UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
Commission File Number 0-22572
OM GROUP, INC.
(exact name of registrant as specified in its charter)
Delaware 52-1736882
(state or other jurisdiction of (I.R.S., Employer
incorporation or organization) Identification Number)
Tower City
50 Public Square
3800 Terminal Tower
Cleveland, Ohio 44113-2204
(Address of principal executive offices)
(zip code)
(216) 781-0083
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities and
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes __X__ __No__
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of June 30, 1997: Common Stock, $.01 Par
Value - 22,050,602 shares.
<PAGE>
INDEX
OM GROUP, INC.
Part I. Financial Information
Item 1. Financial Statements
Condensed consolidated balance sheets -- June 30, 1997 and
December 31, 1996
Condensed consolidated statements of income -- Three months ended
June 30, 1997 and 1996; Six months ended June 30, 1997 and 1996
Condensed consolidated statements of cash flows -- Six months
ended June 30, 1997 and 1996
Notes to condensed consolidated financial statements -- June 30,
1997
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Part II. Other Information
Item 1. Legal Proceedings - Not applicable
Item 2. Changes in Securities - Not applicable
Item 3. Defaults upon Senior Securities - Not applicable
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other information - Not applicable
Item 6. Exhibits and Reports on Form 8-K
(11) Statement regarding computation of earnings per share
(15) Independent Accountants' Review Report
(15) Letter re: Unaudited Interim Financial Information
(27) Financial Data Schedule
-1-
<PAGE>
Part I Financial Information
Item 1 Financial Statements
OM GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Thousands of dollars)
(Unaudited)
June 30, December 31,
1997 1996
--------- ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 8,917 $ 7,818
Accounts receivable 75,156 60,054
Inventories 254,564 195,050
Other current assets 7,645 8,245
-------- --------
Total Current Assets 346,282 271,167
PROPERTY, PLANT AND EQUIPMENT
Land 2,705 467
Buildings and improvements 48,072 40,569
Machinery and equipment 149,827 122,695
Furniture and fixtures 6,386 4,074
-------- --------
206,990 167,805
Less accumulated depreciation 65,297 57,184
-------- --------
141,693 110,621
OTHER ASSETS
Unprocessed inventory 27,499
Goodwill and other intangible assets 117,631 23,036
Other assets 9,164 6,310
-------- --------
TOTAL ASSETS $614,770 $438,633
======== ========
-2-
<PAGE>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $ 2,142 $ 3,586
Accounts payable 97,560 77,330
Other accrued expenses 15,835 16,390
-------- --------
Total Current Liabilities 115,537 97,306
LONG-TERM LIABILITIES
Long-term debt 178,148 109,295
Contract payable 27,499
Deferred income taxes 27,562 17,773
Other long-term liabilities 7,488 1,438
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 30,000,000 shares;
issued 22,209,375 shares at June 30, 1997
and 18,759,346 shares at December 31, 1996 222 188
Capital in excess of par value 189,330 102,125
Retained earnings 100,884 86,345
Treasury stock (158,773 shares at June 30, 1997
and 141,432 shares at December 31, 1996,
at cost) (3,829) (3,095)
Foreign currency translation adjustments (572) (241)
-------- --------
Total Stockholders' Equity 286,035 185,322
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $614,770 $438,633
======== ========
See notes to condensed Consolidated Financial Statements
-3-
<PAGE>
Part I Financial Information
Item 1 Financial Statements
OM GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Thousands of dollars, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ---------------------
1997 1996 1997 1996
-------- -------- -------- ---------
OPERATIONS
Net sales $124,334 $101,485 $234,389 $204,338
Cost of products sold 94,851 80,455 178,328 163,097
------- ------- ------- -------
29,483 21,030 56,061 41,241
Selling, general and
administrative expenses 11,614 7,946 22,496 15,899
------- ------- ------- -------
INCOME FROM OPERATIONS 17,869 13,084 33,565 25,342
OTHER INCOME (EXPENSE)
Interest expense (3,488) (1,860) (7,154) (3,754)
Interest income 41 97 62 131
