FAIRLAWN, Ohio (March 22) — Omnova Solutions Inc. recorded a net loss of $4.3 million in the first quarter, which is an improvement compared to the net loss of $10.9 million for the first period of 2005.
Sales increased 2.7 percent to $193 million. Cost of products sold in the quarter increased $4.7 million to $155.4 million versus $150.7 million in the period last year, driven primarily by $7.1 million in higher raw material costs, a $1.3 million boost in non-cash pension expense, and $1.7 million in higher utility and transportation costs, the firm said.
The first quarter is traditionally Omnova´s weakest, said Chairman and CEO Kevin McMullen. But it marked the fourth consecutive quarter of year-over-year improvement in earnings per share, he said.
McMullen said the company anticipates improved consolidated financial results in fiscal 2006 partially due to improved market demand, market share gains and an expected decline of raw material pricing.