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Hexion’s sales revenue boosted by transferring costs

06.06.2018 − 

The growth registered in sales generated by the US-American Hexion in the first quarter was governed mostly the transfer of the higher costs for raw materials. After the easing that had occurred during the course of 2017, the costs for the main preliminary products have gone up again in recent weeks, says Hexion. According to the quarterly report published on 14 May, methanol prices in the first quarter were 10 % higher than a year earlier and urea prices were up by 3 %. In contrast, Hexion quotes a reduction of 3 % in the price for phenol.

Combined with the changes in the product mix, the price increases achieved by passing on the higher costs for raw materials had the effect of boosting revenue generated by Hexion’s “Forest Products Resins” sales in the first quarter by +7 %. The effect of exchange rates is given as +2 %. The slightly lower sales volume than last year and changes in the circle of consolidated companies each resulted in a 1 % reduction in sales revenue. The reduction in sales volume was solely attributable to weather-related restrictions in North America; in South America and Europe, however, more was delivered than a year earlier. The division’s sales revenue thus rose by 7 % to 406m US$. The segment’s EBITDA rose even more sharply by 10 % to 67m US$ to the extent that the margin derived from it improved to 16.5 %.

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