Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

OMNOVA Solutions (NYSE:OMN)

F2Q 2013 Earnings Call

June 27, 2013 11:00 am ET

Executives

Kevin M. McMullen - Chairman, Chief Executive Officer, President and Chairman of Executive Committee

Michael E. Hicks - Chief Financial Officer and Senior Vice President

Analysts

Michael J. Sison - KeyBanc Capital Markets Inc., Research Division

Roger N. Spitz - BofA Merrill Lynch, Research Division

Jermaine Brown - Deutsche Bank AG, Research Division

Laurence Alexander - Jefferies & Company, Inc., Research Division

Curtis Bush - CIFC

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the OMNOVA Solutions Second Quarter Earnings Discussion Conference Call. [Operator Instructions] And also as a reminder, this teleconference is being recorded.

And at this time, I will turn the conference call over to your host, Chairman and CEO, Mr. Kevin McMullen. Please go ahead, sir.

Kevin M. McMullen

Good morning, and thank you for joining us for our conference call to discuss second quarter 2013 results. Joining me today is Mike Hicks, our Senior Vice President and Chief Financial Officer.

I'd like to turn the call over to Mike to make comments on forward-looking statements.

Michael E. Hicks

Thanks, Kevin. During this conference call, OMNOVA representatives may make forward-looking statements as encouraged by the Private Securities Litigation Reform Act of 1995. All statements in this conference call and in subsequent discussions with the company's management, other than historical information, are forward-looking statements.

These statements represent management's current judgment on expectations for future results and other matters. A variety of risk factors highlighted in the company's Form 10-K and in our most recent earnings release could cause business conditions and the company's actual results to differ materially from those expected by the company or expressed in the company's forward-looking statements.

Kevin?

Kevin M. McMullen

Thanks, Mike. As expected, results in OMNOVA Solutions' 2013 second quarter improved significantly over the first quarter. The company experienced sequential increases in net sales, adjusted segment operating profit and adjusted segment operating profit margins, with the latter improving by 200 basis points quarter-over-quarter. Sales increased in the second quarter versus the first quarter by nearly 8% overall, with improvements in demand in most product lines. Compared to the second quarter of last year, demand in this year's second quarter improved in several performance chemical applications, including oil and gas drilling, home and personal care products, construction nonwovens, paint and adhesive and rubber reinforcing and elastomeric modification.

It was another good quarter at our newest chemical plant in Caojing, China, with growing utilization levels to supply products using tire cord and other fabric-reinforcing rubber applications. In addition, we made solid progress on our investment to build new capacity and a new chemistry at Caojing to produce a broader range of polymer solutions for the growth markets of Asia.

In North America, following the completion last quarter of new manufacturing capability to produce hollow plastic pigments for paper packaging and specialty chemical applications, we have begun customer shipments, and other customer qualifications are progressing. To build this capability for OMNOVA, we have re-purposed or redirected several of our existing styrene butadiene capacity to the production of this exciting high-performance technology. This improves our overall capacity utilization and supports our expansion into new chemistries that will enhance future growth.

We remain encouraged by the continuing improvement in our Engineered Surfaces business. Second quarter net sales were down year-over-year, although strong increases in demand were masked by variance caused by a large onetime order in 2012 and lower sales into residential furniture markets in China, where we have consciously elected to shed some low-margin business. Sales were particularly strong for our laminates that are sold into the resurging construction market. Adjusted segment operating profit was up in Engineered Surfaces as actions we have taken are resulting in a better business mix, a lower cost structure and improved yields.

As with our Performance Chemicals business, Engineered Surfaces continues to post solid results in China. The progress for Engineered Surfaces is from new business wins for sitting upholstery to serve the major Chinese OEMs in the fast-growing automotive sector. I will provide more details later this call on the many positive developments that drove the improvements in our second quarter financial performance and our building momentum for OMNOVA for a stronger second half of 2013.

But first, I'd like to summarize our consolidated second quarter results, as reported in our earnings release. Second quarter net sales were $270.8 million, down $36.7 million from the second quarter of 2012. The year-over-year sales decline was driven primarily by lower volumes of 5.5% and reduced pricing of 6%. However, compared to the 2013 first quarter, the company realized sequential improvement in net sales of $19.1 million or nearly 8%.

