Omnova sales, profits down in third quarter

FAIRLAWN, Ohio (Sept. 18)—Omnova Solutions Inc. reported net earnings of $500,000 on sales of $177.6 million during the quarter ended Aug. 31, down from the like period of 2001. Sales for the third quarter fell 11.2 percent from $199.9 million last year, while net income declined from $2.6 million. Segment operating profit also decreased more than 50 percent to $4.5 million from $10.6 million in the 2001 third quarter. Hyperinflation in key raw materials and slowing market demand contributed to the declines, said Kevin McMullen, Omnova chairman and CEO. For the nine-month period, Omnova posted net sales of $508.9 million and a net loss of $136 million. The firm announced earlier this month it expects full-year earnings per share to end up in the 7- to 12-cents range, compared with 10 cents in 2001. The previous estimate for Omnova earnings per share in 2002 was the 33- to 40-cents range.