FAIRLAWN, Ohio (Aug. 31, 2011)—Omnova Solutions Inc. has revised downward its earning estimates for 2011.
The performance chemicals and polymers producer now said its expects adjusted diluted earnings per share for its fiscal year ending Nov. 30 to be between 40 and 44 cents a share, compared to the prior estimate of 60 cents a share.
Omnova said the updated estimate reflects a reduction in market volumes caused by a deceleration in the global economy in the third quarter along with the rapid escalation in raw material costs to unprecedented highs. The firm expects the conditions to continue in the fourth quarter.
“While we face near-term profit headwind, we remain encouraged by the long-term earnings prospects of Omnova as we continue to take actions to improve our earnings capability,” said Chairman and CEO Kevin McMullen.