OMNOVA Solutions Inc. reported unaudited consolidated earnings results for the second quarter and six months ended May 31, 2018. For the quarter, the company reported net sales of $206.3 million against $221.3 million a year ago. Income before income taxes was $10.9 million against loss before income taxes of $3.9 million a year ago. Net income was $8.4 million or $0.19 per basic and diluted share against net loss of $6.3 million or $0.14 per basic and diluted share a year ago. Net cash provided by operating activities was $23.6 million against $13.1 million a year ago. Capital expenditures were $3.9 million against $6.2 million a year ago. Adjusted income was $9.0 million or $0.20 per diluted share against $7.1 million or $0.16 per diluted share a year ago.

For the six months, the company reported net sales of $385.0 million against $395.9 million a year ago. Income before income taxes was $13.1 million against loss before income taxes of $1.9 million a year ago. Net income was $15.7 million or $0.35 per basic and diluted share against net loss of $2.8 million or $0.06 per basic and diluted share a year ago. Net cash provided by operating activities was $15.6 million against $8.3 million a year ago. Capital expenditures were $7.1 million against $9.9 million a year ago. Adjusted income was $12.8 million or $0.29 per diluted share against $9.3 million or $0.21 per diluted share a year ago. Net debt (debt less cash) as at May 31, 2018 was $266.9 million.

For the quarter, the company reported asset impairments of $0.4 million against $12.9 million a year ago.

For the full year 2018, the company expects performance expectations are unchanged - the fourth consecutive year of growth in adjusted diluted earnings per share.

The company is expecting third quarter 2018 to be below 2017's third quarter as last year's results had significant margin catch-up from first half 2017 raw material escalation.

The company is expecting 2018's fourth quarter to be above 2017's fourth quarter as 2017 included the impact of a hurricane, bad debt write-offs and the antioxidant plant issues.