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OMNOVA Solutions to reduce costs & right-size its business
09 Jan '09
2 min read
In an ongoing effort to reduce costs and right-size its business, OMNOVA Solutions Inc announced that it had taken cost reduction actions which are expected to provide $19 million of year-over-year savings in 2009.
"With the highly volatile economic environment, we wanted to provide some perspective on where the Company stands as we enter 2009," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer. "Actions taken in 2008 helped OMNOVA post a profitable second half and fourth quarter despite a weakening global economy. In addition, during the fourth quarter the Company reduced its total debt by $12.1 million, to $188.1 million. These actions strengthen our competitive position and provide positive momentum going into 2009."
Actions include:
-- Aggressive cost reductions company-wide with headcount down 11% in 2008 and early fiscal 2009, as the Company further embraces a lean operating approach and leverages its investment in a recently implemented enterprise- wide business system.
-- Pricing actions to help offset the raw material inflation that remained at historically high levels through the fourth quarter.
-- Aggressive pursuit of reduced raw material costs, led by a reorganized global purchasing team.
-- New business wins driven by innovative new products and penetration of adjacent markets where OMNOVA can leverage its capabilities to deliver value to customers.
OMNOVA Solutions will release earnings on January 20, 2009, for the fourth quarter ending November 30, 2008.
OMNOVA Solutions Inc. is a technology-based company with proforma 2007 sales of $836 million and a current workforce of approximately 2,630 employees worldwide. OMNOVA is an innovator of emulsion polymers, specialty chemicals, and decorative and functional surfaces for a variety of commercial, industrial and residential end-uses.
"With the highly volatile economic environment, we wanted to provide some perspective on where the Company stands as we enter 2009," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer. "Actions taken in 2008 helped OMNOVA post a profitable second half and fourth quarter despite a weakening global economy. In addition, during the fourth quarter the Company reduced its total debt by $12.1 million, to $188.1 million. These actions strengthen our competitive position and provide positive momentum going into 2009."
Actions include:
-- Aggressive cost reductions company-wide with headcount down 11% in 2008 and early fiscal 2009, as the Company further embraces a lean operating approach and leverages its investment in a recently implemented enterprise- wide business system.
-- Pricing actions to help offset the raw material inflation that remained at historically high levels through the fourth quarter.
-- Aggressive pursuit of reduced raw material costs, led by a reorganized global purchasing team.
-- New business wins driven by innovative new products and penetration of adjacent markets where OMNOVA can leverage its capabilities to deliver value to customers.
OMNOVA Solutions will release earnings on January 20, 2009, for the fourth quarter ending November 30, 2008.
OMNOVA Solutions Inc. is a technology-based company with proforma 2007 sales of $836 million and a current workforce of approximately 2,630 employees worldwide. OMNOVA is an innovator of emulsion polymers, specialty chemicals, and decorative and functional surfaces for a variety of commercial, industrial and residential end-uses.
OMNOVA Solutions Inc
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