Hexion reports its net sales for the year ended 31 December 2015 were US$4.1 billion, a decrease of 19% compared with US$5.1 billion in 2014. Net sales for Q4 ended 31 December 2015 were US$909 million, a decrease of 22% compared with US$1.16 billion in the prior year period.
The decline in net sales was primarily driven by the strengthening of the US.dollar against most other currencies and lower selling prices from the decline in oil-driven feedstocks, which more than offset gains in specialty epoxy resins, the company said. Total segment EBITDA decreased 20% to US$73 million, compared to 2014, reflecting the strong US dollar and the absence of US$13 million in favorable one-time items in the fourth quarter of 2014.
‘Excluding the impact of currency, we were pleased to deliver an 11% year-over-year increase in Segment EBITDA in 2015 compared to 2014 due to the strength of our diversified portfolio and disciplined cost controls,’ said Craig O Morrison, chairman, president and CEO. ‘In 2015, we also drove strong levels of cash flow from operations and successfully completed construction of two new formaldehyde sites, with a third new formaldehyde site coming online as expected in the first quarter of 2016.’
‘Our fourth quarter 2015 results reflected improvement in our specialty epoxy and versatic acids and derivatives businesses as well as productivity gains, offset by the negative impact of foreign currency, softer demand in Latin America and continued headwinds impacting our oil and gas related products,’ he added. ‘The structural cost savings program we began implementing earlier this year remains on track and we have identified approximately US$35 million in additional productivity savings to strengthen our position for profitable growth in response to the recent economic volatility.’
This story uses material from Hexion, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.