OMNOVA Profit In Line With Estimates

(RTTNews) - OMNOVA Solutions Inc (OMN) on Tuesday reported second-quarter net income of $3.9 million or $0.09 per share compared with $3.4 million or $0.07 per share last year.

Excluding items, adjusted earnings were $0.11 per share compared with $0.09 per share a year ago.

Analysts polled by Thomson Reuters estimated earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.

The company said the increase was driven primarily by margin expansion in the Performance Chemicals and Engineered Surfaces segments, and favorable net inventory valuation adjustments in Performance Chemicals.

Meanwhile, the company's sales for the quarter fell to 17.3% to $220.2 million from $266.4 million last year.The decrease was due to reduced pricing, unfavorable currency translation effects, and lower sales volume, primarily in paper, carpet, oil & gas and coated fabrics.

Gross margin improved to 24 from 19.7% last year.

The company said it continues to expect significant growth in adjusted earnings per share for the fiscal year 2015.