Omnova Solutions posts first-quarter loss because of accounting principle change

FAIRLAWN, Ohio (March 13)—Omnova Solutions Inc. reported a $142 million net loss for the quarter ended Feb. 28—including a one-time $142.5 million charge because of the adoption of a new accounting standard. According to the company, Financial Accounting Standards Board Statement of Financial Accounting Standards 142 eliminates the "amortization of goodwill and other indefinite lived intangible assets and changes the method of determining whether there is goodwill impairment from an undiscounted cash flow method, under SFAS 121, to a fair value method." Under SFAS 142, Omnova performed a fair market valuation analysis on its businesses and as a result took the charge, the company said. The Fairlawn-based firm also posted net sales of $156.3 million during the quarter, down 5.3 percent from $165.1 million in fiscal 2001.