Gross profit in the second quarter of 2013 was down $2.7 million from the previous year primarily due to the lower volumes. However, gross profit margins improved to 21.2% versus 19.5% in the second quarter of last year on a stronger mix of sales and a lower cost structure. Sequentially, the company's adjusted segment operating profit increased $6.6 million when compared to the first quarter of this year and adjusted segment operating profit margins improved by 200 basis points to 8.7%. Adjusted income from continuing operations was $7.1 million or $0.16 per diluted share in the second quarter of 2013 compared to $8.3 million or $0.18 per diluted share in the second quarter of 2012.

SG&A expense was $31.2 million in the second quarter of 2013, a reduction of $1 million from the same period last year. This year-over-year decrease was due to lower employment cost and a reduction in discretionary spending.

Interest expense was $8 million in the 2013 second quarter, down $1.5 million from the second quarter of last year. The decline was primarily due to lower borrowing spreads as a result of a March 2013 term loan amendment that reduced the floating rate pricing of this debt by 125 basis points, as well as the completed amortization of an interest rate swap agreement in 2012.

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

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 million of state and local tax net operating loss carryforwards with expiration dates between 2022 and 2032.

OMNOVA's trailing 12-month adjusted EBITDA, as defined by our term loan credit agreement and presented in our earnings release financial tables, was $94.6 million at the end of the second quarter. We are solidly in compliance with our debt covenants. Net debt, as presented in our earnings release, decreased $12 million and ended the second quarter at $322.2 million. The decline was due primarily to improved profitability and working capital.

Turning now to the business segment results, beginning with Engineered Surfaces. Second quarter net sales were $66.6 million, a 4.3% decrease or $3 million lower than the second quarter of last year. Volumes were strong in many areas, with the sales decline primarily reflecting lower demand in global films, as well as a variance from a large onetime order in 2012 for laminates going into a retail store application.

Sequentially, sales in the second quarter improved by $6.1 million or over 10% as compared to the first quarter of this year. Sales for the laminate product lines, which includes Performance films, were down year-over-year for the reason I just mentioned. Sales were $36.1 million in the second quarter, a decrease of $2.5 million. Sales were strong, however, in the residential and commercial construction-related markets for products that go into kitchen and bath, specialty and home furnishing applications.

Sales of Coated Fabrics were $30.5 million, a slight decline of $0.5 million versus last year. Sales improved in China due primarily to higher volumes in transportation from new automotive wins with leading Chinese OEMs. This was partially offset by lower sales into residential furniture. OMNOVA is in an excellent position to grow with the strong automotive market in China with our quality lineup of fabrics for seating and other interior applications. Adjusted segment operating profit for the Engineered Surfaces segment was $4.7 million in the second quarter of 2013, an improvement of $1.4 million from last year's second quarter.

We have been keenly focused on improving the profitability of our Coated Fabrics business in particular, and in the second quarter, it was encouraging to see progress in this regard. We consciously elected to shed some low-margin business in the residential furniture sector in China. That, along with improvements in operating efficiencies, including managing our operations on a more integrated global basis, have enabled our Coated Fabrics business to improve its business mix, increase yields and rightsize its workforce, with the reduction of approximately 70 positions, primarily in Asia.

The improvement in Coated Fabrics and the continuing solid profit performance in laminates contribute to increased profitability in Engineered Surfaces overall during the 2013 second quarter. This was the first full quarter since the completion in February of transitional activities related to last year's divestiture of our Commercial Wallcovering business. As part of this transition, Coated Fabrics production was moved from our Columbus, Mississippi plant to other more efficient OMNOVA manufacturing sites in the U.S. and Asia. As evidenced by the profit improvement in the second quarter, this action has and is expected to continue to result in a much improved portfolio and better asset utilization in our Engineered Surfaces business going forward.

With the resurgence in the construction market, we're seeing increased sales of laminates into housing. Our laminates are used in a number of applications, including kitchen and bath cabinets, increasingly popular durable vinyl flooring, home furnishings and specialty acrylics for bath surrounds. Our products provide ideal solutions for new construction and refurbishment, offering increased durability, cleanability and scratch and mar resistance, in addition to realistic, natural and contemporary designs.

