OM Group Reports 1999 First Quarter, Record Net Income

and Earnings Per Share Increases CLEVELAND (PROTEXT) - OM Group, Inc. (NYSE: OMP) todayreported record net income and record earnings per diluted sharefor its first quarter ended March 31, 1999. The producer of value-added, metal-based specialty chemicalsand powders reported net sales for the period of $114.1 millioncompared to $138.1 million a year ago, while net income increasedto $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 earningsper share were achieved primarily through an increase in physicalvolume of products sold and improvements in product mix. The hardmetal and diamond tool, memory disk, and PVC additives productareas were particularly strong due to improvements in marketdemand and market share. The first quarter decline in salesdollars was due to lower product selling prices which resultedfrom the decline, relative to last year's first quarter, incobalt, nickel, and copper raw material prices. "We are particularly pleased that we have strong, high valueadded end markets and were able to overcome the short-term lag inselling price increases that occurs when cobalt raw materialprices escalate rapidly, as they did in the last two months ofthe first quarter," said James P. Mooney, Chairman and ChiefExecutive Officer of OM Group, Inc. Added Mooney, "We expect to continue to enhance shareholdervalue in 1999 by utilizing our expanded production capabilitiesand capacity to address the market demand for new and existingproducts." OMG's principal product lines include battery chemicals,cobalt and nickel salts, copper powders, electroless nickel,extra fine cobalt and tungsten powders, metal carboxylates, andplastic additives sold to diverse industries. Headquartered in Cleveland, Ohio, OMG operates manufacturingfacilities in North America, Europe and Asia. It hasapproximately 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

240240

Capital in excess of par

value

258,085258,085

Retained earnings

165,448155,691

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

413,215404,143

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 otsOriginal Text Service: OM Group, Inc. Internet:http://www.newsaktuell.de Contact: Kristine A. Stepnowski of OMGroup, 216-781-0083 Web site: http://www.omgi.com

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