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OM Group Inc. Reports Operating Results (10-K)

February 28, 2012 | About:
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10qk

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OM Group Inc. (OMG) filed Annual Report for the period ended 2011-12-31.

Om Group Inc has a market cap of $966.5 million; its shares were traded at around $28.79 with a P/E ratio of 8 and P/S ratio of 0.8. Om Group Inc had an annual average earning growth of 1% over the past 5 years.

Highlight of Business Operations:

The Magnetic Technologies segment is engaged in the development, manufacturing and distribution of industrial-use magnetic products and systems for electronic equipment markets, including the renewable energy, automotive systems, construction and industrial sectors. We sell the majority of our products directly to original equipment manufacturers who incorporate them into their sub-assemblies and final assemblies. At December 31, 2011, backlog was $132.1 million, all of which is expected to be converted into sales during the next twelve months.

The Battery Technologies segment provides advanced batteries, battery management systems, battery-related research and energetic devices for defense, aerospace and medical markets. We sell these products directly to customers who incorporate them into sub-assemblies. At December 31, 2011, backlog was $122.9 million as compared with $134.9 million at December 31, 2010. At December 31, 2011, $26.2 million of the backlog is not expected to be converted into sales during the next twelve months.

As discussed above, we completed the acquisition of VAC on August 2, 2011. From the date of acquisition, Magnetic Technologies contributed net sales of $276.1 million and adjusted operating profit of $44.3 million (see below for a reconciliation of U.S. GAAP operating loss to adjusted operating profit). In 2011, stronger global demand, share gains and favorable price for copper by-product enabled Advanced Materials to realize higher net sales; however, the benefit from higher sales volume was offset by a declining cobalt price and higher process-based material costs, resulting in lower operating profit. In Specialty Chemicals, adjusted operating profit decreased in 2011 compared to 2010 primarily due to an unfavorable shift in mix of products sold. The increase in sales and adjusted operating profit in Battery Technologies for 2011 was primarily due to higher volume, with adjusted operating profit also benefiting from favorable price/mix and income from sales of recycled material.

Net sales increased $317.9 million, or 26.6%, primarily due to the VAC acquisition. A full year of sales for Battery Technologies in the 2011 period compared to eleven months of sales in the 2010 period contributed $10.1 million to the increase in net sales.

backlog was $122.9 million as compared with $134.9 million at December 31, 2010. Backlog was lower due to reduced U.S. defense orders in 2011. $26.2 million of the backlog at December 31, 2011 is not expected to be converted into sales during the next twelve months.

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