Synthomer Plc announced plans to buy OMNOVA Solutions Inc. (NYSE:OMN) for $824 million. Omnova’s profit for the second quarter dropped over 33% to $5.6 million. Net sales slipped to $205.7 million for the quarter, from $206.3 million in the year-ago quarter
OMNOVA, located in Beechwood, Ohio, also reported its second-quarter fiscal 2019 earnings, which included the 10th consecutive quarter of year-over-year volume growth in its Specialty Solutions segment.
Diluted earnings per share for the second quarter ended May 31, 2019 was $0.12 per share, compared to diluted earnings per share of $0.19last year.
Adjusted Diluted Earnings per Share of $0.12 for the second quarter of 2019 was lower than Adjusted Diluted Earnings per Share of $0.20 last year, with the decline primarily driven by general market uncertainty and the full impact of the Company's exit from the commodity coated paper market that began in 2018.
The company completed the closure and sale of its Green Bay, Wisconsin plant during May 2019 and has completed the transfer of those products to its Mogadore, Ohio plant.
According to CEO Anne Noonan, "As anticipated, we continued to face challenging economic conditions and volatile markets during the quarter. In spite of this market uncertainty, our specialization strategy made continued progress.
"We reported our 10th consecutive quarter of year-over-year volume growth in Specialty Solutions driven by Specialty Coatings, Adhesives & Sealants and Oil & Gas."
OMN shares ballooned $3.56, or 55.5%, to $9.98