Turning now to Performance Chemicals. Net sales were $204.2 million in the second quarter, down $33.7 million from the second quarter of last year. A key driver of the sales drop was much lower raw material input costs, which resulted in lower index-based pricing in Performance Materials. Pricing in the second quarter of 2013 was down 8.2%. In addition, volumes decreased 5.3% year-over-year, and there were unfavorable foreign currency translation effects of $1.8 million.

However, on a sequential basis, net sales increased $13 million compared to the first quarter of 2013 as volumes began to pick up as a result of new business wins and a strengthening of key markets, such as construction. Performance Chemicals generated $18.8 million in adjusted segment operating profit in the second quarter of 2013 compared to $23.4 million in the same period last year. Sequentially, adjusted segment operating profit improved by $3.7 million from the first quarter.

Sales of Specialty Chemicals were $134.6 million in the second quarter as compared to $147.4 million for the same period in 2012. Sales declines in tire cord adhesives, coatings and products OMNOVA toll manufactures for others were partially offset by increases in chemicals for rubber reinforcing and modification, home and personal care products, tape and adhesive, oil and gas drilling and construction applications, such as roofing. We were encouraged that volumes increased in 8 of 10 specialty product lines for the second quarter on a year-over-year basis. The trend line continues to be strong for our chemicals sold in the oilfield drilling applications.

We are well positioned with a number of proprietary chemistries in both liquid and dry form. Our dry polymers are particularly well suited to meet challenging handling requirements that are typical as oil and gas exploration expands to increasingly rugged operating environments.

At OMNOVA's newest plant in Caojing, China, where we currently produce tire cord adhesive, we continue to make progress in obtaining customer approvals. A major construction project to further expand the types of specialty polymers we can produce at Caojing is nearing completion. Customer qualifications for these new products are expected to begin late in the third quarter of this year. This expansion will support our aggressive strategy to serve the fast-growing local Asian markets.

Sales in Performance Materials, formerly Paper and Carpet, were $69.6 million in the second quarter of 2013 compared to $90.5 million in the second quarter of last year. The sales decline was driven by lower year-over-year volumes and reduced index-based pricing due to a significant drop in the price of butadiene versus the second quarter of last year. OMNOVA has won new commitments in paper chemicals that we expect will significantly offset the previously disclosed volume loss. Shipments began to ramp up in the second quarter for the large number of accounts involved. We expect these wins to have a greater impact on our third and fourth quarter results.

Commissioning and scaleup of OMNOVA's new hollow plastic pigment product were completed in the second quarter. Hollow plastic pigment technology provides opacity and gloss in paper and packaging and can reduce the need for costly ingredients, such as titanium dioxide. The capacity to produce these specialty high-performing emulsion products were converted from existing North American styrene butadiene latex manufacturing capacity or what we referred to as re-purposing as part of OMNOVA's continuing strategy to adjust its manufacturing footprint to meet changing market needs.

During the second quarter, the multiyear decline in industry carpet demand showed signs of turning around. While demand was still down year-over-year, volumes were up double digits sequentially from the first quarter. Customers tell us they are cautiously optimistic that the long-awaited upturn in carpet demand is likely this year as the housing market strengthens. Importantly, carpet producers appear to be turning away from consideration of inferior alternative backing adhesives and staying with styrene butadiene polymers for their carpet backing.

In summary, as we had forecasted previously, OMNOVA's second quarter showed sequential improvement from the first quarter as a result of a number of company actions and improving market trends. We are encouraged by the progress and believe the positive momentum we built in the second half of the -- in the second -- will build in the second half of the year. However, we recognize that risks remain. For example, lower raw material cost, while generally positive for our company, indicate that global volume growth may not be as robust as one would hope.

The European economies are still struggling, and China, while continuing to grow, is not moving as fast -- at as fast a pace as the last couple of years. Third year mortgage rates recently moved from 3.5% of 4.5% over a 2-month period and while still low on a historical basis, could potentially slow down the housing recovery. These global economic dynamics could affect the pace of the company's anticipated volume growth.

But other industry and economic indicators, as well as the improvement actions we have taken, cause us to continue to be enthused about the prospects for the remainder of the year and our ability to continue the positive momentum started in the second quarter. Specifically, the rebound in the housing market should continue to have a positive impact in a number of areas, but particularly in volumes of laminates and carpet chemicals.