Foreign exchange gain 65 42 350 212
------- ------- ------- -------
(3,382) (1,721) (6,742) (3,411)
------- ------- ------- -------
INCOME BEFORE INCOME TAXES 14,487 11,363 26,823 21,931
Income taxes 4,908 3,780 9,028 7,197
------- ------- ------- -------
NET INCOME $ 9,579 $ 7,583 $17,795 $14,734
======= ======= ======= =======
Net income per share $0.44 $0.39 $0.87 $0.76
Dividends paid per common share $0.08 $0.07 $0.16 $0.14
Weighted average shares (000) 21,629 19,294 20,478 19,263
See notes to condensed Consolidated Financial Statements
-4-
<PAGE>
Part I Financial Information
Item 1 Financial Statements
OM GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of dollars)
(Unaudited)
Six Months Ended
June 30,
-------------------
1997 1996
-------- --------
OPERATING ACTIVITIES
Net income $17,795 $14,734
Items not affecting cash:
Depreciation and amortization 10,365 8,674
Foreign exchange (gain) (350) (212)
Deferred income taxes 3,346 1,728
Changes in operating assets and liabilities (38,708) (11,837)
------- -------
NET CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES (7,552) 13,087
INVESTING ACTIVITIES
Expenditures for property, plant and equipment, net (17,602) (11,753)
Acquisition of business (124,547)
------- -------
NET CASH USED IN INVESTING ACTIVITIES (142,149) (11,753)
FINANCING ACTIVITIES
Dividend payments (3,256) (2,735)
Long-term borrowings 156,095 10,220
Payments of long-term debt (88,400) (8,000)
Purchase of treasury stock (734) (109)
Issuance of common stock 87,239
------- -------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 150,944 (624)
Effect of exchange rate changes on cash (144) (90)
------- -------
Increase in cash and cash equivalents 1,099 620
Cash and cash equivalents at beginning of period 7,818 9,098
------- -------
Cash and cash equivalents at end of period $ 8,917 $ 9,718
======= =======
See notes to condensed Consolidated Financial Statements
-5-
<PAGE>
Part I Financial Information
Item 1 Financial Statements
OM GROUP, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited)
June 30, 1997
Note A Basis of Presentation
The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-Q. Accordingly, they do not include all of
the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the
opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair financial
presentation have been included. Past operating results are not
necessarily indicative of the results which may occur in future
periods. For further information refer to the consolidated financial
statements and notes thereto included in the Company's annual report
on Form 10-K for the year ended December 31, 1996.
In February, 1997, Statement of Financial Accounting Standards (SFAS)
No. 128, "Earnings Per Share" was issued. SFAS No. 128 establishes
standards for computing and presenting earnings per share. The
Company must adopt SFAS No. 128 for the year ending December 31, 1997
and believes the effect of adoption will not be material.
Note B Inventories
Inventories consist of the following (in thousands):
June 30, December 31,
1997 1996
-------- ---------
Raw materials and supplies $156,730 $116,389
Finished goods 103,244 87,980
-------- ---------
259,974 204,369
LIFO reserve (5,410) (9,319)
-------- ---------
Total inventories $254,564 $195,050
======== =========
Note C Contingent Matters
The Company is a party to various legal proceedings incidental
to its business and is subject to a variety of environmental and
pollution control laws and regulations in the jurisdictions in
-6-
<PAGE>
Part I Financial Information
Item 1 Financial Statements
which it operates. As is the case with other companies in similar
industries, the Company faces exposure from actual or potential
claims and legal proceedings involving environmental matters.
Although it is very difficult to quantify the potential impact of
compliance with or liability under environmental protection laws,
management believes that the ultimate aggregate cost to the Company
of environmental remediation, as well as other legal proceedings
arising out of operations in the normal course of business, will not
result in a material adverse effect upon its financial condition or
results of operations.
