12 August 2011 13:53 [Source: ICIS news]
HOUSTON (ICIS)--Momentive Specialty Chemicals’ second-quarter net income rose 21% year on year to $63m (€44m) as sales rose 24%, the US-based chemicals producer said on Friday.
Momentive’s sales for the three months ended 30 June were $1.44bn, compared with $1.16bn in the same period last year. Gross profit for the quarter rose 15% year on year to $215m.
Earnings before interest, tax, depreciation and amortisation (EBITDA) from Momentive’s business segments - epoxy, phenolic and coating resins, forest products resins – rose 22% year on year to $189m.
“In the second quarter of 2011, we continued to see strong segment EBITDA growth due to our specialty portfolio, improved product mix, strong cost controls and our ongoing productivity initiatives,” said CEO Craig Morrison.
“In particular, our operating leverage and strong performances in our oilfield resins, base epoxy resins, phenolic specialty resins, North American formaldehyde and our Latin America forest products businesses drove a 22% gain in second-quarter 2011 segment EBITDA,” Morrison added.
“We continued to make good progress on the pricing front during the second quarter of 2011 as we work to offset raw material inflation. We are also continuing to pursue a number of pricing actions,” he said.
Also helping Momentive’s results were savings from its shared services agreement with sister company Momentive Performance Materials from October last year, Morrison added.
Momentive’s short-term outlook for the remainder of 2011 “is difficult to predict” because of the recent worldwide economic developments, Morrison said with reference to the financial market turmoil in the ?xml:namespace>
However, “we believe our business is well-positioned over the long-term,” he added.
Momentive Specialty Chemicals was renamed last year from Hexion Specialty Chemicals. It is controlled by private equity firm Apollo Global Management.($1 = €0.70)
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