The oilfield exploration and services sector remain strong, offering many opportunities for future global growth and expansion for OMNOVA. Retail sales were up 4.3% in May, indicating that the U.S. consumer's balance sheet is stronger and individuals are willing to spend on high-ticket items that incorporate OMNOVA products, such as automobiles, recreational vehicles, appliances and personal devices. Key wins in paper and packaging will help fill recent volume gaps in those markets, as well as our pipeline of new products, which remains strong and deep across all of OMNOVA's business.

On the cost front, the $8 million in ongoing annual cost reductions that we mentioned in the last quarter's conference call are on track. These efforts have been supported by OMNOVA's longstanding commitment to LEAN SixSigma process improvements and our Vision 2014 sustainability actions that are resulting in meaningful reductions in energy and water usage and waste generation. OMNOVA has reduced discretionary spending while continuing to make investments that will drive profitable growth. Examples include the re-purposing of North American styrene butadiene capacity to the production of hollow plastic pigment, a widening global footprint accentuated by the capacity and capability expansion at our chemical plant in Caojing, China and improvements to Engineered Surfaces' global manufacturing footprint.

In addition, operating efficiencies have enabled OMNOVA to reduce headcount year-to-date by approximately 70 positions or 3%, mostly in Asia. At the same time, we were adding resources focused on driving profitable growth. Finally, raw materials have been down year-over-year and are expected to be flat to down for the foreseeable future. As a result of anticipated sequential improvements in the second half of the year, the cost actions we have taken and the growth opportunities we are aggressively pursuing, we continue to expect full year 2013 adjusted income from continuing operations to exceed last year's performance.

Mike and I would now be happy to answer any questions that you have. Operator?

Question-and-Answer Session

Operator

[Operator Instructions] And our first question will come from Mike Sison with KeyBanc.

Michael J. Sison - KeyBanc Capital Markets Inc., Research Division

In terms of the volume you're getting from wins in paper, is that enough to turn the Performance Materials business volumes in the positive over the next couple of quarters?

Kevin M. McMullen

Yes, as we end the year -- in the fourth quarter, we will be positive on a -- we expect to be positive on a year-over-year basis.

Michael J. Sison - KeyBanc Capital Markets Inc., Research Division

Okay. And then if you separate the 2 businesses, carpet and paper, does that get your paper business to a pretty good operating rate? And then is carpet still a little bit more sluggish?

Kevin M. McMullen

The operating rates are improved for a couple of reasons. One is the improved volumes that we expect on a year-over-year basis in the fourth quarter and then the re-purposing of some of our SB assets that we mentioned in the call will help operating rates from a paper standpoint. The carpet still has a ways to go, but we anticipate improved demand from what we're hearing from our carpet customers with housing pickup. And so, that should certainly help that as well.

Michael J. Sison - KeyBanc Capital Markets Inc., Research Division

Right. So in the past that, when we've talked about margin's [poor] [ph] performance for this segment, Performance Materials, raw materials are sort of heading in the right direction or at least staying stable, your volumes are starting to improve. I mean, should we enter '14 something in that mid to high point of the normal range that we've talked about, kind of like that 10 to low-teens range?

Kevin M. McMullen

I think overall for our Performance Chemicals, yes, business we would be at the upper end of that.

Michael J. Sison - KeyBanc Capital Markets Inc., Research Division

Upper end of that range, great. And then one quick one on Engineered Surfaces, it does look like that business is showing good improvement. As you look to the second half of the year, do you continue to see more momentum there?

Kevin M. McMullen

Yes, we do, I think, both on the volume front and then getting the full impact of the cost actions that we have taken and not only the recent headcount reductions we have taken but the full impact of exiting our Columbus, Mississippi plant and moving production to the other facilities for Coated Fabrics. That was a big step forward in our profit improvement for Coated Fabrics, and we continue to take additional actions that we expect to show improvement in the second half.

Operator

Our next question in queue will come from the line of Roger Spitz with Bank of America Merrill Lynch.

Roger N. Spitz - BofA Merrill Lynch, Research Division

I wonder regarding that fiscal 2013 adjusted income from continuing operations guidance. Would it be possible to sort of break down or provide some granularity of the different pieces that will push that along in the second fiscal half? Meaning, what -- how much or what percent from volume -- paper volume recapture versus laminates that you spoke of versus, in the prior call, you spoke of $8 million of cost savings. Is there a way to sort of break that down a little bit?

