03 November 2010 12:56 [Source: ICIS news]
LONDON (ICIS)--Momentive Specialty Chemical’s third-quarter net income nearly doubled year on year to $116m (€82m) as a result of higher revenues and lower expenses, the ?xml:namespace>
Revenues for the three months ended 30 September grew 27.2% year on year to $1.37bn as sales continued to increase primarily due to volume gains, pricing actions and the contractual pass through of higher raw material costs, added Momentive, which was, until recently, known as Hexion Specialty Chemicals.
Operating income more than doubled to $189m for the third quarter compared with $77m in the same period of last year, while Segment EBITDA (earnings before interest, taxes, depreciation and amortisation) rose 57.8% year on year to $202m.
“Our record third-quarter 2010 Segment EBITDA reflected continued growth in our specialty products and aggressive cost control initiatives,” said Craig Morrison, Momentive’s chairman, president and CEO.
“In the third quarter of 2010, our significant year-over-year improvement in Segment EBITDA was driven by strength in our specialty epoxy, specialty phenolics, oilfield proppants, and certain international forest products businesses,” he added.
For the first nine months of 2010, Momentive’s net income grew 34.2% year on year to $161m while sales increased 30.9% to $3.85bn as volumes increased substantially across all of the group’s product lines.
“Looking ahead, we expect normal seasonality to impact our fourth-quarter 2010 results based on the trends we’ve historically experienced,” Morrison said.
In October, Hexion and Momentive Performance Materials – both controlled by private equity firm Apollo Global Management – completed a deal to combine their businesses, and Hexion was renamed Momentive Specialty Chemicals.
($1 = €0.71)
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