Momentive Specialty Chemicals Inc. (“Momentive Specialty Chemicals” or the “Company”) today announced results for the third quarter ended September 30, 2012. Results for the third quarter of 2012 include:
“We were also pleased to generate $27 million in cash flow from operations in the first nine months of 2012, a $55 million improvement compared to the prior year. Going forward, we continue to focus aggressively on working capital improvements and expect further improvements for the remainder of 2012.”
Revenues of $1.2 billion versus $1.3 billion in the third quarter of 2011.
Operating income of $51 million compared to operating income of $101 million for the prior year period. Third quarter 2012 operating income reflected lower volumes and unfavorable product mix shift, partially offset by the positive impact of savings from the shared services agreement with Momentive Performance Materials Inc. (MPM).
Net income of $364 million versus net income of $39 million in the prior year period. Third quarter 2012 results reflect the same factors impacting operating income and a $373 million tax benefit as a result of the release of a significant portion of the Company's valuation allowance in the United States.
Segment EBITDA totaled $115 million compared to $162 million during the prior year period.
“Our overall results reflected the economic volatility we experienced in the third quarter of 2012,” said Craig O. Morrison, Chairman, President and CEO. “Our Forest Products business continues to reflect the improving North American housing climate, continued year-over-year growth in our formaldehyde business and strong demand in Latin America. However, declines in our base epoxy resins and oilfield businesses negatively impacted our Epoxy, Phenolic and Coatings Division. Our specialty product portfolio and end market diversity continues to support our long-term growth plans.”
“We continue to make steady progress achieving savings from the shared services agreement with Momentive Performance Materials Inc. During the first nine months of 2012, we realized approximately $19 million in cost savings as a result of the Shared Services Agreement, bringing our total cumulative savings to $49 million since the program was initiated in late 2010. We have also identified $30 million of additional MSC savings from both the shared services agreement and cost reduction initiatives that we expect to achieve over the next 12 to 15 months as we further optimize our manufacturing footprint and enhance our cost structure.”
Source: Business Wire