Company News
November 12, 2021
Hexion Results
Hexion Inc. Announces Third Quarter 2021 Results
Third Quarter 2021 Highlights
- Net sales from continuing operations of $945 million, an increase of 49% compared with $634 million in the prior year period.
- Net income of $49 million compared with a net loss of $94 million in the prior year period.
- Segment EBITDA from continuing operations of $188 million compared to $91 million in the prior year period.
- Liquidity of $721 million
- Hexion Holdings Corporation, the indirect parent of Hexion Inc., announced plans to separate into two independent companies as part of its strategic initiatives to drive long term shareholder value
November 12, 2021 07:00 AM Eastern Standard Time
COLUMBUS, Ohio–(BUSINESS WIRE)–Hexion Inc. (“Hexion” or the “Company”) today announced results for the third quarter ended September 30, 2021.
“Our strong third quarter 2021 Segment EBITDA represented our fourth straight quarter of year-over-year increases as we more than doubled our prior year results reflecting our product portfolio aligned with key sustainability market trends, strong market conditions and pricing actions”
“Our strong third quarter 2021 Segment EBITDA represented our fourth straight quarter of year-over-year increases as we more than doubled our prior year results reflecting our product portfolio aligned with key sustainability market trends, strong market conditions and pricing actions,” said Craig Rogerson, Chairman, President and Chief Executive Officer. “We also drove sequential Segment EBITDA increases of $28 million, or 18 percent, in the third quarter of 2021 compared to the second quarter of 2021. Our Adhesives Segment results were supported by strong gains in each global region and positive demand from increasing residential housing construction starts. Our Coatings and Composites segment reflected significant Segment EBITDA gains in base and specialty epoxy resins, as well as solid volume increases in our Versatic™ Acids and Derivatives. Our overall Segment EBITDA margins were nearly 20% percent compared to approximately 14 percent in the prior year. In addition, our net cash provided by operating activities totaled $106 million through the first nine months of the year, which is significantly higher than the comparable 2020 period due to our higher earnings and growing margins. Our net debt to Pro Forma EBITDA leverage ratio was 2.3 times as of the last twelve months ended September 30, 2021 reflecting the improved earnings and cash flow, as well as the 2021 debt reductions.”
Mr. Rogerson added: “Looking ahead to the fourth quarter of 2021, we expect continued strength in our epoxy business and tailwinds from residential construction demand supporting our adhesives products, partially offset by the impact of a planned turnaround in Versatic™ Acids and Derivatives. We believe we are well-positioned for growth in 2022 and going forward.”
Hexion Exploring Value Creation Strategic Alternatives
Hexion’s management team and its Board of Directors, as previously announced on September 29, 2021, continues to evaluate strategic value creation options, including the potential spin of Hexion’s epoxy business and an IPO of Hexion’s Adhesives and Versatic product lines. Hexion Holdings has filed registration statements on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) for a proposed initial public offering on the New York Stock Exchange.
The potential spin transaction and IPO remain subject to SEC review, European works councils review, and market conditions. This press release is not an offer to sell securities.
Third Quarter 2021 Results
Total net sales for the quarter ended September 30, 2021 were $945 million, an increase of 49% compared with $634 million in the prior year period. Pricing positively impacted sales by $297 million due primarily to improved market conditions in our base epoxy resins and specialty epoxy resins businesses and significant raw material price increases contractually passed through to customers across many businesses. Foreign currency translation positively impacted net sales by $16 million due to the strengthening of various foreign currencies against the U.S. dollar in the third quarter of 2021 compared to the third quarter of 2020. Volumes negatively impacted net sales by $2 million, primarily due to volume decreases in our specialty epoxy product lines due to lower demand in China and volume decreases in our formaldehyde products driven by Hurricane Ida’s impacts in the Gulf Coast. These were partially offset by volume increases in our North American and Latin American wood adhesives product lines driven by strong market conditions across many key end-markets and increases in our epoxy and VersaticTM Acid and Derivatives product lines driven by strong market demand and continued recovery from COVID-19’s global economic impact across our various industries and markets compared to the third quarter of 2020.
