Home / Knowledge / News / Textiles / Carpet volumes up slightly, OMNOVA Solutions
Carpet volumes up slightly, OMNOVA Solutions
25
Mar '10
OMNOVA Solutions Inc reported net income of $7.8 million, or $0.17 per diluted share, for the first quarter ended February 28, 2010, compared to a net loss of $0.1 million, or breakeven per diluted share, for the first quarter of 2009. Included in the first quarters of 2010 and 2009 were restructuring and severance charges of $0.3 million and $0.9 million respectively.

Net sales increased $23.7 million, or 14.8%, to $183.9 million for the first quarter of 2010, compared to $160.2 million for the first quarter of 2009. The first quarter increase in sales was the result of improved volumes of $18.7 million, higher selling prices of $3.1 million and foreign currency translation effects of $1.9 million. Gross profit improved to $40.0 million, with margins of 21.8%, in the first quarter of 2010, compared to $31.7 million, and margins of 19.8%, in the first quarter of 2009. The increase in gross profit was primarily due to higher volumes.

"OMNOVA's strong first quarter, which began December 1 and seasonally is our weakest, is indicative of the fundamental improvements we have made in our Company and the consolidation that is occurring in our industries. Our first quarter performance continues a very positive trend which began in the second half of 2008. The Company has made significant progress on many fronts, including the introduction of numerous innovative products, penetration into new, adjacent markets, the continued globalization of our business along with aggressive productivity gains and cost reductions," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer.

"This is the fifth consecutive quarter of earnings improvement and the second consecutive quarter of volume improvement. The volume expansion was broad based as both of our segments achieved volume growth in the quarter, and our growth has accelerated over the last few months as the economy begins to rebound. After spending several years improving our cost structure in the face of reduced market demand, we expect to have strong operating leverage moving forward as volumes continue to outpace last year's levels," McMullen added.

During the quarter, paper and specialty volumes increased double digits as compared to a year ago, while carpet volumes were up slightly. The Company's industry-leading technology led to new business wins in most of its markets. Additionally, several customers restarted production lines that had been idled in 2009. February was the seventh consecutive month of year-over-year volume growth. The Company expects continued increases in Performance Chemicals volumes as the economy improves.

OMNOVA Solutions Inc


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Prathyusha Garimella
Prathyusha Garimella

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

Mike Hoffman
Gildan Activewear SRL

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

Sonam & Paras Modi
SVA

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

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

July 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

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

Yes No

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

Yes No

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


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



X