Posted by: meikah | 20 May 2007 | 7:36 pm
Hexion Specialty Chemicals Inc. is the world leader in thermoset resins. For years, it has been providing the right technology and material that help customers bind, bond, and coat thousands of products.
Last week, Hexion reported strong first quarter results that ended March 31, 2007. The following are the highlights:
- Revenues of $1.44 billion in 2007 compared to $1.23 billion during the prior year period, an increase of 17 percent.
- Operating income of $104 million for the first quarter 2007 compared with first quarter 2006 operating income of $110 million. Last year’s operating income, however, included a gain of $37 million from the sale of non-core assets, net of which earnings were up 42 percent.
- Net income of $4 million for the 2007 quarter versus net income of $35 million in the prior year period. The prior year period included the gain from the sale of non-core assets, which increased net income in the first quarter 2006 by $31 million.
- Quarterly Segment EBITDA (earnings before interest, taxes, depreciation and amortization) increased 29 percent to $170 million in first quarter 2007 compared to $132 million during the prior year period. (Note: Segment EBITDA is a non-GAAP measure and is defined and reconciled to Net Income later in this release).
- Adjusted EBITDA of $679 million for the Last Twelve Month (LTM) period ended March 31, 2007. (Note: Adjusted EBITDA is a non-GAAP measure and is defined and reconciled to Net Income later in this release).
Being a Six Sigma organization, this should not come as a surprise. According to Craig O. Morrison, Hexion’s Chairman, President, and CEO, “We maintained our emphasis on pricing pass through to recover the rapid rise in raw materials that occurred throughout 2006. With the leveling off of raw materials in the first quarter 2007, the impact of our synergies, Six Sigma projects and other initiatives were reflected in our bottom line.”
BusinessWire, “Hexion Specialty Chemicals Reports Strong First Quarter 2007 Results” with a link from iSixSigma