MoreFAIRLAWN, Ohio -- OMNOVA Solutions Inc. (NYSE:OMN), a manufacturer of specialty chemicals for the floor care, carpet and specialties markets, reported earnings of 6-cents per diluted share for the third quarter of 2001, compared to earnings of 1-cent per diluted share during the third quarter of 2000.
The company is enjoying an operating profit of $10.2 million for the third quarter of 2001. This compares to an operating profit of $8.6 million for the third quarter of 2000. The third quarter operating profit improvement was a result of aggressive cost reductions, performance of recent acquisitions, and lower raw material costs, OMNOVA reported.
"Our third quarter financial results exhibited improvement, both in sales and operating profit as compared to very weak first half results from our continuing operations," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer. "Demand in several of our markets improved slightly and raw material costs moderated. In a very challenging economic and operating environment, we continue to closely manage things under our control, especially expenses and capital expenditures. Restructuring actions taken earlier in the year are improving our profitability, and we were able to reduce our debt by $6.5 million in the quarter.'"
Sales were $199.9 million for the third quarter of 2001, essentially flat as compared to $200.1 million during the same period a year ago, but the strongest quarterly total of the year. Excluding acquisition-related revenues, sales for the current quarter were $189.8 million, down 5 percent versus the third quarter of 2000.
During the third quarter of 2001, Performance Chemicals introduced new products to the floor care, carpet, and specialties markets, including applications utilizing the OMNOVA's proprietary PolyFox fluorochemical technology. The business segment also continues to improve its cost structure for enhanced future financial performance.
OMNOVA Solutions Inc. is a technology-based company with 2000 sales of $773 million and 2,500 employees worldwide. OMNOVA is a major innovator of decorative and functional surfaces, emulsion polymers and specialty chemicals.
