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More growth in Hexion’s Forest Products Resins sales

08.09.2017 − 

In the second quarter, US-American Hexion raised the sales revenue of its “Forest Products Resins” division above the levels for the same period of last year and the preceding quarter. At $395m, the figures were exceeded by 17% and 5% respectively. According to Hexion, the main contributing factors here were a considerably higher volume of sales in North America than last year and positive development in prices. As deliveries in Europe and Latin America fell in the second quarter, total sales revenue only rose by 3%. Price increases and a better product mix contributed to the increase in sale revenue at 15%. This more than compensated for the unfavourable development in exchange rates from Hexion’s point of view (-1%).

The division’s EBITDA rose by 8% to $61m, resulting in an EBITDA margin of 17.2%. Besides the positive development in business in North America, more cost-efficient production in the new US formaldehyde works also played a part in the improved performance. These works contributed $6m to the result in the second quarter. Hexion is expecting them to contribute $30-35m annually to its income in the years ahead.

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