6/11/2023 0 Comments Hexio level 39The Company received gross cash consideration for the Held for Sale Business in the amount of $304 million. On April 30, 2021, the Company completed the sale the sale of its Phenolic Specialty Resin (PSR), Hexamine and European-based Forest Products Resins businesses for approximately $425 million to Black Diamond and Investindustrial. Going forward, supported by tail winds in multiple key end markets and a track record of controlling costs, we are focused on driving year-over-year earnings growth, generating strong levels of free cash flow, and increasing stakeholder value through opportunistic share repurchases and debt reduction." We expect continued strong progress and a robust second quarter 2021. We are encouraged by the underlying demand trends we are seeing. The proceeds from the transaction further improves our financial flexibility and liquidity profile as we used a portion of the proceeds to repay EUR 125 million of the EUR-denominated Senior Secured Term Loan in early May. Rogerson added: "We were also pleased to complete the sale of our Phenolic Specialty Resin, Hexamine and European-based Forest Products Resins businesses at the end of April. ![]() Our associates also remain focused on operating our plants safely by following closely all the proper COVID-19 protocols, and I’d like to recognize their ongoing dedication to serving our valued customers." In addition, our first quarter results, while very strong, were negatively impacted by the winter storms and do not reflect any potential insurance recovery proceeds in the period. For example, in 2020, about 20 percent of our sales came from new products that were developed within the last five years, such as our recently-introduced ArmorBuilt™ fire resistant wrap, and we are working closely with our research and development teams to drive this percentage even higher over the next several years. We were also pleased to drive a significant increase in our Segment EBITDA margins in the first quarter, which exceeded 15%, and reflects our multi-year efforts to strategically invest in highly-targeted growth capital expenditure projects and align our portfolio with more sustainable products. "This is the third consecutive quarter we’ve posted solid year-over-year improvements in Segment EBITDA as our product portfolio is well positioned to benefit from the improving demand we are seeing from new home construction, remodeling, wind energy, and general commercial construction, as well as the general economic recovery from the pandemic. "Our first quarter 2021 results demonstrated strength across the board as Segment EBITDA increased by $41 million, or 56 percent compared to the prior year," said Craig Rogerson, Chairman, President and Chief Executive Officer. ![]() (“Hexion” or the “Company”) today announced results for the first quarter ended March 31, 2021. COLUMBUS, Ohio-( BUSINESS WIRE)-Hexion Inc.
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