Hexion Inc. declared results for the second quarter ended June 30, 2018.“Strong results in our base epoxy resins and forest products businesses drove year over year Segment EBITDA gains of 28% and sales growth of 9% in the second quarter of 2018,” said Craig A. Rogerson, Chairman, President and CEO. “Our results also reflected improved performance in our specialty epoxy resins business, primarily due to ongoing growth in our waterborne coatings business, as well as the positive impact of our recent structural cost reduction initiatives.”Mr. Rogerson added: “We continue to expect strong year-over-year Segment EBITDA growth in the second half of 2018 reflecting solid demand in our global forest products business and continued strength in market fundamentals in base epoxy resins, which are expected to persist for the foreseeable future. We also anticipate that continued environmental regulation and long-term secular growth in renewable energy will support gains in our waterborne coatings and wind energy business over the next few years. Finally, we generated $41 million of operating cash flow in the second quarter and we remain focused on generating improved cash flow in 2018.”Second Quarter 2018 ResultsNet Sales. Net sales for the quarter ended June 30, 2018 were $995 million, an increase of 9% compared with $912 million in the prior year period. The increase in reported net sales was driven by the pass-through of higher raw material costs and pricing actions primarily in the base epoxy resins business.Segment EBITDA. Segment EBITDA for the quarter ended June 30, 2018 was $128 million, an increase of 28% compared with the prior year period. Segment EBITDA in the second quarter of 2018 increased by $29 million, or 29%, when adjusted for divestitures. Second quarter 2018 results reflected cost reduction actions and improved margins primarily in the Company’s base epoxy resins, phenolic specialty resins, and global formaldehyde businesses.For identifying Growth Opportunities for Epoxy Curing Agents In Composites Market, please visit http://www.lucintel.com/epoxy-curing-in-composites-industry-2020.aspx
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