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Momentive (formally known as Hexion) | Strategy and Financial Highlights Information from ICIS

 

Edited from: “outlook” and 10-K annual report

 

The company will focus on realising anticipated synergies and cost savings on a timely basis while maintaining the efficiency of its operations. Any substantial diversion of management attention or difficulties in operating the combined business could affect its sales and ability to achieve operational, financial and strategic objectives.

 

It will focus on:

 

developing new products that will make it more competitive;

remaining aware of competition from other chemical companies;

competition from producers of materials that are substitutes for formaldehyde-based resins that could lead to declines in its net sales;

concentrate on acquisitions and joint ventures that it has pursued and may present unforeseen integration obstacles and costs, increase its leverage and negatively impact its performance; and

further concentrate on its growth strategy.

 

The R&D strategy includes:

 

developing new or improved applications based on its existing product line and identified customer needs;

developing new resin products and applications for customers in order to improve its competitive advantage and profitability;

providing premier technical service for customers of specialty products;

providing technical support for manufacturing locations and assisting in plant optimisation;

ensuring that its products are manufactured in accordance with its global environmental, health and safety policies and objectives;

developing lower cost manufacturing processes globally; and

expanding production capacity.

 

Outlook
 
The company says that there can be no assurances that:

 

any global recovery will continue;

it will be able to realise margins that it has historically achieved as feedstock costs decline; or

its feedstock costs will not rise faster than its product prices and, therefore, reduce its margins.

 

All of these factors will enable the company to generate increased free cash flow, which it anticipates will be available to reduce indebtedness or for other strategic purposes.

 

Momentive has joint sales of around $7.5bn (2009)

 

Financial highlights: Hexion, year ended 31 December

 

2009

 2008

 2007

 2006

 2005

Sales ($ m)

4,030

6,093

5,810

5,205

4,442

Operating Profit ($ m)

94

-893

302

286

--

Net Profit ($ m)

92

-1,190

-65

-95

-87

Total Assets ($ m)

2,973

3,180

4,006

3,508

3,209

Number of Employees

6,200

6,800

6,400

6,900

7,000 

 

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Hexion Company Structure

Momentive is a producer of binder, adhesive, coating and ink resins for industrial applications.
More about Hexion Structure

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