CLEVELAND – OM Group Inc. reported a fourth-quarter net loss of $32.72 million, compared to a $47.99 million net income in 2007.
 
Included in the 2008 period was a non-cash inventory charge of $26.9 million, a non-recurring income tax benefit of $21.5 million and a non-cash goodwill impairment charge of $8.8 million.
 
For the year, net income dropped to $135 million, compared to $249.9 million last year.
 
Net sales for the quarter fell 4% to $296.6 million, on lower volume, a drop in metal resale and lower pricing in Advanced Materials. Year-over-year, net sales climbed 70% to a record $1.7 billion. The increase was influenced by higher product selling prices, acquisitions, cobalt metal resale and growth in sales volume.
 
Gross profit for the quarter declined to $3.6 million, compared to $84.2 million for the fourth quarter in 2007, on lower volumes and the drop in cobalt prices. Year-over-year, gross profit grew by 12.6% to $352.5 million.
 
Cash flow rose to $119.7 million for the quarter and $172.1 million for the year.
 
The company plans to continue implementing its growth strategy for 2009, despite the unstable economy and flat cobalt prices. Among the measures planned are reprioritizing capital projects, eliminating salary increases when possible and cuts to its workforce. “With the benefit of a strong, clean balance sheet, we are cautiously optimistic that we are in a sound position to manage through the economic uncertainty ahead,” said Joseph Scaminace, chairman and CEO.