OMNOVA Solutions Inc. announced income from continuing operations of $0.2 million, or breakeven per diluted share, for the first quarter ended February 28, 2013. Net loss for the first quarter was $0.2 million, or breakeven per diluted share. Included in the first quarter results were restructuring, severance, manufacturing transition costs and other items which totaled $1.9 million pre-tax. These were primarily related to the closure of manufacturing operations at a plant, which had previously been disclosed.
- For the first quarter of 2013, seasonally its weakest, the Company reported income from continuing operations of $0.2 million, or breakeven per diluted share.
- Adjusted Income from Continuing Operations for the first quarter of 2013 was $1.5 million, or $0.03 per diluted share, compared to $10.0 million, or $0.22 per diluted share, for the first quarter of 2012
- Growth-oriented capital investments for new and re-purposed global manufacturing capabilities are expected to deliver positive benefits in the second half of 2013.
- Wall covering business exit and coated fabrics manufacturing consolidation were completed in the quarter, with an expected improvement in coated fabrics profit during the remaining three quarters of 2013 as compared to last year.
- The Company expects full-year 2013 Adjusted Income from Continuing Operations to exceed results achieved in 2012.
"As we expected, operating results in our first quarter of 2013, which has been historically our weakest on a seasonal basis, were lower than last year. These results are not reflective of what we anticipate for the rest of the year. As previously disclosed, we lost significant volume in our coated paper chemicals markets late last year, which negatively impacted results in the first quarter.
“However, we have won new commitments that are expected to offset much of the lost volume, with product shipments beginning to ramp up in the second quarter. Additionally, weak volumes in both the European and Indian markets negatively impacted results," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer. "While we had a weak start to the quarter, we were encouraged by the profit trend as the quarter progressed, with February results significantly stronger than the prior two months.
"We have made a number of structural improvements that we expect will begin contributing to increased operating profit during the remainder of the year, including new global manufacturing capability coming online and the completion of the Columbus, Mississippi manufacturing consolidation.
“In addition, we have recent new business commitments from customers and are seeing encouraging signs from key end markets in which we are well positioned such as housing, oil and gas exploration, personal hygiene and transportation. As a result, we expect full-year 2013 Adjusted Income from Continuing Operations will exceed last year's performance," said McMullen.
