OMNOVA Solutions Inc. announced income from continuing operations of $1.2 million, or $0.02 per diluted share, for the fourth quarter ended November 30, 2012. Net income for the fourth quarter was $0.7 million, or $0.01 per diluted share.
Adjusted Income from Continuing Operations for the fourth quarter of 2012 was $3.2 million or $0.07 per diluted share, as compared to $5.9 million, or $0.13 per diluted share last year.
Results in the quarter were negatively impacted by LIFO expense of $1.8 million (net of tax), or $0.04 per diluted share, primarily related to the inventory build for the transition of coated fabrics manufacturing to other, more efficient OMNOVA plants due to the wind-down of manufacturing operations in Columbus, Mississippi.
Fourth Quarter 2012 Highlights
- For the fourth quarter of 2012, the Company reported income from continuing operations of $1.2 million, or $0.02 per diluted share, compared to $6.3 million, or $0.14 per diluted share, in the fourth quarter of 2011.
- Adjusted Income from Continuing Operations for the fourth quarter of 2012 was $3.2 million or $0.07 per diluted share, as compared to $5.9 million, or $0.13 per diluted share last year. Results in the quarter were negatively impacted by LIFO expense of $1.8 million (net of tax), or $0.04 per diluted share.
- The Decorative Products segment name has been changed to Engineered Surfaces to reflect the improved portfolio and importance of innovation and functional performance in the segment's products.
Full Year 2012 Highlights
- Record Segment Operating Profit of $93.4 million in 2012, compared to $85.2 million in 2011.
- Gross profit margins increased to 20.2% versus 18.2% in 2011.
- Record operating profit in the Specialty Chemicals and Laminates product lines.
- Strong cash generation improves balance sheet with a net debt reduction of $49.2 million and a net leverage decline to 2.75 times.
- Portfolio enhancement and manufacturing footprint improvement with the sale of wall covering businesses in 2012 and the coated fabrics manufacturing transition which will be completed in the first quarter of 2013.
