Hexion Inc. announced results for the first quarter ended March 31, 2018.
First Quarter 2018 Highlights
- Net sales of $946 million, a 9% increase versus prior year
- Net loss of $13 million
- Segment EBITDA of $118 million, a 24% increase versus prior year
- Completed the sale of the Additives Technology Group (ATG) business in January 2018 generating $49 million in proceeds or approximately twelve times Segment EBITDA over the last twelve months
First Quarter 2018 Results
Net Sales. Net sales for the quarter ended March 31, 2018 were $946 million, an increase of 9% compared with $870 million in the prior year period. The increase in reported net sales was driven by pricing actions primarily in the base epoxy resins business and the pass-through of higher raw material costs in the global forest products resins and phenolic specialty resins businesses.
Segment EBITDA. Segment EBITDA for the quarter ended March 31, 2018 was $118 million, an increase of 24% compared with the prior year period. Segment EBITDA in the first quarter of 2018 increased by $24 million, or 26%, when adjusted for divestitures. First quarter 2018 results reflected the ongoing cost reductions and improved margins in the Company’s base epoxy resins, phenolic specialty resins, and global forest product resins and formaldehyde businesses.