Strike at Mississippi plant impacts OMNOVA’s earnings
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.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- DAVID DALLAS — From Dan and Dixie with love
- BREAKING NEWS: Trustees offer new deal to Ole Miss chancellor Dan Jones
- Dan Jones rejects IHL offer, won't publicly apologize
- Law to bolster utilities’ economic development efforts gets mixed reactions
- Lawmakers: Time to raze IHL
- Developers withdraw zoning application for former country club
- DAVID WILLIAMS: Smart traffic signals pave way for better driving in connected world
- Rhythm & Blues Hall of Fame planning gets underway
- Office occupancy edged up throughout Metro Jackson