Hexion hit by raw material costs in Q1

HEXION SPECIALTY Chemicals reports a 2008 first quarter (Q1) net loss of US$6 million compared to a net income of $4 million in the same period in 2007 as raw material costs rise.

The loss came despite a 14% increase in revenues to $1.64 billion. Operating income was down 21% to $82 million due to a negative impact of $17 million in increased raw materials costs and $6 million from a versatic acids force majeure.

Hexion has also announced that together with Huntsman Corp, they have agreed to allow additional time for the Federal Trade Commission to review the proposed merger of the two companies. In April, Hexion exercised its option to extend the termination date under the merger agreement until 4 July 2008.

According to the agreement which was set up in July 2007, Hexion will acquire Huntsman for about $10.6 billion.

Hexion; www.hexion.com

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