11 March 2008 12:52 [Source: ICIS news]
LONDON (ICIS news)--Hexion’s fourth-quarter operating profits for 2007 dropped 64% to $21m (€14m) year on year as a result of site closures and manufacturing interruptions, the US specialty chemicals company said on Tuesday.
“Fortunately, our manufacturing operations have returned to normal production at this time and our pricing actions partially offset raw material headwinds in the fourth quarter of 2007,” Hexion’s chairman, president and CEO Craig Morrison said.
The company’s net sales for the period ended 31 December increased 13% to $1.5bn, the company said.
Hexion’s coatings and inks sector saw the biggest earnings before interest tax depreciation and amortisation (EBITDA) increase for the quarter, up 55% to $17m, while EBITDA at the performance products business jumped 43% to $20m for the fourth quarter.
However, EBITDA at the epoxy and phenolic resins sector fell 6% to $62m, while for the formaldehyde and forest product resins segment it decreased 9% to $39m.
Meanwhile, Hexions’s full-year operating profits excluding gains from the sale of businesses rose 22% to $302m year on year, while net sales increased 12% to $5.8bn, it said, adding growth was due to a wider global customer base.
Last year Hexion and Huntsman Corporation announced merger plans and this was currently being reviewed by the US Federal Trade Commission.
“We are fully co-operating with regulatory agencies and will continue to work closely with Huntsman and the agencies in order to obtain the regulatory approval required to complete the merger,” Morrison said.
($1 = €0.65)
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