US Momentive Q4 loss grows 10% on lower revenue

01 April 2013 17:15  [Source: ICIS news]

HOUSTON (ICIS)--US-based resins producer Momentive Specialty Chemicals reported on Monday a Q4 net loss of $52m (€41m), down nearly 11% from a net loss of $47m from the same time in 2011, due to a drop in sales.

Q4 net sales were $1.08bn, down about 6% from $1.15bn reported for the same time in 2011, Momentive said. Cost of sales were $971m, down nearly 6% from $1.03bn reported in Q4 2011. As such, gross profit fell nearly 10% year on year.

By segment, epoxy, phenolic and coating resins reported $46m in Q4 earnings before interest, tax, depreciation and amortisation (EBITDA), down from $73m reported from the same time in 2011.

Forest-product resins reported $50m in Q4 EBITDA, up from $39m from the same time in 2011.

Earnings for the forest-products segment increased in all regions, offsetting challenges in the company's oilfield and base epoxy resins businesses, according to a statement by CEO Craig Morrison.

Looking forward, Momentive expects a volatile year for the world economy, Morrison said. However, the company's wide product portfolio and customer base should help Momentive contend with any extreme swings in the economy, he said.

The company should benefit from continued strength in the North American housing market, he said, and oilfield proppants and base epoxy resins should continue to recover.

"Our focus remains on driving costs out of the business wherever possible while strategically investing in our specialty portfolio," Morrison said.

For all of 2012, net sales were $4.76bn, down from $5.21bn in 2011. Net income was $324m, up from $118m from 2011. The company's 2012 earnings benefitted from a $365m income-tax benefit.

($1 = €0.78)

By: Al Greenwood
+1 713 525 2645

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