Omnova Solutions (OMN) Reports In-Line Q2 EPS, Beats on Revenues

Omnova Solutions (NYSE: OMN) reported Q2 EPS of $0.16, in-line with the analyst estimate of $0.16. Revenue for the quarter came in at $221.3 million versus the consensus estimate of $204.4 million.

Second Quarter 2017 Highlights

• Specialty Solutions sales grew 14% compared to the prior year, with operating margins of 14.9%, while Performance Materials increased sales by 4%, with operating margins of (8.0)%, primarily due to charges related to China coated fabrics. Performance Materials had adjusted segment operating profit margins of 3.8%.
• Volume driven sales growth for Specialty Solutions was 6.3% with volume increases across most of the segment\'s lines of business. Performance Materials experienced a volume decline of 13.3%, driven by reduced sales in paper, carpet and China coated fabrics markets.
• The Company completed realignment of its businesses and related reporting into two new segments: Specialty Solutions, 55% of sales and 83% of adjusted segment operating income, and Performance Materials, 45% and 17%, respectively.
• Reported loss per diluted share was $0.14, compared with earnings per diluted share of $0.16 last year. Adjusted Diluted Earnings Per Share was $0.16, compared to $0.18 a year ago. As expected, Specialty Solutions volume growth was offset by raw material driven margin declines.
• The Company recorded an impairment charge of $12.9 million during the quarter related to China coated fabrics.

For earnings history and earnings-related data on Omnova Solutions (OMN) click here.

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