02 March 2012 14:12 [Source: ICIS news]
LONDON (ICIS)--Momentive Specialty Chemicals recorded a net loss of $47m (€63m) in the fourth quarter compared with a net income of $53m in the same period in 2010, as demand fell on weak economic conditions, the US-based thermoset resin producer said on Friday.
The company’s sales for the three months ended 31 December fell to $1.15bn, compared with $1.17bn in 2010. Gross profit for the quarter fell 27% year on year to $125m.
Earnings before interest, tax, depreciation and amortisation (EBITDA) from its business segments of epoxy, phenolic and coating resins, and forest products resins dropped 26% year on year to $106m.
“Our fourth quarter 2011 results reflected global macroeconomic volatility and inventory destocking,” said CEO Craig O. Morrison.
“While we experienced lower volumes in the fourth quarter of 2011 compared to the prior year period, the decline was not as broad-based as the last major downturn we saw in late 2008 as we managed to post strong results for our phenolic specialty resins, formaldehyde and oilfield proppants businesses in the most recently-completed quarter,” he added.
For the full 12 months of 2011, Momentive recorded net income of $118m, down from $214m in 2010, as sales rose 13% to $5.2bn. EBITDA totalled $635m in 2011 compared with $607m in 2010.
Looking ahead, Morrison expects further volatile market conditions during the first half of the year.
“[We] are aligning our business for an eventual recovery that is expected to occur in 2012,” he added.
Momentive Specialty Chemicals makes thermoset resins used by a wide range of industries including construction, transportation, electronics, automotive and others.
Formerly known as Hexion Specialty Chemicals, it is an operating company of Momentive and a sister company to Momentive Performance Materials.
($1 = €0.75)
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