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
- Chris McDaniel gets a thank you note from Travis Childers
- Senate passes teacher pay raise legislation
- Lawmakers debating alternative to Medicaid expansion
- Pickering collects more money from failed beef plant project
- The First acquiring Alabama bank in cash/stock deal
- Todd Smith's Spin Cycle — Not milk! It’s end of era for milk industry’s iconic ‘Got Milk?’ campaign
- States settle with manufacturers in DRAM price-fixing case
- District at Eastover takes shape with financing in place, tenant signings under way
- MBJ's Businesswoman of the Year never expected her career to take this path
- Mississippi ag aviation plays a critical role in production and profitability