Momentive Specialty Chemicals sees no bounce-back through 2012
07 August 2012 15:45 [Source: ICIS news]
HOUSTON (ICIS)--Momentive Specialty Chemicals does not expect to see business recover before the end of the year, the CEO of the US-based producer said on Tuesday.
“We are not predicating our actions on a bounce-back in the second-half of 2012,” Craig Morrison told analysts during Momentive’s second-quarter earnings call.
Over the next six months, business will likely “move sideways, but we don’t see it, conversely, falling off a cliff,” Morrison said.
“I really think that until the ?xml:namespace>US election is over and a number of things are resolved in Europe, you are going to have trouble making any real progress,” he added.
Earlier on Tuesday, Momentive reported a 56% year-on-year decline in its second-quarter net income because of lower volumes and an unfavourable product mix due to declines in certain higher-margin product.
Morrison noted in particular a decline in Momentive’s oilfield resins business in the second quarter because of reduced US natural gas drilling amid lower gas prices.
“We believe that this [decline in the US natural gas rig count] is a short-term trend as the promise of shale gas and horizontal drilling methods used to extract that gas has tremendous upside for our oilfield proppants business long-term,” he said.By: Stefan Baumgarten+1 713 525 2653
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