NEW YORK (TheStreet) -- Shares of OMNOVA Solutions (OMN) are falling by 18.26% to $5.73 on heavy volume in late morning trading Thursday after the company reported a decline in its 2014 third-quarter net income to $1.8 million, or 4 cents per diluted share, compared to $9 million, or 19 cents per diluted share for the year-ago quarter.
The company, which provides emulsion polymers, specialty chemicals, and decorative and functional surfaces for a variety of industries, said adjusted income dropped to $2.2 million, or 5 cents per diluted share, from $8.7 million, or 19 cents per diluted share in the 2013 third quarter.
Analysts polled by Thomson Reuters expected OMNOVA Solutions to post earnings of 18 cents a share.
Net sales fell by 3.5% to $252.1 million in the most recent quarter, down from $261.2 million in the same period last year.
"Overall, third quarter results were disappointing as the increases in volume that we experienced in key specialty chemical product lines, which include oil and gas and specialty coatings, increases in Asian volumes from new manufacturing capacity at our Caojing, China facility and in Engineered Surfaces' laminates product line, were not able to offset the declines in North American Performance Materials," said CEO Kevin McMullen.
Separately, TheStreet Ratings team rates OMNOVA SOLUTIONS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: