OM Group, Inc. has reported that full year consolidated net sales increased 27% in 2011 to $1,514.5 million, with net income of $37.9 million. Excluding special items such as acquisition-related expenses, adjusted income from continuing operations was $120.9 million, compared with $88.2 million in 2010.
“In many ways, 2011 was a breakthrough year for OM Group,” said Joseph Scaminace, Chairman and Chief Executive Officer. “We continued to grow our business profitably, achieving adjusted EBITDA of $224 million, and delivered our sixth consecutive year of positive cash flow from operations.”
“Through the creation of our Magnetic Technologies platform and our market-driven initiatives, we now have greater opportunity to expand in targeted higher-growth, higher-margin applications for mobile energy storage, electronic devices, renewable energy and transportation. Our acquisition of Rahu Catalytics secured the technology to support our product development pipeline for advanced additives used in coating and composites. And we are working more closely with our customers, using our application expertise to meet their performance requirements and create value,” continued Scaminace.
In the fourth quarter of 2011, net sales were $438.6 million, an increase of 50% compared with the fourth quarter of 2010 due to the VAC acquisition. Net income in the fourth quarter of 2011 was $50.9 million. Adjusted income from continuing operations was $23.3 million, compared with $22.2 million during the 2010 period.
“During the fourth quarter we felt the impacts of the slowing European economy and disruptions to the electronics industry from the Thailand floods,” stated Scaminace. “We expect these performance challenges to begin to moderate in the second quarter of 2012, and will closely manage spending across the company until business conditions improve. At the same time, our strong balance sheet enables us to continue to invest in those initiatives that support our strategy to create long-term shareholder value.”
Edited by: Paul Whittaker, Editor ipmd.net, [email protected]