OMNOVA Solutions Inc. of Fairlawn, Ohio, reported net income of $3.5 million, or $0.08 per diluted share, for the third quarter ended Aug. 31, 2010, compared to net income of $10.1 million, or $0.23 per diluted share, for the third quarter of 2009.
Included in the third quarter of 2010 were non-recurring expenses totaling $6.7 million, including $3.9 million related to a strike at a Decorative Products manufacturing plant in East Mississippi.
On May 20, the Columbus-based United Steelworkers Local 748-L voted against ratification of a new contract proposal and subsequently went on strike May 21. During the quarter, the company’s salaried workforce and contract labor continued to operate the plant and meet customers’ requirements. Late in the quarter, the company transitioned from contract labor to locally hired replacement workers.
As a result, strike-related costs, which were $3.9 million in the third quarter, are expected to decline significantly in the fourth quarter to approximately $0.9 million to $1.2 million, according to OMNOVA.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info