Note D Acquisition, Sale of Common Stock, and Supplemental Earnings Per
Share
On January 21, 1997, the Company acquired SCM Metal Products, Inc.
(SCM) for a purchase price of $122 million. The acquisition of SCM,
which had fiscal 1996 sales of approximately $94 million, has been
recorded using the purchase method of accounting. Accordingly, the
Company's results of operations reflect the impact of SCM from the
date of acquisition.
The acquisition was financed through bank borrowings. In April,
1997, the Company sold 3,450,000 shares of common stock in a public
offering; the net proceeds of $87.2 million were used to pay down a
portion of the debt incurred in acquiring SCM. Had these shares been
issued at the date of acquisition, net income per share for the three
and six months ended June 30, 1997 would have been $.43 and $.84 per
share, respectively.
Pro forma net sales, net income and net income per share as if the
acquisition had occurred as of January 1, 1997, would not be
materially different from that reported in the Condensed Consolidated
Statements of Income for the three and six months ended June 30,
1997. Had the acquisition occurred as of January 1, 1996, pro forma
net sales, net income and net income per share for the three and six
months ended June 30, 1996 would have been as follows (in thousands,
except per share data).
Three Months Ended Six Months Ended
June 30, 1996 June 30, 1996
------------------ ----------------
Net Sales $125,289 $253,172
Net Income $7,848 $14,732
Net Income Per Share $.41 $.76
The aforementioned pro forma information includes the amortization
of goodwill associated with the acquisition over 40 years by the
straight-line method and an interest cost on the funds borrowed to
finance the acquisition.
-7-
<PAGE>
Part I Financial Information
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
Three Months Ended June 30, 1997 Compared to Three Months Ended June
30, 1996
Net sales for the three months ended June 30, 1997 were $124.3
million, an increase of 22.5% compared to the same period for 1996.
The increase in sales resulted principally from an increase in
physical volume of products sold and the January, 1997 acquisition
of SCM, which offset a decline in the Company's cobalt product prices
resulting from lower cobalt market prices.
Cobalt market prices ranged from $22 to $25 per pound during the
three month period ended June 30, 1997 compared to a range of $24 to
$29 per pound during the same period in 1996. The market price of
nickel ranged from $3.18 to $3.48 per pound during the three months
ended June 30, 1997 compared to $3.42 to $3.78 per pound during the
same period in 1996.
Pounds of product sold by the Company were approximately 38.3 million
pounds in the three month period ended June 30, 1997 compared to 24.4
million pounds in the same period in 1996. The following table sets
forth the pounds of carboxylates, salts and powders sold during each
period:
Three Months Ended June 30, Percentage
(in millions of pounds) 1997 1996 Change
---- ---- ---------
Carboxylates 13.1 11.1 18.0%
Salts 15.3 12.6 21.4%
Powders 9.9 0.7 1,314.3%
---- ---- --------
38.3 24.4 57.0%
==== ==== ========
The increase in physical volume of carboxylate products sold resulted
principally from increased sales of carboxylates in the United States
and Europe. The increase in physical volume of salt and powder
products sold primarily reflects the addition of copper salt and
powder products sold, as a result of the SCM acquisition, as
well as increases in fine cobalt powders.
Gross profit increased to $29.5 million for the three month period
ended June 30, 1997, a 40.2% increase over the same period in 1996.
The improvement in gross profit was primarily the result of the
acquisition of SCM, higher physical volumes of product sold, and
-8-
<PAGE>
Part I Financial Information
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations
changes in product mix. Cost of products sold decreased to 76.3% of
net sales for the three months ended June 30, 1997 compared to 79.3%
of net sales during the same period of 1996, primarily because of
lower cobalt prices.
Selling, general and administrative expenses increased to 9.3% of net
sales for the second quarter of 1997 compared to 7.8% of net
sales in the same period in 1996 due to the decline in net sales
resulting from lower cobalt market prices.
Other expense in 1997 was $3.4 million compared to $1.7 million in
1996, due primarily to increased interest expense on higher
outstanding borrowings, as a result of the acquisition of SCM.