Net income for the three months ended September 30, 2021 was $49 million compared to a net loss of $94 million in the prior year period. Total Segment EBITDA from continuing operations for the quarter ended September 30, 2021 was $188 million, an increase of $97 million compared with the prior year period, or 107 percent, reflecting strong volume gains across both the Adhesives and Coatings and Composites segments, improved market conditions across many of our businesses and raw material productivity positively impacting our wood adhesives and formaldehyde product lines.
Liquidity and Capital Resources
As of September 30, 2021, total debt was approximately $1.6 billion and consisted primarily of the Company’s approximately $1.2 billion Senior Secured Term Loans due 2026 and $450 million Senior Notes due 2027. At September 30, 2021, the Company had $721 million in liquidity, including $352 million of unrestricted cash and cash equivalents. Hexion has no upcoming maturities on its term loan or notes until 2026.
November 12, 2021
Hexion Results
Hexion Inc. Announces Third Quarter 2021 Results
Third Quarter 2021 Highlights
- Net sales from continuing operations of $945 million, an increase of 49% compared with $634 million in the prior year period.
- Net income of $49 million compared with a net loss of $94 million in the prior year period.
- Segment EBITDA from continuing operations of $188 million compared to $91 million in the prior year period.
- Liquidity of $721 million
- Hexion Holdings Corporation, the indirect parent of Hexion Inc., announced plans to separate into two independent companies as part of its strategic initiatives to drive long term shareholder value
November 12, 2021 07:00 AM Eastern Standard Time
COLUMBUS, Ohio–(BUSINESS WIRE)–Hexion Inc. (“Hexion” or the “Company”) today announced results for the third quarter ended September 30, 2021.
“Our strong third quarter 2021 Segment EBITDA represented our fourth straight quarter of year-over-year increases as we more than doubled our prior year results reflecting our product portfolio aligned with key sustainability market trends, strong market conditions and pricing actions”
“Our strong third quarter 2021 Segment EBITDA represented our fourth straight quarter of year-over-year increases as we more than doubled our prior year results reflecting our product portfolio aligned with key sustainability market trends, strong market conditions and pricing actions,” said Craig Rogerson, Chairman, President and Chief Executive Officer. “We also drove sequential Segment EBITDA increases of $28 million, or 18 percent, in the third quarter of 2021 compared to the second quarter of 2021. Our Adhesives Segment results were supported by strong gains in each global region and positive demand from increasing residential housing construction starts. Our Coatings and Composites segment reflected significant Segment EBITDA gains in base and specialty epoxy resins, as well as solid volume increases in our Versatic™ Acids and Derivatives. Our overall Segment EBITDA margins were nearly 20% percent compared to approximately 14 percent in the prior year. In addition, our net cash provided by operating activities totaled $106 million through the first nine months of the year, which is significantly higher than the comparable 2020 period due to our higher earnings and growing margins. Our net debt to Pro Forma EBITDA leverage ratio was 2.3 times as of the last twelve months ended September 30, 2021 reflecting the improved earnings and cash flow, as well as the 2021 debt reductions.”
Mr. Rogerson added: “Looking ahead to the fourth quarter of 2021, we expect continued strength in our epoxy business and tailwinds from residential construction demand supporting our adhesives products, partially offset by the impact of a planned turnaround in Versatic™ Acids and Derivatives. We believe we are well-positioned for growth in 2022 and going forward.”
Hexion Exploring Value Creation Strategic Alternatives
Hexion’s management team and its Board of Directors, as previously announced on September 29, 2021, continues to evaluate strategic value creation options, including the potential spin of Hexion’s epoxy business and an IPO of Hexion’s Adhesives and Versatic product lines. Hexion Holdings has filed registration statements on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) for a proposed initial public offering on the New York Stock Exchange.
