Omnova Solutions Q2 FY'13 sales fall 11.9%

Income tax expense was $1.3 million, representing a 33.3% effective income tax rate, for the second quarter of 2013, compared to income tax expense of $2.9 million, or a 29.6% effective tax rate, in the second quarter of 2012.  The Company estimates its full-year 2013 effective rate will be approximately 30%. 

Additionally, cash tax payments in the U.S. over the next few years are expected to be minimal as the Company has $116.8 million of U.S. federal net operating loss carryforwards and $90.0 million of state and local tax net operating loss carryforwards with expiration dates between 2022 and 2032.

Net income for the second quarter of 2013 was $2.9 million, or $0.06 per diluted share, compared to net income of $7.0 million, or $0.15 per diluted share, for the second quarter of 2012. 

This included income from discontinued operations of $0.3 million for the second quarter of 2013, compared to income from discontinued operations of $0.1 million in the second quarter of 2012.  Income from continuing operations for the second quarter of 2013 was $2.6 million, or $0.06 per diluted share, compared to $6.9 million, or $0.15 per diluted share, for the second quarter of 2012. 

Adjusted Income from Continuing Operations was $7.1 million, or $0.16 per diluted share for the second quarter of 2013, compared to Adjusted Income from Continuing Operations of $8.3 million, or $0.18 per diluted share, in the second quarter of 2012.

OMNOVA Solutions