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[November 2002]
Third Quarter Results for OM Group
OM Group Inc (Cleveland, OH, USA) reported net sales for the third quarter of 2002 of US$1.357 billion compared to US$833.3 million last year. Net income before the non-recurring charge (the 'Charge') for the write-down of inventories increased by 10.2% to US$22.6 million. Earnings per diluted share prior to the Charge were US$0.79, down 6% from the same period in 2001 due to a higher number of shares outstanding. Including the Charge, the company reported a loss of US$71.2 million, or US$2.52 per diluted share.For the nine months ended 30 September 2002, net income before the Charge increased by 18.5% to US$71.4 million.
Chairman and CEO James Mooney said: "The current difficult environment, including the low price of cobalt, will continue for the foreseeable future, resulting in further deterioration of operating results in the fourth quarter.
"This requires that we take bold steps to refocus the Company's strategy, discontinue unprofitable operations and implement aggressive cost reductions. From a liquidity standpoint, capital expenditures will be reduced, working capital will be managed aggressively and non-core assets will be sold."
ENDS