Michael E. Hicks

I'll give you some guidance on that, Roger. As we look at the third quarter in chemicals, we expect a sequential volume improvement similar to what we had in the second quarter. And again, we're forecasting, again, volume improvement in the fourth quarter, and where the comparisons are very weak versus last year, it should be pretty significantly above. Chemical volumes should be significantly above where they were in the fourth quarter last year. In Engineered Surfaces, while there will be some volume growth, we anticipate, in the housing sector, we're also going to continue to have more operating efficiencies as a result of complete conversion -- the move away from the Columbus plant. So as we look, we've had significant improvement from the first quarter to the second, and we expect, again, more volume-driven than cost reductions. But the volumes should improve in the second half of the year so that we can hit that adjusted continuing income guidance.

Roger N. Spitz - BofA Merrill Lynch, Research Division

Okay, great. And I don't think I heard this during your prepared remarks, but can -- within Performance Chemicals, can you break down the pricing volume for each of Performance Materials and Specialty Chemicals on a year-over-year basis?

Michael E. Hicks

I don't have that available, Roger, but more of the price decrease would have been in Performance Materials, where we have the index pricing. And just as a benchmark, butadiene, which is a key component of [CMAI] [ph] in the second quarter of 2012, that price would have averaged over $1.50, and it was slightly over $0.80 in the second quarter of 2013. So that would have driven down index pricing, which, again, more of the price reductions would have been in Performance Materials than Specialty.

Roger N. Spitz - BofA Merrill Lynch, Research Division

Okay. Are you still looking for $33 million of fiscal '13 CapEx?

Michael E. Hicks

I'd say as we look at the volumes in the house, some of our projects are ramping up, we would guide that down to below $30 million now.

Roger N. Spitz - BofA Merrill Lynch, Research Division

Okay. And last, for this fiscal year, do you expect working capital to come in sort of flattish, a use of or a source of cash?

Michael E. Hicks

Well, we're seeing raws drop, especially butadiene has dropped in the month of June, and we expect a further drop in July. If we were to hold at a lower level, we would see working capital being a source. But as you know, things like unplanned outages or hurricanes can make that turnaround real fast. But again, if we look at the trends and where we think butadiene, which is our biggest buy, will be as we approach year-end, we think that working capital should be a positive.

Kevin M. McMullen

I think the other thing on working capitals, we've built inventory purposely last year for the Columbus transition, and we would expect -- we're working that down throughout the year in Engineered Surfaces. So that should help contribute to a working capital improvement as well.

Operator

Our next question in queue, that will come from the line of David Begleiter with Deutsche Bank.

Jermaine Brown - Deutsche Bank AG, Research Division

This is Jermaine Brown calling in for David Begleiter. A few of my questions have already been answered. I guess beginning with Engineering Surfaces, your margins have improved on a sequential and year-over-year basis. I guess, how should we think about the margins for the remainder of the year? And what's the earnings potential for this business going forward?

Kevin M. McMullen

Yes. So our longer-term objective for profitability for this business is double-digit operating profit, which would be probably 12% to 13% EBITDA margins. I don't believe we will be there at year-end, but that is certainly the focus we would expect. The laminates business is very solid in that expectation. The Coated Fabrics business, we continue to make progress on improving the profitability of that business, and we think we will be kind of high-single digits at year-end and then improve from there into 2014.

Jermaine Brown - Deutsche Bank AG, Research Division

Understood. And what -- okay. Last quarter, you mentioned that your North American SB Latex capacity utilization was running at about 65% to 70% versus the industry at about 60% to 65%. Has that improved in Q2?

Kevin M. McMullen

No. With volume down still and volumes still remaining weak in carpet and paper, we don't see that those numbers have moved a whole lot.

Operator

[Operator Instructions] Next in queue is Laurence Alexander with Jefferies.

Laurence Alexander - Jefferies & Company, Inc., Research Division

A couple of questions. First, just on the price bridge versus raw materials, if butadiene does stay lower for longer, do you expect to get pricing ahead of raw materials by the end of the year?