Income taxes as a percentage of income before tax increased to 33.9%
for the second quarter of 1997 from 33.3% in the same period in
1996, due primarily to the non-tax deductible goodwill incurred in
the acquisition of SCM.
Net income for the three month period ended June 30, 1997 was $9.6
million, an increase of $2.0 million from the same period in 1996,
due to the aforementioned factors.
Six Months Ended June 30, 1997 Compared to Six Months Ended June 30,
1996
Net sales for the six months ended June 30, 1997 were $234.4 million,
an increase of 14.7% compared to the same period for 1996. The
increase in sales resulted principally from an increase in physical
volume of products sold and the January, 1997 acquisition of SCM,
which offset a decline in the Company's cobalt product prices
resulting from lower cobalt market prices.
Cobalt market prices ranged from $19 to $25 per pound during the six
month period ended June 30, 1997 compared to a range of $24 to $32
per pound during the same period in 1996. The market price of nickel
ranged from $2.88 to $3.66 per pound during the six months ended June
30, 1997 compared to $3.42 to $3.78 per pound during the same period
in 1996.
Pounds of product sold by the Company were approximately 72.7 million
pounds in the six month period ended June 30, 1997 compared to 47.8
million pounds in the same period in 1996. The following table sets
forth the pounds of carboxylates, salts and powders sold during each
period:
-9-
<PAGE>
Part I Financial Information
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations
Six Months Ended June 30, Percentage
(in millions of pounds) 1997 1996 Change
---- ---- ---------
Carboxylates 24.7 21.1 17.1%
Salts 30.2 25.3 19.4%
Powders 17.8 1.4 1,171.4%
---- ---- --------
72.7 47.8 52.1%
==== ==== ========
The increase in physical volume of carboxylate products sold resulted
principally from increased sales of carboxylates in the United States
and Europe. The increase in physical volume of salt and powder
products sold primarily reflects the addition of copper salt and
powder products sold, as a result of the SCM acquisition.
Gross profit increased to $56.1 million for the six month period
ended June 30, 1997, a 35.9% increase over the same period in 1996.
The improvement in gross profit was primarily the result of the
acquisition of SCM, higher physical volumes of product sold, and
changes in product mix. Cost of products sold decreased to 76.1% of
net sales for the six months ended June 30, 1997 compared to 79.8%
during the same period of 1996, primarily because of lower cobalt
prices.
Selling, general and administrative expenses increased to 9.6% of net
sales for the first six months of 1997 from 7.8% of net sales for the
same period in 1996, due to the decline in net sales resulting from
lower cobalt market prices.
Other expense in 1997 was $6.7 million compared to $3.4 million in
1996, due primarily to increased interest expense on higher
outstanding borrowings, as a result of the acquisition of SCM.
Income taxes as a percentage of income before tax increased to 33.7%
as compared to 32.8% during the same period in 1996, due primarily
to the non-tax deductible goodwill incurred in the acquisition of
SCM.
Net income for the six month period ended June 30, 1997 was $17.8
million, an increase of $3.1 million from the same period in 1996,
due to the aforementioned factors.
-10-
<PAGE>
Part I Financial Information
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
The Company increased its revolving credit facility by $120 million
in January, 1997 to finance the acquisition of SCM Metal Products. In
April, 1997, the Company sold 3,450,000 shares of common stock at
$26.75 per share in a public offering. The net proceeds of the
offering, in the amount of $87.2 million, were used to pay down debt
incurred in acquiring SCM. After giving effect to the acquisition
and the offering, the Company's current maximum credit, under its
credit facility, is $180 million.
In June, 1997, the Company signed contracts as a partner to build a
smelter in Lubumbashi, Democratic Republic of Congo. The Company's
approximately $40 million share of the $80 million project will be
funded over the two year construction period, commencing in 1997,
through cash generated by operations and the Company's credit
facilities.
