Fairlawn surfaces and laminates maker Omnova Solutions reported a 59 percent drop in its second-quarter profits.
The company said Thursday its net income for the second quarter ended May 31 was $2.9 million or 6 cents per share. That compares to $7 million or 15 cents per share for the same period a year ago. The latest second-quarter results included one-time costs related to restructuring, manufacturing transition, refinancing activities and other items, which totaled $6.4 million before taxes, the company said in a press release.
Kevin McMullen, Omnova chairman and chief executive officer, said the company’s adjusted segment operating profit increased $6.6 million from the previous quarter.
“This improvement was broad-based across most performance chemicals and engineered surfaces product lines. Higher volumes, cost reduction actions and a favorable mix of business drove the sequential improvement,” he said.
The company had previously disclosed that it lost volume in coated paper chemicals late last year, which negatively affected the company’s results for the first half of fiscal 2013.
“We have won new commitments that are expected to offset much of the lost volume,” McMullen continued.
The company has also made a number of structural improvements it expects to contribute to improved results during the remainder of the year, McMullen said, including new global manufacturing capability coming online in the unit it calls Performance Chemicals, a worldwide reductions of “over 70 positions” and investing growth initiatives, some manufacturing consolidation and new product launches.