07 May 2012 13:39 [Source: ICIS news]
LONDON (ICIS)--Momentive Specialty Chemicals swung to a net loss of $16m in the first quarter of 2012 from a net income of $63m in same period last year, as sales fell on lower volumes, the US-based chemical firm said on Monday.
Momentive’s revenues for the three months ending on 31 March fell 4% year on year to $1.24bn (€942m). The company said lower volumes were slightly offset by the passing through of higher raw material costs.
The group’s operating income fell to $44m in the first quarter of 2012 compared with $119m in the same period last year. Momentive said its operating income was partially impacted by higher asset impairments and business realignment costs during the quarter.
“While we experienced lower volumes in the first quarter of 2012 compared to the prior year period, we were encouraged by improvement in our base epoxy resins and North American forest products resins businesses demonstrating the diversity of our product portfolio and the benefit of previous cost reductions,” said Craig Morrison, chairman, president and CEO.
“In the first quarter of 2012, we also achieved $7m in savings under the shared services agreement with Momentive Performance Materials Inc. (MPM),” he added.
Looking ahead, Morrison said the company anticipates a gradually improving demand environment in 2012 and will continue to focus on driving growth while reducing costs.
($1 = €0.76)
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