Omnova Solutions loses money in its 1st quarter
FAIRLAWN, Ohio (AP) — Chemical company Omnova Solutions lost money in its seasonally weak fiscal first quarter, stung by a loss from discontinued operations and weaker volumes.
Its stock tumbled more than 5 percent in Wednesday afternoon trading.
For the three months ended Feb. 28, Omnova lost $200,000, or breakeven per share. A year earlier it earned $13.5 million, or 29 cents per share.
Excluding income tax expense and operating profit adjustments for the performance chemicals and engineered surfaces units, income from continuing operations was $1.5 million or 3 cents per share.
Analysts predicted earnings of 8 cents per share, according to FactSet.
Revenue fell 9 percent to $251.7 million on declining volume and lower prices.
Chairman and CEO Kevin McMullen said in a statement that the Fairlawn, Ohio, company lost significant volume in coated paper chemicals markets late last year, which hurt the current quarter's performance. It also had to deal with soft volume in European and Indian markets.
Omnova expects its 2013 adjusted income from continuing operations will top the prior year's 63 cents per share. Analysts expect earnings of 68 cents per share.
The company's shares fell 41 cents, or 5.3 percent, to $7.27. The stock has traded in a 52-week range of $6.15 to $8.99.