COLUMBUS, OH – Hexion Specialty Chemicals Inc. has reported its results for the first quarter ended March 31, 2010.
The company reported revenues of $1.17 billion in the first quarter of 2010 compared to $914 million during the prior-year period as sales increased primarily due to volume gains, as well as the contractual pass through of higher raw material costs, pricing actions and the positive impact of foreign currency translation. The company had an operating income of $67 million for the first quarter of 2010 compared to operating income of $12 million for the prior-year period. First-quarter 2010 operating income improved compared to the prior year primarily due to higher revenues, an improved cost structure and lower expenses associated with the company’s productivity program.
The company reported net loss attributable to Hexion Specialty Chemicals, Inc. of $7 million for the 2010 quarter versus net income of $116 million in the prior year period. First quarter 2010 results reflected the same factors impacting operating income. In the first quarter of 2009, net income included a $168 million gain from the early extinguishment of debt as Hexion previously purchased portions of its outstanding debt for amounts less than the face value of debt securities.
Segment EBITDA (earnings before interest, taxes, depreciation and amortization) totaled $121 million in the first quarter of 2010 compared to $61 million during the prior year period.
“We were encouraged by our first quarter 2010 volume gains of 25 percent versus the prior year period,” said Craig O. Morrison, Chairman, President and CEO. “The first quarter 2010 demand trends were generally positive across the board compared to the first quarter of 2009. Volume also grew solidly compared to the fourth quarter of 2009 and rose sequentially approximately six percent. Our strong year-over-year EBITDA improvement in the first quarter of 2010 reflected higher volumes and the benefit of past productivity actions. In addition, we have announced a number of recent price actions in an effort to offset the raw material inflationary trends we’ve experienced this year.
“Finally, our first quarter 2010 earnings were particularly strong in our specialty epoxy resins, Versatic™ Acids and Derivatives, and oilfield products, while overall results for our North American forest products business also posted the sharpest EBITDA gain in several quarters.”