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OM Group Reports Results for 2012 First Quarter - Yahoo! Finance
OM Group Reports Results for 2012 First Quarter
- Strong revenue and adjusted EBITDA growth driven by acquisition -
Press Release: OM Group, Inc. – 9 hours ago.. .
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.OM Group Inc.
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CLEVELAND, May 3, 2012 /PRNewswire/ -- OM Group, Inc. (OMG) today announced financial results for the first quarter ended March 31, 2012.
First quarter consolidated net sales increased 41 percent compared with last year's comparable quarter, increasing to $466.2 million primarily as a result of the August 2011 acquisition of VAC and growth in its Battery Technologies business, partly offset by lower volumes and prices in its Advanced Materials business and lower volumes in its Specialty Chemicals business. Income from continuing operations was $12.1 million, or $0.38 per diluted share. Excluding non-cash charges related to the VAC inventory purchase accounting step-up, adjusted income from continuing operations was $23.0 million, or $0.72 per diluted share, compared with $30.9 million, or $1.01 per diluted share, during the first quarter of 2011. Adjusted EBITDA was $72.3 million in the 2012 period compared to $51.1 million in the 2011 period.
"Our first quarter results reflect significant contributions from our two newest business platforms, Magnetic Technologies and Battery Technologies," said Joe Scaminace, Chairman and CEO of OM Group, Inc. "By executing our diversification strategy, we have created a portfolio of businesses capable of delivering solid financial results in a quarter with difficult cobalt market fundamentals. Most of the Company's profitability is now derived from our non-cobalt businesses."
The Company commented that cobalt market fundamentals improved slightly toward the end of the quarter but compared unfavorably with the prior year first quarter, negatively impacting its Advanced Materials business. The Specialty Chemicals business continued to be affected by customer disruptions caused by Thailand flooding and European economic pressures. Operating activities consumed $14 million of cash in the first quarter of 2012 due to higher working capital levels. The Company finished the first quarter with $270 million of cash and $678 million of debt.
Looking into the second quarter, the Company commented that operating cash flow is expected to improve from first quarter levels as inventory becomes better aligned with customer demand, and profits are expected to decline due to European and certain end market weaknesses, the scheduled annual maintenance shut-down at its Kokkola refinery, and lower rare-earth pricing benefits.
"We have created a diversified materials company exposed to end markets with healthy long-term growth drivers," said Mr. Scaminace. "We have several attractive strategic platforms that we can build-out, further enhancing growth and returns. And we have the financial strength and flexibility to support our strategic transformation and create long-term shareholder value."
Presentation of Non-GAAP Financial Information
The Company is including certain non-GAAP financial measures, including adjusted operating profit, adjusted income from continuing operations and adjusted EBITDA, in this press release and the corresponding presentation materials. The Company believes that these non-GAAP financial measures facilitate a comparative assessment of the Company's operating performance and enhance investors' understanding of the performance of the Company's operations during 2012 and the comparability of the 2012 results to the results of the corresponding prior period. The non-GAAP financial measures are defined and reconciled to applicable U.S. GAAP measures in this release. The non-GAAP financial information should not be construed as an alternative to reported results determined in accordance with U.S. GAAP.
WEBCAST INFORMATION
OM Group has scheduled a conference call and live audio broadcast on the Web for 10 a.m. Eastern time today. Investors may access the live audio broadcast by logging on to
OM Group : Investor Relations : Corporate Overview. A copy of management's presentation materials will be available on OMG's website at the time of the call. The company recommends visiting the website at least 15 minutes prior to the webcast to download and install any necessary software. A webcast audio replay will be available on the "Investor Relations - Presentations" page of the company's website three hours after the call.
ABOUT OM GROUP, INC.
OM Group, Inc. (OMG) develops the innovative materials, systems and technologies necessary to power fast-growing, global applications such as mobile energy storage, electronic devices, renewable energy and automotive systems. With 2011 pro forma net sales of $1.9 billion, OM Group is headquartered in Cleveland, Ohio and operates manufacturing facilities in North America, Europe, Asia and Africa. For more information, visit the company's website at
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