The potential spin transaction and IPO remain subject to SEC review, European works councils review, and market conditions. This press release is not an offer to sell securities.
Third Quarter 2021 Results
Total net sales for the quarter ended September 30, 2021 were $945 million, an increase of 49% compared with $634 million in the prior year period. Pricing positively impacted sales by $297 million due primarily to improved market conditions in our base epoxy resins and specialty epoxy resins businesses and significant raw material price increases contractually passed through to customers across many businesses. Foreign currency translation positively impacted net sales by $16 million due to the strengthening of various foreign currencies against the U.S. dollar in the third quarter of 2021 compared to the third quarter of 2020. Volumes negatively impacted net sales by $2 million, primarily due to volume decreases in our specialty epoxy product lines due to lower demand in China and volume decreases in our formaldehyde products driven by Hurricane Ida’s impacts in the Gulf Coast. These were partially offset by volume increases in our North American and Latin American wood adhesives product lines driven by strong market conditions across many key end-markets and increases in our epoxy and VersaticTM Acid and Derivatives product lines driven by strong market demand and continued recovery from COVID-19’s global economic impact across our various industries and markets compared to the third quarter of 2020.
Net income for the three months ended September 30, 2021 was $49 million compared to a net loss of $94 million in the prior year period. Total Segment EBITDA from continuing operations for the quarter ended September 30, 2021 was $188 million, an increase of $97 million compared with the prior year period, or 107 percent, reflecting strong volume gains across both the Adhesives and Coatings and Composites segments, improved market conditions across many of our businesses and raw material productivity positively impacting our wood adhesives and formaldehyde product lines.
Liquidity and Capital Resources
As of September 30, 2021, total debt was approximately $1.6 billion and consisted primarily of the Company’s approximately $1.2 billion Senior Secured Term Loans due 2026 and $450 million Senior Notes due 2027. At September 30, 2021, the Company had $721 million in liquidity, including $352 million of unrestricted cash and cash equivalents. Hexion has no upcoming maturities on its term loan or notes until 2026.
November 11, 2021
Sabic Introduces MOCA Replacement
SABIC’S NEW NORYL™ POLYOL IMPROVES PERFORMANCE OF MDI-BDO CAST POLYURETHANES AND OFFERS ALTERNATIVE TO TDI-MOCA CURED SYSTEMS
11/11/2021
Home > News & Media > Latest News > SABIC’S NEW NORYL™ POLYOL IMPROVES PERFORMANCE OF MDI-BDO CAST…
SABIC, a global leader in the chemical industry, today announced that its recently launched NORYL™ AP2001G aromatic polyol can significantly improve the performance of hot cast polyurethanes (PUs) based on methylene diphenyl diisocyanate (MDI) and polytetramethylene ether glycol (PTMG). By boosting the hardness, toughness and stiffness properties of cast PU by double digits, NORYL AP2001G polyol can enable MDI formulations cured with 1,4-butanediol (BDO) to deliver equivalent or better performance compared to toluene diisocyanate (TDI) and PTMG PU formulations cured with MOCA (4,4′-methylene bis(ortho-chloroaniline)).
Due to increasing scrutiny in the use of MOCA as a substance of very high concern (SVHC) in the European Union, many PU manufacturers have adopted alternative formulations, including MDI-BDO. However, existing MDI-BDO systems pose performance challenges including lower mechanical and chemical properties vs. TDI-MOCA systems. SABIC’s NORYL AP2001G polyol for MDI-BDO systems addresses both the SVHC issue and performance deficiencies of existing materials, providing formulators with an alternative solution to TDI formulations and an opportunity to reduce or eliminate MOCA.
“As manufacturers began to transition away from SVHCs, SABIC understood the need to assist customers with this challenge,” said Antonello Cerullo, Ph.D., senior business development manager, SABIC. “We collaborated with Troy Polymers to validate the notable performance benefits of our new NORYL polyol for MDI-BDO systems. Thanks to our innovative new modifier, customers may now achieve results comparable to – or even better than – what they experienced with TDI-MOCA and MDI-BDO formulations, while staying ahead of the tighter restrictions that are being placed on the MOCA curative.”
