Omnova sees sales, profits fall in 2013

By Frank Esposito
Senior Staff Reporter

Published: February 6, 2014 1:43 pm ET
Updated: February 6, 2014 3:06 pm ET

Related to this story

Topics Materials Suppliers
Companies & Associations Omnova Solutions Inc.

Officials at Omnova Solutions Inc. will be looking for better days in 2014, after the firm's sales and profit both declined in its 2013 fiscal year.

Omnova – a maker of plastic materials, films, laminates and chemical products based in Fairlawn, Ohio – posted sales of almost $1.02 billion in the year ended Nov. 30. That total represented a drop of about 9.5 percent from fiscal 2012. The firm's profit fell almost 29 percent to $19.6 million in the same comparison.

"After a slow start to (fiscal) 2013, our year-over-year results improved throughout the year," Chairman and CEO Kevin McMullen said in a Jan. 21 news release. "Looking forward, there are encouraging signs in markets where we are well-positioned, such as oil and gas exploration, automotive and transportation and U.S. construction and refurbishment."

He added that Omnova's Performance Chemicals unit should benefit from new capacity in China, as well as from the rationalization of some styrene butadiene latex capacity in North America. The firm is moving polymer emulsion work from a plant in Akron, Ohio, to one in nearby Mogadore. That move is expected to result in annual savings of $4 million beginning in 2015.

Fourth-quarter demand was strong for Omnova's plastic laminates in residential and commercial construction-related markets for products sold into kitchen, bath, window and home furnishing applications. The firm also plans to move its headquarters site from Fairlawn to Beachwood – about 30 miles away - by the end of 2014.

On Wall Street, Omnova's per-share stock price was under $6.50 as recently as May, but it then began to rise, reaching $10 in mid-January. A broader market selloff had caused the price to recede to $8.40 in early trading Feb. 5.


Comments

Omnova sees sales, profits fall in 2013

By Frank Esposito
Senior Staff Reporter

Published: February 6, 2014 1:43 pm ET
Updated: February 6, 2014 3:06 pm ET

Post Your Comments


Back to story


More stories

Image

Formosa to be compensated for Vietnam riot

July 28, 2014 1:44 pm ET

Taiwan's Formosa Plastics Group will receive $2.39 million from the Vietnamese government and insurance companies for damages suffered during the...    More

Image

Ukraine's Group DF may be forced to sell Crimea-based additives plant

July 28, 2014 10:12 am ET

Group DF, the industrial business of Ukrainian tycoon Dmitry Firtash, may be forced to sell off Eastern Europe's biggest producer of titanium oxide,...    More

Image

DuPont resins help take Nike golf balls 'Fore!'ward

July 25, 2014 1:07 pm ET

It may be difficult to imagine just how much science, not to mention rubber and plastic components, go into a golf ball. But global giant DuPont Co....    More

Image

Bioplastics maker wins government funding

July 25, 2014 12:13 pm ET

Canadian bioplastics maker Solegear Bioplastics Inc. has won $1.6 million in funding from the government-sponsored Western Innovation Initiative...    More

Meredian merging with Danimer Scientific

July 24, 2014 1:59 pm ET

Bioplastics maker Meredian Inc. is merging with its sister firm, Danimer Scientific LLC.    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events