OMNOVA Solutions Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended November 30, 2012. For the quarter, the company reported net sales decreased $47.5 million, or 15.8%, to $253.9 million compared to $301.4 million for the fourth quarter of 2011. The sales decrease was driven by price reductions of $28.0 million, or 9.3%, reduced volumes of $16.4 million, or 5.5%, and unfavorable foreign currency translation effects of $3.1 million, or 1.0%. Net income was $0.7 million, or $0.01 per diluted share, compared to a loss of $10.4 million, or $0.23 per diluted share, for the fourth quarter of 2011. Income from continuing operations for the fourth quarter of 2012 was $1.2 million, or $0.02 per diluted share, compared to $6.3 million, or $0.14 per diluted share, for the fourth quarter of 2011. Adjusted income from continuing operations was $3.2 million, or $0.07 per diluted share, for the fourth quarter of 2012, compared to $5.9 million, or $0.13 per diluted share, in the fourth quarter of 2011. Results in the quarter were negatively impacted by LIFO expense of $1.8 million (net of tax), or $0.04 per diluted share, primarily related to the inventory build for the transition of coated fabrics manufacturing to other, more efficient company's plants due to the wind-down of manufacturing operations in Columbus, Mississippi. Capital expenditures were $13.3 million against $8.6 million a year ago. Income from continuing operations before income taxes was $2.6 million against $10.8 million a year ago.

For the year, the company reported net sales decreased $75.6 million, or 6.3%, to $1,125.5 million compared to $1,201.1 million for 2011. The sales decrease was driven by reduced volumes of $60.4 million, or 5.0%, which was partially offset by price increases of $0.8 million, or 0.1%. Currency translation effects were $16.0 million unfavorable, or 1.4% of sales. Net income for 2012 was $27.6 million, or $0.60 per diluted share, compared to a loss of $2.8 million, or $0.06 per diluted share, for 2011. Income from continuing operations for 2012 was $25.7 million, or 0.56 per diluted share, compared to $16.7 million, or $0.37 per diluted share, for 2011. Adjusted income from continuing operations was $28.5 million, or $0.63 per diluted share, for 2012, compared to adjusted income from continuing operations of $24.8 million, or $0.55 per diluted share, in fiscal 2011. As of November 30, 2012, the company's debt of $453.6 million was comprised of $250.0 million of 7.875% senior notes maturing in 2018, a term loan of $196.0 million maturing in 2017 and $7.6 million of foreign operations borrowings. Net debt declined $49.2 million to $307.3 million for the year ended November 30, 2012 from $356.5 million a year ago. Capital expenditures were $32.8 million against $24.1 million a year ago. Income from continuing operations before income taxes was $36.9 million against $30.1 million a year ago. EBITDA was $105.4 million against $101.6 million a year ago. Adjusted EBITDA was $111.9 million against $114.2 million a year ago.

The company reported asset impairment charges for the fourth quarter ended November 30, 2012 was $0.8 million against $0.7 million a year ago.

For the fiscal 2013, the company encouraged by a number of actions and market developments that are expected to gain traction starting in the second quarter and, as a result, the company believes that it will continue to improve earnings in fiscal 2013.

During 2012, the Company was transitioning the manufacturing of coated fabric products from Columbus to other, more efficient manufacturing sites of the company. The company plans to cease manufacturing activities at the Columbus site in February 2013.