OM Group, with headquarters in Cleveland, Ohio, USA, and manufacturing facilities in the Americas, Europe, Asia and Africa, has announced financial results for the third quarter ended September 30, 2011.
Net sales in the third quarter were $415.1 million, an increase of 40% compared with the third quarter of 2010. The most significant driver of the increase was the acquisition of VAC Holding on August 2, 2011. Excluding this acquisition, net sales grew 4% as higher volumes in battery materials, semiconductors, ceramics, chemical and defence offset lower price in Advanced Materials.
“Strong organic volume growth in Engineered Materials, favourable pricing in Specialty Chemicals, plus the significant sales contribution from our Magnetic Technologies acquisition all contributed to the strong top-line growth we achieved during the most recent quarter,” stated Joseph Scaminace, Chairman and Chief Executive Officer. “Adjusted for special items, income from continuing operations surged 66% compared with last year, even as we faced increasing challenges from cobalt supply chain fundamentals, further testimony to the efficacy of our diversification efforts,” he added.
As a result of the acquisition of VAC Holding on August 2, 2011, the Company’s segment formerly known as Advanced Materials was re-named Engineered Materials. The Engineered Materials segment includes the company’s existing Advanced Materials business and Magnetic Technologies, which consists of VAC Holding.
Net sales were $260.2 million, up 75%, due primarily to $106.6 million from Magnetic Technologies for two months since the acquisition
Advanced Materials product sales volumes rose 7%, primarily due to growth in battery materials and ceramics; other volume increased 35% due to higher copper contained in the mix of raw material feed
Net sales were $120.6 million, up 6%. The company stated that demand was mixed in electronic technologies as semiconductor volumes improved but printed circuit board and memory disk were lower; Advanced Organics volumes grew 3%.
Net sales were $34.7 million, down 3%. Improved volumes in defence were offset by lower aerospace volumes
“As we near the end of 2011 and begin to establish plans for 2012, we remain optimistic regarding the long-term growth prospects of the markets we serve, while mindful of the near-term macroeconomic challenges we face,” stated Scaminace.
“We will continue to aggressively invest in organic growth opportunities as well as strategic and tactical acquisition opportunities, particularly in sectors aligned with growth trends such as clean, affordable energy, proliferation of portable power, evolution of electronic devices, and need for sustainable products and processes. We are committed to creating shareholder value by utilizing our strong, flexible balance sheet to both expand our position within existing markets as well as enter strategic adjacent markets,” he concluded.
Edited by: Paul Whittaker, Editor ipmd.net, [email protected]