OM Group Reports 1999 First Quarter, Record Net Income

and Earnings Per Share Increases CLEVELAND (PROTEXT) - OM Group, Inc. (NYSE: OMP) today reported record net income and record earnings per diluted share for its first quarter ended March 31, 1999. The producer of value-added, metal-based specialty chemicals and powders reported net sales for the period of $114.1 million compared to $138.1 million a year ago, while net income increased to $13.0 million, or $.54 per diluted share, from $11.2 million, or $.49 per diluted share, in the 1998 first quarter. OMG's 1999 first quarter increases in net income and earnings per share were achieved primarily through an increase in physical volume of products sold and improvements in product mix. The hard metal and diamond tool, memory disk, and PVC additives product areas were particularly strong due to improvements in market demand and market share. The first quarter decline in sales dollars was due to lower product selling prices which resulted from the decline, relative to last year's first quarter, in cobalt, nickel, and copper raw material prices. "We are particularly pleased that we have strong, high value added end markets and were able to overcome the short-term lag in selling price increases that occurs when cobalt raw material prices escalate rapidly, as they did in the last two months of the first quarter," said James P. Mooney, Chairman and Chief Executive Officer of OM Group, Inc. Added Mooney, "We expect to continue to enhance shareholder value in 1999 by utilizing our expanded production capabilities and capacity to address the market demand for new and existing products." OMG's principal product lines include battery chemicals, cobalt and nickel salts, copper powders, electroless nickel, extra fine cobalt and tungsten powders, metal carboxylates, and plastic additives sold to diverse industries. Headquartered in Cleveland, Ohio, OMG operates manufacturing facilities in North America, Europe and Asia. It has approximately 1,000 employees worldwide. OM GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Thousands of dollars, except share data) (Unaudited) March 31, December 31, 1999 1998 ASSETS CURRENT ASSETS Cash and cash equivalents $9,824 $7,750 Accounts receivable 84,636 80,906 Inventories 332,106 283,264 Other current assets 29,187 48,321 Total Current Assets 455,753 420,241 PROPERTY, PLANT AND EQUIPMENT Land 4,316 4,241 Buildings and improvements 80,882 80,148 Machinery and equipment 259,302 242,137 Furniture and fixtures 12,326 12,242 Total 356,826 338,768 Less accumulated depreciation 97,974 93,423 Total 258,852 245,345 OTHER ASSETS Goodwill and other intangible assets 187,176 188,486 Other assets 20,059 16,647 TOTAL ASSETS $921,840 $870,719 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Current portion of long-term debt $122 $141 Short-term debt -- 2,000 Accounts payable 66,913 76,412 Other accrued expenses 41,435 41,014 Total Current Liabilities 108,470 119,567 LONG TERM LIABILITIES Long-term debt 366,185 309,964 Deferred income taxes 26,478 29,950 Other long-term liabilities 7,492 7,095 STOCKHOLDERS' EQUITY Preferred stock, $0.01 par value: Authorized 2,000,000 shares; no shares issued or outstanding Common stock, $0.01 par value: Authorized 60,000,000 shares; issued 23,959,346 shares 240 240 Capital in excess of par value 258,085 258,085 Retained earnings 165,448 155,691 Treasury stock (256,127 shares in 1999 and 234,847 shares in 1998, at cost) (8,910) (8,494) Accumulated other comprehensive income (1,648) (1,379) Total Stockholders' Equity 413,215 404,143 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $921,840 $870,719 OM GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Thousands of dollars, except per share data) (Unaudited) Three Months Ended March 31, 1999 1998 OPERATIONS Net sales $114,113 $138,098 Cost of products sold 77,004 103,468 Total 37,109 34,630 Selling, general and administrative expenses 14,306 14,097 INCOME FROM OPERATIONS 22,803 20,533 OTHER INCOME (EXPENSE) Interest expense (4,450) (3,979) Interest income 15 108 Foreign exchange gain 400 178 Total (4,035) (3,693) INCOME BEFORE INCOME TAXES 18,768 16,840 Income taxes 5,795 5,671 NET INCOME $12,973 $11,169 Net income per common share $0.55 $0.51 Net income per common share - assuming dilution $0.54 $0.49 Dividends paid per common share $0.10 $0.09 Weighted average shares outstanding (000) Net income per common share 23,703 22,064 Net income per common share - assuming dilution 24,245 22,820 ots Original Text Service: OM Group, Inc. Internet: http://www.newsaktuell.de Contact: Kristine A. Stepnowski of OM Group, 216-781-0083 Web site: http://www.omgi.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT