Omnova reports $124 million of liquidity, $102.1 million of net debt

By Jennifer Lanning Drey

Portland, Ore., June 30 - Omnova Solutions Inc. ended the second quarter with $124 million of total liquidity and $102.1 million of net debt at May 31, the company's chief executive officer Kevin McMullen reported Wednesday during its quarterly earnings conference call.

The liquidity figure included $42 million of cash on hand and an unused revolving asset-based credit facility with borrowing capacity of $82 million.

The net debt figure represented a $6.2 million decrease during the second quarter.

Year-to-date, net debt is roughly unchanged, due to additional working capital requirements associated with sales growth and higher raw material costs, McMullen noted.

However, the company has its reduced net debt by $31 million over the last 12 months, he said.

Omnova's net sales increased to $226.4 million for the second quarter, compared to $161.3 million for the second quarter of 2009. The company said the increase was the result of improved volumes, higher selling prices and favorable foreign currency translation effects.

Second-quarter net income was $15.1 million, compared to net income of $5.1 million for the prior-year period.

"The actions we have taken to fundamentally improve our business model along with our improving market environment have driven continued earnings momentum, as this is the sixth consecutive quarter of year-over-year earnings growth," McMullen said.

Omnova is a Fairlawn, Ohio, provider of emulsion polymers and specialty chemicals.

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