Hexion swings to Q1 net loss of $7m as sales rise 28% to $1.17bn

12 May 2010 13:51  [Source: ICIS news]

TORONTO (ICIS news)--Hexion Specialty Chemicals reported a 2010 first-quarter net loss of $7m (€5.5m), compared with a profit of $116m in the 2009 first quarter, when it had a $168m one-off gain from the early extinguishment of debt, the company said on Wednesday.

However, Hexion’s sales for the three months ended 31 March rose 28% year on year to $1.17bn, mainly due to higher volumes and the pass-through of increased raw material costs, the US-based producer said.

First-quarter volumes rose 25% year on year and 6% sequentially from the 2009 fourth quarter, Hexion said.

Gross profit was $148m, up 64% from $90m in the 2009 first quarter, it said.

Operating income was $67m, up from $12m in the 2009 first quarter, driven by the increased sales as well as lower costs and expenses, the company said.

“The first quarter 2010 demand trends were generally positive across the board compared to the first quarter of 2009,” said CEO Craig Morrison.

In its outlook, Hexion was optimistic that the gradual recovery in volumes would continue in 2010, he said.

“However, we believe the extent of the economic recovery is likely to vary significantly by industry sector and geographical region,” he said.

($1 = €0.79)

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By: Stefan Baumgarten
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