Validating Performance Properties vs. MDI-BDO PUs
SABIC engaged Troy Polymers, a leading research and development laboratory based in Madison Heights, Mich., in the United States, to formulate PU samples using NORYL AP2001G polyol and conduct extensive testing and validation. The results showed that NORYL AP2001G polyol (at a loading of 5.6 percent) improved several properties of MDI-BDO cast PU formulations.
The SABIC modifier delivered up to a 30 percent increase in toughness, up to a 26 percent boost in tensile stress at break, up to an 8 percent improvement in elongation at break, and up to a 1.4 point jump in Shore D hardness.
Testing also revealed that NORYL AP2001G polyol can enhance hardness and toughness performance at high temperatures up to 70°C, which potentially allows MDI-BDO cast PU to be used in extreme conditions, such as for oil and gas exploration, gasketing and mining applications.
In terms of processability, when NORYL AP2001G polyol was added to the pre-polymer, the cast PU showed a longer pot life than a baseline MDI-BDO system. Details on the test methodology and results can be downloaded here.
“Based on our extensive experience in innovative polyurethane solutions, we have verified the benefits of SABIC’s NORYL AP2001G polyol for cast polyurethanes based on MDI-BDO systems,” said Aisa Sendijarevic, Ph.D., research director, Troy Polymers. “While MDI-BDO technology can replace TDI-MOCA in some applications, adding NORYL AP2001G polyol significantly improves MDI-BDO performance and offers an alternative that is free of substances of very high concern. Our test results indicate this SABIC polyol may enhance the performance and regulatory compliance of cast polyurethane.”
November 11, 2021
Sabic Introduces MOCA Replacement
SABIC’S NEW NORYL™ POLYOL IMPROVES PERFORMANCE OF MDI-BDO CAST POLYURETHANES AND OFFERS ALTERNATIVE TO TDI-MOCA CURED SYSTEMS
11/11/2021
Home > News & Media > Latest News > SABIC’S NEW NORYL™ POLYOL IMPROVES PERFORMANCE OF MDI-BDO CAST…
SABIC, a global leader in the chemical industry, today announced that its recently launched NORYL™ AP2001G aromatic polyol can significantly improve the performance of hot cast polyurethanes (PUs) based on methylene diphenyl diisocyanate (MDI) and polytetramethylene ether glycol (PTMG). By boosting the hardness, toughness and stiffness properties of cast PU by double digits, NORYL AP2001G polyol can enable MDI formulations cured with 1,4-butanediol (BDO) to deliver equivalent or better performance compared to toluene diisocyanate (TDI) and PTMG PU formulations cured with MOCA (4,4′-methylene bis(ortho-chloroaniline)).
Due to increasing scrutiny in the use of MOCA as a substance of very high concern (SVHC) in the European Union, many PU manufacturers have adopted alternative formulations, including MDI-BDO. However, existing MDI-BDO systems pose performance challenges including lower mechanical and chemical properties vs. TDI-MOCA systems. SABIC’s NORYL AP2001G polyol for MDI-BDO systems addresses both the SVHC issue and performance deficiencies of existing materials, providing formulators with an alternative solution to TDI formulations and an opportunity to reduce or eliminate MOCA.
“As manufacturers began to transition away from SVHCs, SABIC understood the need to assist customers with this challenge,” said Antonello Cerullo, Ph.D., senior business development manager, SABIC. “We collaborated with Troy Polymers to validate the notable performance benefits of our new NORYL polyol for MDI-BDO systems. Thanks to our innovative new modifier, customers may now achieve results comparable to – or even better than – what they experienced with TDI-MOCA and MDI-BDO formulations, while staying ahead of the tighter restrictions that are being placed on the MOCA curative.”
