13 August 2010 13:16 [Source: ICIS news]
TORONTO (ICIS)--Hexion Specialty Chemicals reported second-quarter net income of $52m (€40.6m), compared with a net loss of $56m in the same period last year, due to higher revenues and lower costs, the US-based producer said on Friday.
Revenues for the three months ended 30 June rose 37% year on year to $1.3bn, Hexion said, up from $947m in the 2009 second quarter, primarily due to volume gains, pricing actions and the contractual pass-through of higher raw material costs.
Second-quarter operating income was $138m, compared with an operating loss of $9m in the 2009 second quarter, due to higher revenues as well as lower expenses and an improved cost structure, Hexion said.
Segment earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $164m, up from $90m in the same quarter last year.
“Our strong results reflect improved overall demand as well as leverage from our ongoing productivity initiatives,” said Hexion CEO Craig Morrison.
“In the second quarter of 2010, we experienced volume increases of approximately 30% versus the prior year period and 8% sequentially [from the 2010 first quarter],” he added.
Going forward, Morrison said the company is optimistic that the recovery in volumes would continue throughout the year “despite the ongoing volatility in various leading economic indicators”.
($1 = €0.78)
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