CLEVELAND – OM Group Inc. reported second-quarter net sales plunged 60% from last year to $203.4 million as lower cobalt prices affected prices in its Advanced Materials segment.

By segment, Advanced Materials saw sales fall from $359.1 million last year to $104 million; Specialty Chemicals had $100.3 million in sales for the quarter, compared to $152.5 million last year. Despite the year-over-year drops, volume did improve over last quarter.

“Volume in many of our end markets, most notably printed circuit board and semiconductor, improved sequentially from the first quarter of 2009 to the second quarter, and continue to do so in the third quarter,” says Joseph Scaminance, chairman and CEO.

OMG is the parent company of Electrochemicals.

For the first half of the fiscal year, net sales were $395.1 million, down from $991.6 million last year.

For the quarter ended June 30, net loss was $35.3 million, compared to net income of $56.2 million last year. First-half net loss was $43.6 million, down from net income of $111.5 million year-over-year.

The company reported second-quarter gross profit slipped from $126 million last year to $34.4 million on lower sales prices and volume. For the first six months, gross profit was $61 million, compared to $262.7 million in 2008.