OM Group 4Q profit doubles as sales jump
CLEVELAND—Specialty chemicals maker OM Group Inc. said Tuesday that its fourth-quarter profit doubled, boosted by contributions from a recent acquisition.
For the quarter ended Dec. 31, OM earned $50.9 million, or $1.69 per share, up from $23.8 million, or 78 cents per share, in the same quarter of 2010.
Excluding one-time items, the company posted an adjusted profit of 73 cents per share for the recent quarter. Analysts, on average, expected adjusted profit of 91 cents per share, according to a FactSet poll.
Sales rose 50 percent to $438.6 million from $293.1 million, largely as a result of contributions from the recent acquisition of VAC Holding, a German materials and technology company. Analysts expected revenue of $459.1 million.
Cleveland-based OM said the recent quarter's results were hurt by the slowing European economy and disruptions related to flooding in Thailand.
While OM said it expects market conditions to start to improve during the current quarter, it will closely watch spending until they do.
For all of 2011, OM's net income totaled $37.9 million, or $1.22 per share, down from $83.4 million, or $2.74 per share, in 2010. Revenue rose to $1.51 billion from $1.2 billion.
In midday trading, OM shares fell 78 cents, or 2.6 percent, to $29.71.