14 August 2007 14:21 [Source: ICIS news]
LONDON (ICIS news)--Hexion Specialty Chemicals reported a 51% increase in second-quarter operating income to $89m (€66m) driven by an improved operating performance and lower transaction and integration costs, the thermoset resins maker said on Tuesday.
The Columbus, Ohio-based company’s revenues rose 10% to $1.46bn with strong international demand offsetting lower volumes in the North American housing and automotive sectors.
“Operating margins improved 163 basis points in the second quarter compared with the same period last year reflecting an ongoing focus on cost control and productivity initiatives,” said CEO Craig Morrison.
“While we experienced ongoing volatility and historically high prices for several key raw materials, such as phenol and urea, our ability to leverage our contractual pass through capabilities helps us offset the rapid rise in raw materials costs,” he added.
Hexion said many positive demand trends set in the first quarter of 2007 continued in the second quarter for differentiated products, including epoxy resins and intermediates, phenolic specialty resins, oil field products, international forest products resins and formaldehyde.
The epoxy resins segment reported a 22% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) in the first quarter to $84m.
EBITDA for formaldehyde and forest product resins rose 16% to $44m, while the coatings and inks segment dropped $1m to $24m and performance products gained $2m to reach $17m.
Last month, Hexion agreed to buy out rival
“Our combined company will be one of the largest chemical companies resulting in a significantly enhanced global presence,” said Morrison.
($1 = €0.73)
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