Momentive Reports Strong Q1

Momentive Specialty Chemicals  (formerly Hexion Specialty Chemicals) has reported revenues of $1.4 billion Q1 2011, compared to $1.1 billion during the prior year period as sales continued to increase primarily due to volume gains and pricing actions including the contractual pass through of higher raw material costs. The company had an operating income of $120 million, compared to operating income of $63 million for the prior year period.

The Q1 2011 operating income rose significantly compared to the prior year due to higher volumes, improving margins and ongoing cost productivity programs. The company has also posted a net income of $63 million for the first quarter of 2011 versus net loss of $7 million in the prior year period. The Q1 2011 results reflected the same factors impacting operating income.

Segment EBITDA (earnings before interest, taxes, depreciation and amortization) totaled $180 million in the first quarter of 2011 compared to $116 million during the prior year period. In addition, the Momentive reported pro forma adjusted EBITDA for the last 12 months of $747 million, including savings of approximately $48 million that the company expects to achieve in connection with the shared services agreement that it entered into with MPM.