bengal

Apparel/Garments | On 17th Jan 2018

Future Group to set up garment manufacturing in Bengal

Kishore Biyani-led Future Group is going to set up a garment...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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

January 2018

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
68.8%
No
13.5%
Skip
17.7%

Total Votes: 96

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
63.5%
No
29.2%
Skip
7.3%

Total Votes: 96

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
87.5%
No
9.4%
Skip
3.1%

Total Votes: 96

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
82.3%
No
8.3%
Skip
9.4%

Total Votes: 96


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