• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Omnova Solutions Q2 FY'13 sales fall 11.9%

27 Jun '13
4 min read

OMNOVA Solutions Inc. announced income from continuing operations of $2.6 million, or $0.06 per diluted share, for the second quarter ending May 31, 2013.  Net income for the second quarter was $2.9 million or $0.06 per diluted share.

Included in the second quarter results were one-time costs related to restructuring, manufacturing transition, refinancing activities and other items which totaled $6.4 million pre-tax. Excluding these items, Adjusted Income from Continuing Operations was $7.1 million or $0.16 per diluted share compared to $8.3 million or $0.18 per diluted share a year ago.

Highlights:

For the second quarter of 2013, the Company reported income from continuing operations of $2.6 million or $0.06 per diluted share.

Adjusted Income from Continuing Operations for the second quarter of 2013 was $7.1 million, or $0.16 per diluted share, compared to $8.3 million, or $0.18 per diluted share, for the second quarter of 2012.

Gross profit margins improved to 21.2% in the second quarter of 2013 as compared to 19.5% a year ago, due to favorable product mix and cost reduction actions.

Sequential results were significantly better than the first quarter of 2013 as second quarter 2013 net sales grew $19.1 million, Adjusted Segment Operating Profit increased $6.6 million, and Adjusted Segment Operating Profit margins improved by 200 basis points to 8.7% as compared to the first quarter of 2013.

As a result of anticipated sequential improvement in the second half of 2013, the Company forecasts that full-year 2013 Adjusted Income from Continuing Operations is expected to exceed 2012 results.

Consolidated Results for the Second Quarter Ending May 31, 2013

Net sales decreased $36.7 million, or 11.9%, to $270.8 million for the second quarter of 2013, compared to $307.5 million for the second quarter of 2012.  The sales decrease was driven by lower volume of $16.9 million, or 5.5%, reduced pricing of $18.6 million, or 6.0%, and unfavorable currency translation effects of $1.2 million.  However, sequential net sales improved by $19.1 million or 7.6% as compared to the first quarter of 2013.

Gross profit in the second quarter of 2013 decreased to $57.3 million, compared to $60.0 million in the second quarter of 2012, due primarily to the lower volumes.  Raw material costs declined $13.5 million in the second quarter versus the same period last year. 

Gross profit margins in the second quarter of 2013 improved to 21.2%, compared to margins of 19.5% in the second quarter of 2012.  The increase was due to better product mix and cost reduction actions. As compared to the first quarter of 2013, gross profit improved by $8.3 million and gross profit margins increased 170 basis points.

Selling, general and administrative expense (SG&A) in the second quarter of 2013 was $31.2 million, or 11.5% of sales, compared to $32.2 million, or 10.5% of sales, in the second quarter of 2012.  The $1.0 million improvement was due to lower employee expenses and a reduction in discretionary spending.

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search