Omnova Solutions posts profit in 4th quarter
Omnova Solutions returns to profit in 4th quarter; revenue falls
FAIRLAWN, Ohio (AP) -- Omnova Solutions Inc. reported a profit in its fourth quarter Tuesday, after posting a loss a year ago, as the chemical maker's tax expenses and losses from discontinued operations declined.
The Fairlawn, Ohio-based company said that it earned $700,000, or 1 cent per share, in the quarter ending Nov. 30. It lost $10.4 million, or 23 cents per share loss, in the same quarter last year.
It said its adjusted earnings came to 7 cents per share for the latest quarter.
Analysts, on average, expected earnings of 13 cents per share, according to a survey by FactSet.
The company said that its total revenue fell 16 percent to $253.9 million from $301.4 million.
Sales at its performance chemicals unit dropped 21 percent to $189.5 million.
Fourth-quarter results were hurt by a weaker global demand, especially in Europe and in the North American paper industry, said the company's Chief Executive Officer Kevin McMullen in a statement.
McMullen also said that a recovering U.S. housing market, growth in oil and gas exploration and a better outlook for the automotive and transportation segments in North America and Asia should help improve earnings in fiscal year 2013.
Shares of the company rose 3 cents to close at $7.65 Tuesday.
