COLUMBUS, OH - Hexion Inc. announced results for the second quarter ended June 30, 2016.
“Our second quarter 2016 results reflected continued volume growth in our specialty epoxy business driven by strong wind-energy demand, particularly in Europe and the Asia-Pacific region, as well as improved earnings in our Versatic™ Acids and Derivatives and North American forest product businesses,” said Craig O. Morrison, Chairman, President and CEO. “Our diversified portfolio enabled Hexion to largely offset economic volatility in Latin America and softer oilfield proppant results. We continue to aggressively pursue our global cost-reduction initiatives including the rationalization of our Norco, Louisiana, site in the second quarter as planned, which we anticipate will deliver approximately $20 million in annualized savings. We also successfully took actions in the quarter to strategically streamline our portfolio through the sale of our Performance Adhesives, Powder Coatings, Additives & Acrylic Coatings and Monomers business and our interest in HA-International LLC, a joint venture serving the North American foundry industry.”
Net sales for the quarter ended June 30, 2016, were $952 million, a decrease of 12% compared with $1.09 billion in the prior year period. The decline in net sales was primarily driven by the strengthening of the U.S. dollar against most other currencies, slightly lower volumes in both segments and the pass through of savings from lower priced oil-driven feedstocks.
The company remains on track to achieve its previously announced productivity and cost reduction programs. As of June 30, 2016, Hexion had approximately $36 million of in-process cost savings, the majority of which the company expects to be achieved over the next 12 to 24 months.