OMN OMNOVA Solutions Inc

FAIRLAWN, Ohio, Sept. 30 /PRNewswire-USNewswire/ -- Management at Omnova Solutions (NYSE: OMN) reported today that profit for the third-quarter declined by 65%. In part, the steep decline was attributed to the ongoing strike by United Steelworkers (USW) Local 748L at Omnova's decorative products facility in Columbus, Mississippi. The company pegged strike-related losses for the quarter at $3.9 million.

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About 180 members of USW Local 748L have been on strike since May 21, 2010. The union workers are fighting the company's demands to slash seniority rights, pensions and healthcare.

The impact of the strike on the company's bottom line appears to have exceeded the estimates put forward by CEO Kevin McMullen during a second-quarter earnings report this past July.

At that time, McMullen indicated that if the strike was not settled it could slash earnings by six to eight cents per share. For the third quarter, Omnova posted a profit of eight cents per share, down from twenty-three cents a year earlier and far below the twenty-two cents expected by analysts. The strike appears to have cut into Omnova's earnings by as much as 8.7 cents per share.

"We've been in contact with Omnova customers and they've assured us that they are hoping for a quick end to this dispute," said USW District 9 Director Daniel Flippo. "Omnova needs to recognize that there is no substitute for the experience and loyalty provided by the highly-skilled members of USW Local 748L."

"This company needs to come to the bargaining table and negotiate a fair and equitable contract, which will help put it back on the path to profitability," continued Flippo. "We're ready to bargain around the clock," he said, "but we're not going to stop fighting until this company agrees to a fair deal."

SOURCE United Steelworkers (USW)