OM Group, Inc. based in Cleveland, Ohio, USA, recently reported its financial results for the first quarter ended March 31, 2012. Consolidated net sales increased 41% compared with last year’s comparable quarter, increasing to $466.2 million primarily as a result of the August 2011 acquisition of magnet producer VAC and growth in its Battery Technologies business, but partly offset by lower volumes and prices in its Advanced Materials business and lower volumes in its Specialty Chemicals business.
“Our first quarter results reflect significant contributions from our two newest business platforms, Magnetic Technologies and Battery Technologies,” stated 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 unfavourably 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.
Posted by: Paul Whittaker, Editor ipmd.net, [email protected]