The Company believes that it will have sufficient cash generated by
operations and through its credit facilities to provide for its
future working capital and capital expenditure requirements and to
pay quarterly dividends on its common stock, subject to the Board's
discretion. Subject to several limitations in its credit facilities,
the Company may incur additional borrowings under this line to
finance working capital and certain capital expenditures, including,
without limitation, the purchase of additional raw materials.
Forward Looking Statements
The Company is making this statement in order to satisfy the "safe
harbor" provisions contained in the Private Securities Litigation
Reform Act of 1995. The foregoing discussion includes forward-
looking statements relating to the business of the Company. Forward-
looking statements contained herein or in other statements made by
the Company are subject to uncertainties and factors relating to the
Company's operations and business environment, all of which are
difficult to predict and many of which are beyond the control of the
Company, that could cause actual results of the Company to differ
materially from those matters expressed in or implied by forward-
looking statements. The Company believes that the following factors,
among others, could affect its future performance and cause actual
results of the Company to differ materially from those expressed in
or implied by forward-looking statements made by or on behalf of the
Company: (a) the price and supply of raw materials, particularly
-11-
<PAGE>
Part I Financial Information
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations
cobalt, nickel and copper; (b) continued growth in demand for the
Company's products; (c)risks associated with environmental liability
inherent in the nature of a chemical business; (d) uncertainty
relating to the Company's ability to identify suitable acquisition
candidates and to finance, consummate and assimilate such future
acquisitions; (e) the effect of fluctuations in currency exchange
rates upon the Company's international operations; and (f) the effect
of non-currency risks of investing in and conducting operations in
foreign countries, including those relating to political, social,
economic and regulatory factors.
Part II Other Information
Item 4 Submission of Matters to a Vote of Security Holders
The annual meeting of stockholders of OM Group, Inc. was held on May
6, 1997. An election of Directors was held at which John E. Mooney
and Markku Toivanen were nominated and elected for terms which expire
in the year 2000. The following votes were cast for or were withheld
with respect to each of the nominees:
Director For Withheld
--------------- ---------- --------
John E. Mooney 15,340,309 198,318
Markku Toivanen 15,341,406 197,222
Other directors whose terms of office as Directors continued after
the meeting are:
Term of
Director Office Expires
---------------- --------------
Eugene Bak 1998
Lee R. Brodeur 1999
Frank E. Butler 1998
Thomas R. Miklich 1999
James P. Mooney 1999
Ernst & Young LLP was re-elected as independent auditors:
For - 15,529,741, against - 3,888, abstain - 4,999.
-12-
<PAGE>
Part II Other Information
Item 6 Exhibits and Reports on Form 8-K
The following exhibits are included herein:
Exhibit (11) Statement Regarding Computation of Earnings Per Share
Exhibit (15) Independent Accountants' Review Report
Exhibit (15) Letter re: Unaudited Interim Financial Information
Exhibit (27) Financial Data Schedule
The following report on Form 8-K was filed during the three months
ended June 30, 1997:
1) The Company's Current Report on Form 8-K filed with the
Commission on April 22, 1997 regarding the Company's quarterly
results as of and for the three months ended March 31, 1997.
-13-
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
August 6, 1997 OM GROUP, INC.
James M. Materna
Chief Financial Officer
(Duly authorized signatory of OM Group, Inc.)
-14-
<PAGE>
Exhibit 11
OM GROUP, INC.
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ---------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
Average shares outstanding 20,921,452 18,759,375 19,774,112 18,759,375
Net effect of dilutive
stock options based
on the treasury stock
method 707,658 535,064 703,992 503,670
---------- ---------- ---------- ----------
Totals 21,629,110 19,294,439 20,478,104 19,263,045
========== ========== ========== ==========
Net income (000) $9,579 $7,583 $17,795 $14,734
====== ====== ======= =======
Per share amount $0.44 $0.39 $0.87 $0.76
====== ====== ======= =======
-15-
<PAGE>
Independent Accountants' Review Report
Stockholders and Board of Directors
OM Group, Inc.
