Shares of Omnova Solutions on Thursday fell 33 cents, or 4.3 percent, to $7.34 on the day after the Fairlawn polymer and specialty chemicals maker reported earnings.
After being buffeted by high raw material costs in its second quarter, Omnova, which also makes decorative wallcoverings, said raw material prices are now dropping and are expected to stay low the remainder of the year, helping company finances. Raw material costs were led by an industrial chemical, butadiene, that Omnova buys millions of pounds of annually.
The company reported Wednesday, after the stock market closed, that it earned $7 million, or 15 cents per share, on revenue of $312.8 million for the second quarter ending May 31. A year ago, Omnova earned $6.2 million, or 14 cents per share, on revenue of $312.8 million.
“Omnova turned in a very solid quarter in the first half of 2012,” Chairman and Chief Executive Officer Kevin McMullen said in a conference call with analysts Thursday morning.
Omnova saw strong sales of specialty polymers used in oil drilling.
Those specialty chemicals are “particularly well suited for difficult, high temperature and high pressure environments,” McMullen said. “This area is likely to see increased emphasis as exploration efforts move to tap new sources of oil in more challenging environments.”
Omnova continues to develop new products for specialty coatings, oil and gas drilling and packaging, McMullen said.
Jim Mackinnon can be reached at 330-996-3544 or email@example.com