FAIRLAWN, Ohio (June 20) — Omnova Solutions Inc. posted net earnings of $5.3 million in the second quarter ended May 31, up from 3.6 million in the like period of 2005, the company reported today.
Net sales decreased 2.2 percent from last year to $204.6 million during the quarter. Gross profit dipped slightly to $45.4 million, or 22.2 percent of net sales, in the quarter, as compared to $45.5 million, or 21.7 percent of net sales, in the like period of 2005.
The improvement in operating margin was driven by lower manufacturing, health care and warranty costs, which were partially offset by a $700,000 increase in non-cash pension expense, and $1 million of higher utility and transportation costs, the company said.
For the six-month period of fiscal 2006, Omnova´s sales were up slightly to $397.7 million and net income was $1 million. The company posted a loss of $7.3 million during the first six months of 2006.
Fairlawn-based Omnova supplies specialty chemicals, latex, decorative products such as wallcoverings, and building products — including elastomer- and plastic-based roofing materials — to a variety of markets.