OMNOVA To Incur Upto $4 Mln Profit Reduction On Harvey, Antioxidant Plant Issues

(RTTNews) - OMNOVA Solutions Inc. (OMN) said that, during the fourth quarter, the company expects to incur a $2 million - $4 million operating profit reduction related to Hurricane Harvey and the antioxidant plant start-up issues. The company continues to expect margin expansion from its various strategic initiatives and remains on track to deliver Adjusted Earnings per Share growth in fiscal 2017.

Longer term, we do not expect the hurricane issues to unfavorably impact the business as we are beginning to see momentum resulting from our focus on specialty segments such as the CASE (Coatings, Adhesives, Sealants, Elastomers) space, nonwovens, laminates and flooring," Said Anne Noonan, OMNOVA's President and Chief Executive Officer.

"Additionally, at the end of the third quarter, we experienced start-up issues with recently installed equipment at our Ningbo, China antioxidant plant, which should be resolved during the fourth quarter. Between the hurricane effect and lost sales and higher costs related to these start-up issues, we are expecting a $2-4 million operating profit impact in the fourth quarter," said Anne Noonan.