13 August 2013 18:30 [Source: ICIS news]
HOUSTON (ICIS)--A possible consolidation in the epoxy resins industry would affect US-based Momentive Specialty Chemicals and others, but it is too early to say what the impacts could be, the company's CEO said on Tuesday.
Dow Chemical said last month that it may put its epoxy resins business in a joint venture or even sell that business amid overcapacity in the global epoxy market.
“Obviously, anytime a competitor may or may not sell [their epoxy business], there are implications that could happen, depending on who the buyer is,” Craig Morrison said during Momentive’s second-quarter earnings call. He was responding to an analyst who asked about impacts from Dow’s possible move.
“I think there are opportunities for different buyers to potentially consolidate the industry, and for the implications of that, we would have to wait and see,” Morrison said.
Those moves were up to Momentive’s competitors, he said. Momentive, for its part, had “nothing to announce” at this time, he added.
Earlier on Tuesday, Momentive reported that its epoxy, phenolic and coating resins segment saw a 28% year-on-year decline in second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) to $73m (€55m), mainly because of “pricing headwinds”, margin compression and costs related to plant maintenance. The segment’s second-quarter sales remained flat year on year at $800m.
($1 = €0.75)
Additional reporting by Al Greenwood
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