FAIRLAWN, Ohio (June 23)—Omnova Solutions Inc. posted net income of $300,000 on sales of $189.5 million in the second quarter ended May 31, both improvements over the like period last year, the company reported June 22.
In 2003's second quarter, the Fairlawn-based company lost $5 million on sales of $176.6 million.
Increases in cost of goods sold, inflation in oil- and natural gas-based raw materials and higher pension expenses during the quarter were offset by higher pricing, increased volume, improvements in manufacturing productivity and lower spending, Omnova said.
Kevin McMullen, Omnova Solutions chairman and CEO, said the company made good progress on its top line sales growth and improved or equaled operating profit in its three business segments despite a "challenging raw material environment."
Omnova is seeing improvement in most of its end-use markets after a weak environment over the past two years, and is optimistic it will continue throughout 2004, he said.
As the year unfolds, there remains significant risk of raw material inflation, McMullen said. Omnova made progress to partially offset those costs, but will need more price increases in the third quarter as styrene, butadiene, polyvinyl chloride resins and acrylic monomers costs continue to climb, he said.
Through six months of 2004, Omnova posted a $5.5 million net loss on sales of $349.4 million, compared to an $11.9 million loss on sales of $330 million in 2003.