FAIRLAWN, Ohio (March 23) — Omnova Solutions Inc. posted a net loss of $5.1 million on net sales of $164.8 million in the first quarter ended Feb. 28, the company reported.
The Fairlawn-based company — which supplies specialty chemicals, latex and decorative products to a variety of markets — had a net loss of $4.3 million on net sales of $169.8 million in the like period of fiscal 2007.
Reduced unit volume of $9.7 million during the quarter contributed to the sales decrease, the company said. The volume decline was particularly affected by weak residential-housing related markets, Omnova said. Sales price increases of $2.8 million and a favorable foreign exchange conversion of $1.9 million partially offset the volume fall-off.
Despite the loss in the quarter, Omnova is optimistic about achieving volume and earnings improvement for the full year of 2007, said Kevin McMullen, the company's chairman and CEO. The first quarter is historically the weakest due to the business' seasonality, he said, and the results are not indicative of the company's full-year expectations or the underlying improvements being made.
In other Omnova news, the company's shareholders have re-elected David J. D´Antoni, Diane E. McGarry and Steven W. Percy as directors. All will serve three-year terms expiring at the 2010 annual shareholders meeting.