Fairlawn, Ohio --Omnova Solutions Inc. rebounded from a loss in 2004's third quarter and recorded a profit for the like period in 2005 on a slight boost in sales.
The company had net income of $1.4 million for the quarter compared with a net loss of $4.2 million in last year's third period. Sales increased 2.3 percent to $207 million.
The earnings improvement in 2005 was impacted by restructuring and severance charges of $600 000 primarily related to work force reductions in the company's operations in the United Kingdom. During the last year, about 200 employees have been laid off at Omnova.
Contributing to the sales increase were pricing improvements of $26.3 million, partially offset by $15.9 million in lower volumes and $5.7 million related to the firm's decision to exit a wall covering distribution joint venture during 2005's first quarter.
From Rubber & Plastics News (A Crain publication)