FAIRLAWN, OH - OMNOVA Solutions Inc. has reported net income of $11.1 million, or $0.25 per diluted share, for the fourth quarter ended Nov. 30, 2009, compared to net income of $0.8 million, or $0.02 per diluted share, for the fourth quarter of 2008. Included in the fourth quarter of 2009 were restructuring, severance, asset impairment and other charges of $0.4 million, compared to $0.3 million in the fourth quarter of 2008.
Net sales decreased $30.8 million, or 14.0 percent, to $188.8 million for the fourth quarter of 2009, compared to $219.6 million for the fourth quarter of 2008. The fourth-quarter decrease in sales was the result of lower selling prices of $30.1 million and foreign currency translation effects of $1.1 million, partially offset by improved volume of $0.4 million, which included market share gains and penetration into new adjacent markets. Gross profit improved to $44.0 million, with margins of 23.3 percent, in the fourth quarter of 2009, compared to $34.6 million, and margins of 15.8 percent, in the fourth quarter of 2008. The margin improvement was primarily due to lower raw material costs and reduced manufacturing expenses.
For the year ending on Nov. 30, 2009, net sales decreased $173.0 million or 19.9 percent, to $696.4 million, compared to $869.4 million in 2008, driven by sale price declines of $68.7 million, lower volumes of 12.5 percent or $108.6 million, and foreign currency translation effects of $16.1 million, partially offset by $20.4 million incremental year-over-year sales from the company's Asian businesses.
Cost of goods sold for 2009 was $536.7 million, down $194.7 million versus 2008. The decrease was driven primarily by $106.8 million of lower raw material costs, lower volumes and reduced manufacturing expenses. Gross profit increased to $159.7 million with margins of 22.9 percent, compared to $138.0 million and margins of 15.9 percent in 2008. Selling, general and administrative costs decreased $4.9 million to $99.9 million, primarily from cost reduction initiatives.
Net income for 2009 was $26.2 million, or earnings per diluted share of $0.61, compared to a net loss of $2.2 million, or loss per diluted share of $0.05, in 2008. Included in the 2009 results are restructuring, severance, asset impairment and other charges of $2.8 million. Included in the 2008 net loss are restructuring, severance and other charges of $0.7 million.
Performance Chemicals net sales during the fourth quarter of 2009 decreased 16.1 percent, to $110.8 million, compared to $132.0 million in the fourth quarter of 2008. For the full year, Performance Chemicals sales of $396.8 million were down $124.8 million, or 23.9 percent, compared to $521.6 million in 2008.
Decorative Products net sales were $78.0 million during the fourth quarter of 2009, a decrease of $9.6 million, or 11 percent, compared to the fourth quarter of 2008. However, Decorative Products' Asian sales were up year-over-year to $27.0 million as compared to $26.2 million in the fourth quarter of 2008. For the full year, Decorative Products sales were down $48.2 million, or 13.9 percent, to $299.6 million as compared to $347.8 million in 2008.
