BEACHWOOD, Ohio—Omnova Solutions Inc. reported a net loss of $3.2 million for first quarter of 2015 as a result of what it said was an unfavorable $8.8 million year-over-year net inventory revaluation, the firm said in an April 8 statement.
Net sales also decreased by 8.4 percent to $206.9 million, compared to $225.9 million in 2014. The firm had reported net income of $1.2 million in first quarter 2014.
Chairman and CEO Kevin McMullen said in a statement that the first quarter is seasonally the firm's weakest, but performance was encouraging.
“We expanded margins on products sold for the second consecutive quarter, a fact that was masked by the impact of the first quarter adverse net inventory revaluation resulting from the steep declines in raw material costs,” the executive said in a statement.
The firm's Performance Chemicals Segment experienced a decline in net sales by 10.7 percent to $153.3 million, compared to $171.7 million in 2014. The firm attributed the decline primarily to reduced pricing of $12.3 million, driven by contract-based index pricing in certain markets tied to raw material price declines.
Omnova produces emulsion polymers, specialty chemicals, and decorative and functional surfaces for a variety of commercial, industrial and residential end uses. The firm employs 2,300 at 23 locations worldwide.