Validating Performance Properties vs. MDI-BDO PUs
SABIC engaged Troy Polymers, a leading research and development laboratory based in Madison Heights, Mich., in the United States, to formulate PU samples using NORYL AP2001G polyol and conduct extensive testing and validation. The results showed that NORYL AP2001G polyol (at a loading of 5.6 percent) improved several properties of MDI-BDO cast PU formulations.
The SABIC modifier delivered up to a 30 percent increase in toughness, up to a 26 percent boost in tensile stress at break, up to an 8 percent improvement in elongation at break, and up to a 1.4 point jump in Shore D hardness.
Testing also revealed that NORYL AP2001G polyol can enhance hardness and toughness performance at high temperatures up to 70°C, which potentially allows MDI-BDO cast PU to be used in extreme conditions, such as for oil and gas exploration, gasketing and mining applications.
In terms of processability, when NORYL AP2001G polyol was added to the pre-polymer, the cast PU showed a longer pot life than a baseline MDI-BDO system. Details on the test methodology and results can be downloaded here.
“Based on our extensive experience in innovative polyurethane solutions, we have verified the benefits of SABIC’s NORYL AP2001G polyol for cast polyurethanes based on MDI-BDO systems,” said Aisa Sendijarevic, Ph.D., research director, Troy Polymers. “While MDI-BDO technology can replace TDI-MOCA in some applications, adding NORYL AP2001G polyol significantly improves MDI-BDO performance and offers an alternative that is free of substances of very high concern. Our test results indicate this SABIC polyol may enhance the performance and regulatory compliance of cast polyurethane.”
November 11, 2021
Evonik Foam Recycling Program
Evonik develops new chemical recycling process for polyurethane foam
By Mary Page Bailey | November 11, 2021
Evonik Industries AG (Essen, Germany) announced that it has developsx an efficient chemical recycling process for converting flexible polyurethane (PU) foams back to the original polyol raw material. Evonik’s new hydrolysis recycling process has the potential to achieve circularity in the flexible PU foam industry.
As the next phase of the development, Evonik will scale-up trials of its new process, which has been further strengthened by its partnership with The Vita Group, a leading provider of value-added and differentiated flexible PU foam products. The Vita Group has trialled the recycled polyols from Evonik’s hydrolysis process in several of its flexible foam applications.
According to the latest report from EUROPUR (European association of flexible polyurethane foam blocks manufacturers), some 40 million mattresses are discarded each year in Europe alone, with the majority ending up as landfill creating the equivalent of 600 kilotons of waste: including more than
300 kilotons of PU foam. With the potential to recycle the main component materials used in flexible PU foams and PU foam-based mattresses, Evonik’s process offers significantly higher use levels of the recycled polyol compared with existing commercialized technologies.
Evonik’s solution will contribute to the global flexible PU industry’s sustainability expectations of reducing waste and increasing the use of renewable raw materials in the production of its products. This enables Evonik to expand its position as a leading solutions provider for the PU industry and supports the entire Evonik Group’s objectives of establishing a fully functioning circular economy.
“It’s only by recycling products back to their raw materials and reusing them over and over again that we will enable a fully circular economy,” said Ralph Marquardt, Head of Evonik’s polyurethane additives business. “Our new hydrolysis process delivers recyclates of a quality and performance similar to that of virgin raw materials. Thus, innovative foam producers like our partner The Vita Group can meet their own sustainability targets, while continuing to deliver high-quality PU products.”
“The Vita Group is renowned for our long-history of innovation in sustainability and investing in circular economy products. We recycle and rebond over 30,000 tons of trim each year, as part of our dynamic sustainability agenda,” said Ian W. Robb, Group CEO for The Vita Group. “Sustainability and innovation are central principles of every aspect of our business. We see it as our responsibility to be at the vanguard of the development of eco-friendly technology within our industry. This hugely exciting partnership represents a key milestone on our journey to achieving the circular economy we are all striving for, and we look forward to working closely together with Evonik.”
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