25 February 2011 14:10 [Source: ICIS news]
TORONTO (ICIS)--Momentive Specialty Chemicals reported a 2010 fourth-quarter net income of $53m (€38m), compared with a loss of $6m in the same period in 2009, the US-based producer said on Friday.
The improvement was due to a 20% increase in sales – to $1.2bn from $1.0bn in the year-earlier quarter - and a better cost structure, Momentive said.
Momentive is the former Hexion Specialty Chemicals.
Results also included $80m in insurance recoveries and settlements related to litigation over the failed attempt to merge Hexion and Huntsman in 2007, Momentive said.
Operating income for the three months ended 31 December rose to $159m, from $36m in the 2009 fourth quarter. Gross profit rose 29% to $173m.
Total earnings before interest, taxes, depreciation and amortisation (EBITDA) from Momentive’s three business segments – epoxy and phenolic resins, and formaldehyde and forest product resins, and coatings – was $142m, up 39% or $40m from $102m in the 2009 fourth quarter.
“While we experienced the normal seasonality that we anticipated in the fourth quarter of 2010, we also continued to benefit from tight market conditions that positively impacted our base epoxy resins and acrylic monomers versus the prior year period,” CEO Craig Morrison said.
“Our overall fourth quarter 2010 results, however, were negatively impacted by inflation for key raw materials, which negatively impacted our segment EBITDA margins on a sequential basis compared to the third quarter of 2010,” Morrison said.
For the full 12 months of 2010, Momentive recorded net income of $214m, up from net income of $114m in 2009, as sales rose 28.5% to $4.82bn.
($1 = €0.72)
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