Hexion Inc. Reports 59% Increase in 2021 Second-Quarter Net Sales
COLUMBUS, OH - Hexion Inc. recently announced results for the second quarter ended June 30, 2021. The company reported net sales from continuing operations of $852 million, an increase of 59% compared with $535 million in the prior-year period. Net income for the second quarter was $38 million, compared to a net loss of $42 million in the prior-year period. Total Segment EBITDA from continuing operations for the quarter ended June 30, 2021 was $160 million, an increase of $104 million compared with 2020, or 186%, reflecting strong gains across both the Adhesives and Coatings and Composites segments.
"Our strong second quarter 2021 results position us well to aggressively pursue our strategic actions that are focused on creating shareholder value, which includes a proposed public offering of Hexion Holdings Corporation's common stock later this year, in addition to the consideration of alternatives identified through the Company's ongoing strategic review," said Craig Rogerson, Chairman, President and Chief Executive Officer. "We were pleased to drive strong second quarter 2021 results as our Segment EBITDA increased by $104 million, or 186 percent, in the second quarter of 2021 versus prior year. While the impact of COVID-19 in the prior year period clearly impacted the year-over-year comparisons, Segment EBITDA also increased sequentially by $46 million, or 40 percent when compared to the first quarter of 2021 driven by sharply increased volumes, pricing actions to offset raw material inflation and strong secular demand across our diversified end markets. We continue to benefit from a significant percentage of customer contracts that allow for the contractual pass through of raw material costs. Within our Adhesives segment, we continued to capitalize on the strength in residential home building, while within our Coatings and Composites segment we saw the positive impact of steady pricing actions in our specialty and base epoxy businesses. Overall, this resulted in Segment EBITDA margins approaching 19 percent compared to approximately 11 percent in the prior year."