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OMNOVA Solutions Inc. (OMN) filed Annual Report for the period ended 2011-11-30.
Omnova Solutions Inc. has a market cap of $249.7 million; its shares were traded at around $5.47 with a P/E ratio of 10.4 and P/S ratio of 0.3. Omnova Solutions Inc. had an annual average earning growth of 0.8% over the past 10 years.
This is the annual revenues and earnings per share of OMN over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of OMN.
Highlight of Business Operations:
Performance Chemicals’ net sales increased $424.0 million to $951.9 million during 2011 compared to $527.9 million during 2010. ELIOKEM added $337.4 million in net sales while Performance Chemicals’ legacy business net sales were up $86.6 million due to higher selling prices of $104.0 million and foreign currency translation effects of $1.4 million, partially offset by lower volumes of $18.8 million. Net sales for the Paper and Carpet Chemicals product line increased $69.2 million to $399.3 million during 2011 compared to $330.1 million during 2010. Net sales for the legacy Specialty Chemicals product line increased $17.4 million to $215.2 million during 2011 compared to $197.8 million during 2010.2010. Excluding this gain, operating profit would have been $63.6 million for 2010. The decrease in operating profit from $63.6 million to $52.9 million was due primarily to higher raw material costs of $107.0 million, which were partially offset by higher pricing of $104.0 million. Also contributing to the decrease in segment operating profit was $7.6 million of margin related to lower volumes, which was partially offset by $2.1 million of lower manufacturing cost, SG&A and other expense. Additionally, this segment recorded LIFO expense of $4.3 million in 2011 compared to LIFO expense of $2.8 million in 2010. Segment operating profit also includes other items which management excludes when evaluating the results of the Company’s segments. Those other items for 2011 include the trade receivable allowance charge of $0.9 million, $2.7 million due to a one-time fair value charge for ELIOKEM, inventory and workforce reduction costs for ELIOKEM of $1.1 million. Those other items for 2010 include workforce reduction costs of $0.4 million and a defined benefit pension plan curtailment charge of $0.1 million.
In November 2011, the Company committed to a plan to exit its North American wallcovering business and move production of its Columbus, Mississippi coated fabrics business to other facilities and accordingly, recognized an impairment charge on machinery and equipment of $0.7 million. Included in the operating loss for 2010 are several charges related to the coated fabrics business in the Columbus, Mississippi facility including a non-cash asset impairment charge of $2.7 million for the write-down of machinery and equipment to fair value, strike-related costs of $2.4 million and a non-cash pension plan curtailment charge of $1.4 million. The impairment was caused by the transfer of certain products to other Company facilities to better meet customer demand. The assets were written down to their estimated fair value using a cost approach. Excluding the above items, segment operating profit would have been $1.8 million in 2011 compared to an operating profit of $3.3 million in 2010. The decrease in segment operating profit was due primarily to margin related to lower volumes of $5.1 million, higher raw material costs of $13.7 million, higher manufacturing, overhead and other costs of $1.5 million and foreign exchange transaction losses of $0.6 million, partially offset by higher pricing of $16.8 million. Additionally, this segment recorded a LIFO inventory income adjustment of $0.5 million in 2011 compared to a LIFO charge of $0.1 million in 2010. Segment operating profit also includes other items which management excludes when evaluating the results of the Company’s segments. Those other items for 2011 include facility closure costs of $0.6 million, workforce reduction costs of $0.5 million, a tax indemnification charge of $0.2 million, and a pension curtailment charge of $0.1 million, and for 2010 included a foreign import duty claim of $0.3 million, a reversal of an indemnification receivable of $0.3 million, legal settlement expense of $0.3 million and workforce reduction costs of $0.2 million.
This segment generated an operating profit of $73.3 million in 2010. Included in the operating profit is the gain of $9.7 million for the dissolution of the RohmNova joint venture in the second quarter of 2010. Excluding this gain, operating profit would have been $63.6 million for 2010 compared to $47.9 million in 2009, an improvement of 32.8%. The increase in segment operating profit was due primarily to higher volumes of $14.6 million, and $6.3 million of lower manufacturing cost, SG&A and other expense. Higher pricing of $85.3 million was mostly offset by higher raw material costs of $83.5 million. Additionally, this segment recorded LIFO expense of $2.8 million in 2010 compared to LIFO income of $5.3 million in 2009. Segment operating profit also includes other items which management excludes when evaluating the results of the Company’s segments. Those items for 2010 include workforce reduction costs of $0.4 million and a defined benefit pension plan curtailment charge of $0.1 million and for 2009, asset write-offs of $0.6 million, workforce reduction costs of $0.2 million and a defined benefit pension plan curtailment charge of $0.2 million.
This segment had an operating loss of $3.2 million for 2010. Included in the operating loss are several charges related to the coated fabrics portion of the Columbus, Mississippi facility including a non-cash asset impairment charge of $2.7 million for the write-down of machinery and equipment to fair value, strike-related costs of $2.4 million, of which $1.4 million is included in cost of goods sold and a non-cash pension plan curtailment charge of $1.4 million. The impairment was caused by the transfer of certain coated fabrics products to other Company facilities to better meet customer demand. The assets were written down to their estimated fair value using a cost approach. Excluding the above items, segment operating profit would have been $3.3 million compared to an operating profit of $2.2 million in 2009. The increase in segment operating profit was primarily due to margin on higher volumes of $11.2 million and higher pricing of $4.5 million, partially offset by higher raw material costs of $10.8 million and higher manufacturing, overhead and other costs of $3.4 million. Additionally, this segment recorded a LIFO inventory charge of $0.1 million in 2010 compared to LIFO income of $0.5 million in 2009. Segment operating profit also includes other items which management excludes when evaluating the results of the Company’s segments. Those items for 2010 included a foreign import duty claim of $0.3 million, a reversal of an indemnification receivable of $0.3 million, legal settlement expense of $0.3 million and workforce reduction costs of $0.2 million and, for 2009, a pension curtailment gain of $0.7 million, flood-damage costs of $0.6 million, workforce reduction costs of $1.2 million, asset impairment charges of $0.5 million and a reversal of an indemnification receivable of $0.3 million.
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