We have reviewed the accompanying condensed consolidated balance sheet of OM
Group, Inc. as of June 30, 1997, and the related condensed consolidated
statements of income for the three-month and six-month periods ended
June 30, 1997 and 1996, and the condensed consolidated statements of
cash flows for the six-month periods ended June 30, 1997 and 1996. These
financial statements are the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which will
be performed for the full year with the objective of expressing an opinion
regarding the financial statements taken as a whole. Accordingly, we do not
express such an opinion.
Based on our reviews, we are not aware of any material modifications that
should be made to the accompanying condensed consolidated financial statements
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of OM Group, Inc. as of December
31, 1996, and the related consolidated statements of income, stockholders'
equity, and cash flows for the year then ended, not presented herein, and in
our report dated January 30, 1997, we expressed an unqualified opinion on
those consolidated financial statements. In our opinion, the information set
forth in the accompanying condensed consolidated balance sheet as of December
31, 1996, is fairly stated, in all material respects, in relation to the
consolidated balance sheet from which it has been derived.
/s/ Ernst & Young LLP
Ernst & Young LLP
August 1, 1997
<PAGE>
Acknowledgment of Independent Accountants
Stockholders and Board of Directors
OM Group, Inc.
We are aware of the incorporation by reference in the following Registration
Statements of OM Group, Inc. of our reports dated May 5, 1997 and August 1,
1997, relating to the unaudited condensed consolidated interim financial
statements of OM Group, Inc. which are included in its Form 10-Q for the
quarters ended March 31, 1997 and June 30, 1997:
Registration
Number Description Filing Date
- ------------ ----------------------------------------- -----------------
33-74674 OM Group, Inc. Long-Term Incentive
Compensation Plan - Form S-8 Registration
Statement - 1,015,625 Shares January 27, 1994
333-07529 OMG Americas, Inc. Employees' Profit
Sharing Plan -- Form S-8 Registration
Statement -- 250,000 Shares July 3, 1996
333-07531 OM Group, Inc. Non-Employees Directors'
Equity Plan -- Form S-8 Registration
Statement -- 250,000 Shares July 3, 1996
Pursuant to Rule 436(c) of the Securities Act of 1933 our reports are not a
part of the registration statements prepared or certified by accountants
within the meaning of Section 7 or 11 of the Securities Act of 1933.
/s/ Ernst & Young LLP
Ernst & Young LLP
August 1, 1997
<TABLE> <S> <C>
<ARTICLE>5
<LEGEND>
This schedule contains summary financial information extracted from the OM
Group, Inc. Condensed Consolidated Balance Sheets at June 30, 1997 (Unaudited)
and the OM Group, Inc. Condensed Consolidated Statements of Income for the
three and six months ended June 30, 1997 (Unaudited) and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER>1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> Dec-31-1997 Dec-31-1997
<PERIOD-END> Jun-30-1997 Jun-30-1997
<CASH> 8,917 8,917
<SECURITIES> 0 0
<RECEIVABLES> 75,156 75,156
<ALLOWANCES> 0 0
<INVENTORY> 254,564 254,564
<CURRENT-ASSETS> 346,282 346,282
<PP&E> 206,990 206,990
<DEPRECIATION> 65,297 65,297
<TOTAL-ASSETS> 614,770 614,770
<CURRENT-LIABILITIES> 115,537 115,537
<BONDS> 0 0
0 0
0 0
<COMMON> 222 222
<OTHER-SE> 285,813 285,813
<TOTAL-LIABILITY-AND-EQUITY> 614,770 614,770
<SALES> 124,334 234,389
<TOTAL-REVENUES> 124,334 234,389
<CGS> 94,851 178,328
<TOTAL-COSTS> 94,851 178,328
<OTHER-EXPENSES> 11,614 22,496
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 3,488 7,154
<INCOME-PRETAX> 14,487 26,823
<INCOME-TAX> 4,908 9,028
<INCOME-CONTINUING> 9,579 17,795
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 9,579 17,795
<EPS-PRIMARY> .44 .87
<EPS-DILUTED> .44 .87
