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 $7.5bn (2009)
Sales ($ m)
Operating Profit ($ m)
Net Profit ($ m)
Total Assets ($ m)
Number of Employees
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Momentive is a producer of binder, adhesive, coating and ink resins for industrial applications.
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