Kevin M. McMullen

I think it's too soon to estimate that exactly, Laurence, because, again, we continue to be surprised with the movement of some raws here this year. So I would hope that, that would be positive by year-end, but again, we're trying to sort through some new data. For instance, styrene has been higher year-over-year, which has been driven by increase in pricing on benzene. That wasn't exactly what we expected, and butadiene has been dropping. So we need to put that through the model and get a better sense as to where we think some of these costs are in the fourth quarter before we can state positively or affirmatively on that.

Laurence Alexander - Jefferies & Company, Inc., Research Division

And then can you give a bit more detail on what's happening with the new -- the hollow sphere pigment substitutes and the bio-based copolymers?

Kevin M. McMullen

Yes. So hollow plastic pigment, we are seeing very good progress there. The manufacturing ramp-up is going quite well. The quality and performance of our material, we have significantly improved from the transition from Dow producing that for us so that's been a real positive, and that's being clearly understood by our customers. And the ramp-up with our customers is progressing, and we have significant commitments from the customers. It's going to take time to transition that, but that is well underway and by all accounts, progressing well. So we're very encouraged by that.

Michael E. Hicks

On the bio-based copolymers within our portfolio, we were looking to provide that as an alternative to styrene butadiene latex. And with the pricing having dropped on some of the raw materials, we've seen a little bit slower trialing and a little bit slower customer interest, as of right now, of the product. We will putting starch in as a -- primarily, as a substitute to take some more expensive monomers out. So again, with the lower pricing that we're seeing in our raws, that trend has slowed down a bit.

Laurence Alexander - Jefferies & Company, Inc., Research Division

And then, lastly, can you give a little bit more detail on what you're seeing in China, particularly around the startup of the new plant, if there's anything that's changed on the expected economics there?

Kevin M. McMullen

No, I think we're still very positive, very optimistic. We expect customer trials for the new polymers that we'll be producing there to start at the end of the third quarter and then ramp from there. By all accounts, there's still a great deal of interest in the marketplace. In the part of the plant that was existing where we're making tire cord adhesive, we've seen a very solid ramp-up there with customers. There are even -- the tire market is certainly off from where it had been historically. So in general, I think everything still looks very good, and we are on pace for that plant and for that expansion to come online.

Operator

Our next question in queue will come from the line of Curtis Bush with CIFC.

Curtis Bush - CIFC

Can you quantify the impact within the Performance Materials from the 2012 contract loss from a revenue perspective?

Michael E. Hicks

That would have been about 15 million pounds for the quarter and the revenue loss on that would have been, let's see, roughly $18 million.

Curtis Bush - CIFC

Okay, that's helpful. And I may have missed this earlier, but can you just comment on kind of what you're seeing out of Europe in your kind of transportation and construction markets?

Kevin M. McMullen

Yes, I think, overall, Europe still has its challenges. Sequentially, we saw some improvement for sure, so we were encouraged by that. I think, transportation, new OEM builds are down in Europe for sure. But -- so I think Europe still has challenges, but we are finding new opportunities in eastern Europe that have growth prospects as Europe continues to work through some of the tougher market conditions.

Curtis Bush - CIFC

And how do you see that account for the full year to the -- at least, the remainder of this year?

Kevin M. McMullen

Yes, I don't -- we're not anticipating a lot of improvement in Western Europe from an overall economy and market standpoint for the rest of the year. We think there'll be small but incremental opportunities in Eastern Europe, but we're not expecting a great deal of improvement in Western Europe.

Operator

At this time, there are no additional questions in queue. Please continue.

Kevin M. McMullen

Okay. Well, I'd like to thank you all for joining us for the second quarter results. We look forward to speaking with you again at our third quarter. Operator, if you want to give the replay information, that will be terrific. Have a great day.

Operator

And ladies and gentlemen, a digitized telephone replay is scheduled from today, June 27, at 1:00 p.m. Eastern time until July 18 at 11:59 p.m. Eastern time. You may access the AT&T Executive Playback service at any time by dialing (800) 475-6701 and entering the access code of 294077. International participants may dial (320) 365-3844. Also, an audio replay will be available on the OMNOVA Solutions website at www.omnova.com until noon Eastern time on July 18.

And that does conclude your conference call for today. We do thank you for your participation and for using AT&T's Executive Teleconference. You may now disconnect.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: OMNOVA Solutions' CEO Discusses F2Q 2013 Results - Earnings Call Transcript
This Transcript
All Transcripts