US Momentive's Q3 net income jumps to $364m on tax benefit

13 November 2012 13:13  [Source: ICIS news]

HOUSTON (ICIS)--Momentive Specialty Chemicals’ third-quarter net income rose to $364m (€288m), from $39m in the same period a year ago, because of a $373m tax benefit in the US, the US-based producer said on Tuesday.

However, revenues and operating income fell on lower volumes and an unfavourable product mix shift, Momentive said.

Momentive’s operating income for the three months ended 30 September fell around 50% year on year to $51m, on revenues of $1.2bn, down 7.7%.

Third-quarter segment earnings before interest, tax, depreciation and amortisation (EBITDA) fell 29% year on year to $115m.

“Our overall results reflected the economic volatility we experienced in the third quarter of 2012,” CEO Craig Morrison said.

“Our Forest Products business continues to reflect the improving North American housing climate, continued year-over-year growth in our formaldehyde business and strong demand in Latin America,” Morrison said.

“However, declines in our base epoxy resins and oilfield businesses negatively impacted our Epoxy, Phenolic and Coatings Division,” he added.

Momentive’s third-quarter tax benefit was the result of “the release of a significant portion of the company's valuation allowance in the US,” it said.

($1 = €0.79)

By: Stefan Baumgarten
+1 713 525 2653

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